Getting started in commercial property management

Commercial property management is a highly specialised area and can lead to a multitude of opportunities and growth. For those looking at entering commercial property management, here's a top-four overview to get you ready to take the next step.

1. Role and responsibilities

As a commercial property manager, you carry out day-to-day management and operational functions of assigned properties. Responsibilities include anything from financial aspects of the property to communicating directly with tenants on behalf of the property owner, conducting inspections and organising insurance and repairs.

2. Residential versus commercial property management

A common misconception is that the role of a residential property manager is much the same as a commercial property manager. For anyone looking to move from one to the other, a commercial role requires a more strategic focus — working with complex and large properties, often involving more legalities.

For instance, residential property management is governed mainly by the Residential Tenancies Act 1986 (RTA), the Building Act 2004, The Building Code, Housing Improvements Regulations 1947, and the Residential Tenancies (Healthy Home Standards) Regulations 2019.

Commercial property management is governed by the Property Law Act 2007, and commercial property leases are based on a Deed of Lease. Often, lawyers are involved when an owner and tenant enter into an agreement. Commercial tenancies also tend to be longer in duration than residential tenancies.

3. Property use

Commercial property tenants are businesses or people conducting business within them. Building tenants range from retail, office spaces, shopping centres and industrial services. As a commercial property manager, you will need to understand the property space functions and its surroundings to manage the property and the tenants successfully, and effectively liaise with its owner.

4. The makings of a great commercial property manager

You are the professional connection between tenants and property owners. You represent the owner but have duty of care to the tenant.

Being aware of this connection and how to balance supporting owners and their assets and the needs of a tenant is vital to being a great commercial property manager.

Ready for next steps?

So, now you have a basic understanding of what it takes to get started in the commercial property management sector, but what’s the next step?

REINZ is now offering a new course — the Beginner’s Guide to Property Management. This course is a great opportunity to get a taste of working and managing properties in the commercial sector.

The course is ideal for branch managers inducting new staff, agents wanting to expand their knowledge and understanding of commercial property management, or anyone who wants to start a new career. The best part is no prior experience is needed. The four-hour induction course will ensure you feel confident and empowered about the basics of the job.

If you’d like to learn more about this course, email education@reinz.co.nz.