Property Brokers - Commercial Property Management Booklet – Palmerston North

Commercial

Property Management Palmerston North

pb.co.nz Property Brokers Ltd Licensed REAA 2008

Welcome to Property Brokers’ Country Ki ngā hau e whā o te motu, e mihi ana, e mihi ana, e mihi ana. Nau mai ki Property Brokers. Kei konei mātou hei tautoko i a koutou i runga i te waka nei.

Property Brokers is managed by local people, staff are passionate about their town or city, and committed to contributing to the health and wellbeing of local communities.

We have a strong focus on technology, communication and outstanding customer service. Our comprehensive property management service will help maintain your capital investment and provide you with the expertise to grow your investment in the years ahead.

We stand behind our service, offering absolute peace of mind with your investment property.

We are committed to ‘Property Brokers’ Country’ and we invest in our community. We invite you to experience the Property Brokers’ culture – you won’t regret it!

Tim Mordaunt Managing Director, Property Brokers Limited

Thank you for considering Property Brokers Commercial Property Management.

Property Brokers is the largest real estate company in the lower North Island and has the largest market share in the region. At Property Brokers we pride ourselves on being professional, focused and honest, always striving to be the best at what we do and achieve the best results for our clients. We are highly experienced commercial property managers and knowledgeable about all aspects of the industry.

Our software systems are some of the most advanced in New Zealand, ensuring we give tenants and landlords excellent service and support, and landlords accurate and timely reporting on all matters concerning their properties. With the latest technology and a strategic management approach, we can reduce risk and optimise the performance of your asset.

Our Compliance Division services over 1,200 commercial properties in the Manawatu/Whanganui/Wairarapa region, and our sales and leasing team are actively working for our clients to lease vacant space and source investment opportunities.

3

Safeguard your investment Safeguard your investment with our Commercial Property Management division’s expertise and services.

With in-depth market knowledge, good understanding of legislation and a plus a proactive approach, you can rest assured all aspects of commercial property management are being professionally administered.

From screening tenants and reviewing rents, to providing regulatory compliance documentation and overseeing capital works, our dedicated team are always there to provide a dependable and consistent service you can rely on.

Backed by New Zealand’s largest privately owned real estate company, we have the experience and scale to help you achieve your investment goals.

4

What we do We offer a comprehensive range of commercial property management and compliance services, tailored to your needs.

Services include: • • • • •

Facilities and maintenance management and contracts Rental collection and debtor management Tenant liaison and retention Vacancy Management Collection of outgoings and preparation of annual building budgets • Accounts payable • Monitoring tenant repairs and maintenance

• • • • • • • •

Property inspections Lease renewals, rent reviews and negotiations Building Warrant of Fitness and legal compliance Leasing Preparation of due diligence for sale purposes Reporting to landlord Full suite of accounting reports Insurance / valuations

5

Our services Our Commercial Property Management division covers a multitude of property types throughout our region including commercial, retail and industrial. Our services are tailored to your individual needs and can include the following.

Rent and outgoings collection We collect rental and outgoing funds from tenants and depending on your preference, either hold them in an audited trust account or have these directed to your own nominated account.

Apportionment statements of outgoings are generated and issued to tenants for recovery.

Accounting software allows us to closely monitor each payment and immediately notifies us if any payment has been missed.

Our commercial property managers will promptly notify tenants of outstanding monies owed and arrange for recovery.

Lease renewals and tenant retention strategy Our approach is to establish and maintain high quality relationships with tenants encouraging long term leasing. Our team is always up-to-date when it comes to competing properties, vacancy rates and market trends.

Prior to upcoming lease expiries or renewals the team will be in close consultation with current tenants to discuss their desire to stay on. If they do not plan to stay, the team will be prepared with a replacement strategy.

6

Inspections - building and services condition reports A core component of commercial property management is regular monitoring and maintenance. This ensures your asset remains in excellent condition.

Planned and preventative maintenance plans Similarly to regular inspections and monitoring, when it comes to maintenance we believe a little and often is better practice than irregular and significant. We take a proactive approach to maintenance and assess all areas of the property identifying potential vulnerabilities that may require future work. We then devise a strategy or manage capital expenditure in a cost efficient manner.

Health and safety management Under the Health & Safety at Work Regulations 2016, it is a requirement that all persons conducting a business or undertaking (PCBUs - which includes building owners) must ensure, so far as reasonably practicable, that the workplace is without risks to the health and safety of any person. We can take care of the intricate legislation and legalities behind your investment property and provide a robust health and safety monitoring system which includes hazard identification surveys and contractor pre-qualification.

Vacancy management

Supervision

We work closely with internal and external leasing teams to make certain that any upcoming vacancies are circulated and advertised well in advance. Marketing of the property must meet certain standards and is done in a way which maximises the exposure of your property to achieve the best outcome thus minimising vacancy.

Projects or undertakings of any size, be it regular or ‘oneoff’ services or repair work, will be closely monitored for performance and completion ensuring they are in line with outlined standards and schedules prior to signing any invoice. For any expenditure over an agreed limit, the landlords prior approval is required prior to instructing contractors.

We then utilise our strong negotiation skills and market knowledge, achieving a robust and desirable lease.

We can also advise where there is potential to attract certain tenants through add-value activities such as refurbishments and fit-outs.

Rent reviews A key component of every commercial lease is the rent review process. Whether it be fixed, market or CPI rent reviews, we make it easy. Prior to upcoming reviews we calculate new rents, staying in close consultation with tenants throughout the process, and ensuring they are well informed and prepared upon implementation.

Account management Our team will take care of day-to-day activities including standard accounting functions. Common functions include invoicing lessees for rent and outgoings, receiving tenant payments and disbursement of funds to owners/suppliers.

We review and maintain accurate cash flow projections and budgets and provide reports on a monthly basis.

Building Warrant of Fitness Building owners must renew a Building’s Warrant of Fitness (BWoF) every twelve months. This must be signed, issued and publicly displayed to prove the building’s specified systems have been maintained and inspected.

We can facilitate and manage these requirements. In consultation with the owner, we can arrange annual insurance valuation certificates.

7

7

Why choose us At Property Brokers we have a large energetic team of commercial experts working across New Zealand. We offer a comprehensive range of commercial property management services tailored to your needs.

Knowledge, experience, marketing and leasing technology Whatever your requirements, we work with you to establish a strong, on-going relationship built on trust, transparency and integrity.

In today’s environment there is an increasing demand for transparency, effective risk management and compliance whilst also delivering cost efficiencies. With an experienced team of property and asset management specialists located around New Zealand, we have the scale and local market coverage to provide clients with market leading services and risk protection.

Our experts are backed by an array of resources and infrastructure to ensure we consistently create real value for our clients through excellent property performance.

• Our team of experienced inhouse accountants provide financial management of all income and expenditure.

This includes a comprehensive annual budget, ensuring that outgoings and expenses are effectively managed throughout the year.

• We provide independent advice on all property matters, including leasing of space, tenant management and rent collection and reviews.

• Our property manager is available 24 hours a day, 7 days a week and can attend shareholder meetings to deliver building updates and reports if and when requested.

• Re-Leased - automated, intelligent commercial property management software. Commercial property is changing faster than ever. Traditional property management tools have not kept pace. Re-Leased is the cutting-edge property management software you need to be a disruptive force in your market.

8

Accounts We take pride in ensuring that all our tenants, owners and creditors are provided with first class service.

Our centrally located accounts team ensure all payments are documented and processed accurately and on time.

All rent monies are banked directly into our trust account which is balanced daily and audited on a regular basis.

Payments to owners and creditors are made fortnightly, or monthly.

Our advanced software system is used to retain records, documentation, pay accounts, record income and expenditure, maintain insurances and Building Warrant of Fitness.

Our accounting and reporting is designed to ensure smooth amalgamation with our client’s GST returns and auditing documentation.

Maintenance We only use the best tradespeople to carry out repairs and maintenance.

They are fully qualified, carry relevant and accurate insurances and have Service Level Agreements with Property Brokers.

Because we have a high volume of work, we can pass on competitive trade rates to you, for your property repairs and maintenance.

When a tenant vacates your property we conduct a rigorous final inspection and ensure all damages are repaired.

All tenants have access to a 24/7 free phone New Zealand call centre for emergency repairs.

9

FAQs Here are the answers to some frequently asked questions about Property Brokers’ asset management service.

How much will it cost?

When do you pay me?

Our service is tailored to your individual requirements so fees will vary depending on the type of property and level of service you require. Fees start as low as 4.5% of the gross rental and in many cases will be payable by the tenant.

In most cases you will be paid monthly. Commercial rents are generally collected on a monthly basis. After these funds have been received to our trust account they will be disbursed directly to your nominated account.

What is OPEX? OPEX is an abbreviation for Operating Expenses (also known as outgoings). These are the necessary costs associated with maintaining a commercial property. This incorporates fees such as council rates, water rates, health and safety systems, alarm monitoring, common area cleaning, management and ground maintenance.

Do you charge to advertise my property?

In most cases, no. Part of our management service includes liaising with leasing agents and ensuring the property is adequately marketed through various online platforms. On-site signage will also be provided wherever suitable. If additional marketing is desired, this may incur a cost.

What if I decide to sell?

No worries. If you decide to sell our management contract can be terminated with one month’s notice. We can also assist with the sales process. We have one of the most effective commercial sales teams in the region.

10

Can you assist with compliance and regulatory requirements?

Yes. We can assist in ensuring your property meets the statutory requirements by identifying and advising any potential substandard areas required to meet standards those stipulated by Health & Safety at Work Act and the Building Act.

What if my tenant falls into arrears?

Our software notifies us immediately if any payments are missed. Our team will then promptly move to recover these costs on your behalf.

I’m overseas a lot, how do I stay informed?

We make use of the latest technology available.

The software we use allows owners to track financial performance as well as any maintenance and inspections of the property in real-time from anywhere in the world via computer or mobile device.

For all your commercial property management needs, please call 0800 367 5263 or email cpm@pb.co.nz

Licensed REAA 2008

160919

Disclaimer. While all care has been taken in preparing this publication, Property Brokers Ltd, its sales consultants and staff accept no responsibility for the accuracy of the information at any time. The information contained has been prepared by PBL for informational purposes only and should not be a substitute for legal, or other professional, advice; you are advised to seek specific advice relevant to your circumstances from a suitably qualified professional.

PBL does not accept any responsibility or liability for any action taken as a result of relying directly or indirectly on the information in this document. How you use the information is your sole responsibility. If you have concerns about the information 12 in this publication, contact PBL directly.