When it comes to the management of Retail Property, the monthly report to the landlord allows current issues and forthcoming events to be documented and managed. The reporting process itself should be quite detailed and becomes even more important with larger properties with many tenancies.
With retail properties and shopping centers, it is not unusual to split the monthly reporting process into a number of important and critical categories of activity. The process itself allows the status of events to be monitored and documented; for that reason accuracy in the report is really important.
The response that the landlord gives to any recommendations and observations should also be documented and retained with a report to prevent any future disagrement or misunderstanding. So the reporting process is a very real control tool for property managers and landlords to interact with.
Retail Shopping Center's are a very vibrant type of property asset. Many things happen at the same time and can have impact across the entire tenancy mix. Accuracy and precision is required in property management business practices when you manage Retail Property and Shopping Centers. Ultimately you are endeavoring to stabilize rent, expenditure, and vacancy risk. From that base you can build a better retail property.
Here are some of the categories that can be incorporated into a detailed monthly property management report for a retail property and tenancy mix.
- The current income raised from the property should be detailed and discussed in written form. This will include any reference to lease documentation where rental escalations and rent reviews are being exercised. This record of comment is invaluable as time progresses and you have any need to go back in time and look at decisions or directions incorporating tenants and landlord.
- Should you have a larger number of tenants and or property configuration to manage it will not be unusual to have arrears active in a number of leases. Every arrears situation will involve lease documentation, instructions of the landlord, and actions of the tenant. Any agreements for updates regarding arrears matters should be incorporated into your monthly report. It should also be said that arrears should be closely monitored so you know when they occur and have definite instructions of the actions you need to take.
- The expenditure for the property will be detailed in an expenditure report that reflects the payment approvals of the landlord and the agreed budgetary processes for the property. Any items of an unusual nature within expenditure should be itemized to the landlord for their awareness. Any items of an emergency nature are usually responded to in keeping with the landlord's permissions to the property manager.
- Any items of capital expenditure nature should not be processed within the day to day maintenance expenditure for the property. It is appropriate to have a capital expenditure cost code that you can use with these separate items of expenditure. They can then be handled appropriately as a capital item given the tax laws in your country. If you do not understand the issues of capital expenditure, it pays to check with a property experienced accountant.
- At the end of each month an accurate tenancy schedule should be provided to the landlord. Whilst this will normally come from a computer based property management software program, the tenancy schedule should be checked prior to dispatch to the landlord. It is not unusual to find errors in tenancy arrangements simply because the property manager has not set the tenancy activity up to date. If someone gives you a tenancy schedule, check it against the current leases as a matter of priority before you take any action from the tenancy schedule.
- The day to day maintenance activity within the property will parallel the expenditure budget and the approvals from the landlord. Maintenance activity should be carefully explained, updated, and completed within the jurisdictions of the landlord or the landlord's budget. This forms part of your monthly report to the landlord.
When you create an accurate monthly report, it is a powerful business tool in the property management processes for your clients. It allows you to document activity, landlord instructions, and monitor or prevent any future disagreement between tenants and landlords.