Stephen Prozinkski
The commercial real estate market has always been shaped by cycles. Shifts in demand are constantly changing how brokers, tenants and property owners interact. In the current cycle, changing tenant priorities and evolving market conditions are challenging the commercial real estate industry to adapt and find new strategies to thrive. Yet, through every upswing and downturn, one principle remains constant: Strong relationships are the foundation of lasting success in real estate.
As we all know, this is a relationship-driven industry, and relationships that are meaningful and lasting will pay dividends no matter the state of the market. But what makes for a good relationship? At the heart of any strong relationship is trust and likability. Let’s explore how these play out in the service line of property management.
Trust reflects competency and quality of execution. In other words, it entails knowledge and experience. As a property manager, you are charged with the upkeep of a landlord’s asset. How that asset is maintained is noticed by those who interact with it, be it the tenants or members of the public. A well-maintained property reflects positively on the owner, just as a poorly maintained property reflects negatively. Landlords understand this intuitively.
Deep Knowledge of Client Crucial
Cohesion in the team is crucial to building trust and showcasing capabilities to a client. One of the most common reasons landlords seek new property management partners is due to turnover. All too often, a team is set up to manage a property and, over the course of a year, multiple members leave for other employment opportunities.
The consequence of these personnel changes is an inability to build deep knowledge of the property and client. The client sees senior members gradually being replaced by fresh-faced junior staff who, while eager, need training.
The persistent start-stop nature of the team opens the likelihood that information or tasks will fall by the wayside, whether due to an incomplete transition or someone who is learning on the job. It is a recipe for leaving the client apprehensive about the upside of maintaining the relationship.
Over time you gain knowledge and experience but being well-liked takes personality and effort. Clients do not just want to have faith in the work, they want to know you and like working with you. This is where courteous and consistent communication comes into play. When communicating with a landlord, taking the time to exchange pleasantries before addressing business allows you to connect as human beings. This is important for more than just optics.
Communicate, Be Flexible
The effort to put yourself out there, communicate well and to call a client for no reason other than to see how they are doing goes a long way. If communication is open and respectful, it makes difficult conversations, like budgeting, easier to have. On the other hand, if communication is difficult, one, if not both parties, may be reluctant to reach out to their counterpart, which can exacerbate an issue via delayed action.
Also, a willingness to be flexible and customize services to the needs of the landlord is important. For instance, one company may want to do its own accounting on a property while another may elect to have that taken care of by the property management company. Either way, it is incumbent on the property manager to meet the client’s desires.
This culture-driven approach is embedded into everything we do at Hunneman, and it has enabled the property management team to grow a portfolio of over 15.4 million square feet of office, industrial, flex, multifamily and retail properties throughout New England.
Clients who feel valued often return with more business, expand services, refer new business and can become powerful advocates within the real estate community. By focusing on the people as well as the buildings we managed, we have been fortunate to amass an array of landlords who prioritize or even require working with us. It is an attractive position to be in and a compelling argument that strong client relationships remain the ultimate factor for lasting success in property management.
