Commercial real estate management service and its main types

A commercial property management service, also known as “trust management”, is the transfer of authority to conduct business related to real estate from the owner of the property (or the person who rents it) to a company specializing in this field of activity.

If we talk directly about commercial real estate, then the manager gets at his disposal retail or industrial premises related to the non-residential fund, which includes both full-fledged buildings and MAF (trade pavilions and kiosks). To some extent, this resembles mediation, but there are significant differences: a full range of services is provided, for which the manager receives remuneration, the work schedule is approved in advance, and it is necessary to provide a report on the effectiveness of his activities.

For the convenience of understanding how trust management works, its functionality is subdivided into several types.

Technical regulation
This process includes the maintenance of commercial premises in such a way that they can fulfill their functional purpose:
1. Maintenance of power supply systems, heating, water supply, ventilation, air conditioning, fire safety and others;
2. Carrying out repairs and finishing works in retail premises;
3. Inventory of equipment, furniture and other objects;
4. Work to eliminate the consequences of emergencies;
5. Seasonal preparation of premises for the heating season.
All work is carried out on the basis of building codes, requirements of technical supervision, sanitary and epidemiological supervision, energy supervision and other regulatory organizations.

Economic management
Profit and cost management in the operation of retail premises:
1. Foreign economic activity;
2. Taxation of real estate objects;
3. Adjustment of depreciation charges.
Owners or persons who rent premises for rent can adjust the amount of authority given to the manager, which is prescribed in advance in the contract.

Organizational matters
Their solution is usually regulated by internal regulatory documentation (job descriptions, charter, company regulations, etc.). There are 3 main types of influence: administrative (methods that are mandatory, directive), organizational and stabilizing (regulation, rationing, instruction) and disciplinary (management of employees in accordance with the Labor Code).