Year-End Financial Reporting

Commercial Properties: Year-End Financial Reporting Tips

commercial properties

Part of maintaining a healthy commercial properties real estate portfolio is year-end financial reporting. While it may not be the most exciting part of your job as a property owner, it is an absolutely necessary one. At Clarity Commercial, we often provide financial reporting as a service to our clients. Here are a few of the reports we may look at to help our clients plan for the new year and beyond.

Run Your Year-End Balance Sheet for your Commercial Properties

A year-end balance sheet is a very common financial report across all types of businesses. It provides an overview of your commercial property portfolio’s assets and liabilities in real dollar amounts. Consider your year-end balance sheet a snapshot of the health of your portfolio. It may not tell the complete financial story of your properties, but it will give you an idea of what happened over the last year so you can start planning for next year.

Compile Your Rent Roll Report

If you manage tenants, then you know how important your rent roll report is to the health of your books. It’s one of the core elements of good financial reporting for commercial properties. Your rent roll report will tell you your income from every tenant suite in every property you own. Some property owners prefer to run a separate rent roll report for each property in their portfolio, while others like to see their entire portfolio compiled in a single report.

A comprehensive rent roll includes the income coming in from a particular space as well as market or zoning, the type of property, the address, and square footage. It may also indicate tenant lease dates, prepaid or past-due rent, and other tenant income and expenses. Your rent roll report offers many valuable insights into the health of your portfolio, so be sure to take a look at it at year-end.

Check Your Lease Expiration Report

To keep tabs on which leases will be expiring in the new year, run a lease expiration report. It will show you when tenants’ leases are up so you can approach them about renewing or start your hunt for new tenants. The report also gives you an at-a-glance insight into how many square feet will expire each month and how much income that represents.

Review Your Expense Recovery Estimates

As you know, property improvements, maintenance, and repairs are unavoidable expenses for a commercial property owner. An expense recovery estimate report will help you track current expenses and predict when you will recoup those costs.

Contact US

Financial reporting is an essential tool in maintaining a healthy and profitable commercial real estate portfolio. For assistance running and interpreting your financial reports so you can make better business decisions for your portfolio, get in touch with the Clarity Commercial team today

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.


Building Strong Tenant Relationships

4 Tips for Building Strong Tenant Relationships

Medical - Tips for Building Strong Tenant Relationships
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Every commercial landlord wants to have happy, long-term, paying commercial real estate tenants. Just like anything worth having, building strong tenant relationships with your tenants takes work. Here are Clarity Commercial’s top tips to strengthen the relationships you have with your tenants to ensure they stay happy, long-term tenants who pay the rent on time.

Communicate Regularly to Building Strong Tenant Relationships

Open and honest communication is the foundation of a strong tenant-landlord or tenant-management relationship. During lease negotiations, be clear about the expectations tenants can have for you regarding when, how, and how often you’ll communicate with them, and vice versa.

Tenants are busy people just like you, so use a variety of methods to reach out to them. Letters in the mailbox or under the door, phone calls, emails, and texts are all effective ways to keep in touch with your tenants. You may also consider using a property management app to manage your communication with tenants.

Be Firm Yet Fair

Your property is a business, and your tenants have all signed agreements with you to pay rent every month for a certain length of time. As last year taught us, life happens. When dealing with tenants on any issue, but especially on issues regarding payment, it helps to be firm yet fair and empathetic. You and your tenants are not adversaries. If an issue arises, work together to find a solution.

Maintain and Repair Tenant Spaces: Tips for Building Strong Tenant Relationships

You expect your tenants to pay on time and be considerate to their neighbors and to you. In return, they should trust that you will answer their questions and address their requests and concerns directly, quickly, and professionally. Take maintenance and repair requests seriously and solve them the right way the first time. Implement a property improvement plan that includes property updates and upgrades to anticipate and prevent future tenant complaints.

Be Interested in Your Tenants’ Success

Your tenants are business owners, just like you. Be interested in and invested in their success. The more successful they are, the more likely they are to continue to rent space from you and possibly even expand their footprint. Your interest in their success will also make it easier for them to recommend you to the other business owners in their networks.

Building strong tenant relationships takes work, but it pays off in timely rent payments and happy, long-term tenants. For help building and maintaining strong relationships with your tenants, partner with commercial property management company Clarity Commercial.

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.

Audit Your Property's Security - property security

Audit Your Property’s Security Features

Audit Your Property's Security - property security

The security and safety of your commercial property is an ongoing concern. Not only do you want to ensure your physical building is protected, you also need to make sure its occupants are safe. An audit of your property’s security features can give you a clearer understanding of how well your building is protected and identify areas where you can make improvements.

Review Your Access Control System to enhance property security

Your property’s access control system serves several functions. It allows authorized people to enter and exit your building. It limits occupant access to the parts of your building their job or visit requires. Access control also prevents unauthorized visitors from gaining access to your building and alerts you when someone has entered your building by force.

Some access control systems are as simple as a master key system. But the most effective ones use cutting-edge technologies to keep properties safe. It is common for buildings to use passcodes, keycards and fobs, and even biometrics to manage access and monitor building occupants. Some use Bluetooth technology to allow visitors to open doors from their smart phones.

How does your access control system measure up? Are you still handing out physical keys, or have you upgraded to a more secure system? If you have multiple tenants, a mix of common spaces and private offices, or high occupant turnover, investing in a smarter access control system may pay off for you. Clarity Commercial can help you find the solution that’s right for you.

Take Another Look at Your Video Security and Surveillance

Security cameras and video surveillance technology has improved leaps and bounds over the last decade or so. If you are using an outdated system with fixed cameras and grainy, black-and-white video that’s accessible only on physical tapes, it’s time to upgrade.

Today’s video security systems use state-of-the-art technology to monitor your property. Cameras can rotate and provide crystal-clear HD video with color and night vision. Systems now store videos on the cloud so you can monitor them anytime, anywhere. Cameras are smaller and less conspicuous, so you can install more to cover more area. If you haven’t updated your video surveillance in a few years, it’s time to take another look.

Review Your Building Systems Monitoring and Alerts

While intruders, thieves, and vandals are the top targets of most security systems, your building’s systems can also do some major damage if a failure goes unnoticed. Many fire suppression, HVAC, water, and electrical systems now include monitoring systems that alert you immediately if a failure or outage has occurred. This allows you to take immediate action to remedy the situation and keep your building safe.

Building security and safety is a concern all year long. This summer, take some time to audit your property’s security features to uncover ways you can keep your building and its occupants safer. For help finding the right security solutions, contact the Clarity Commercial team today.

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.


Commercial Founder Mel Schultz

Join Us for These IREM Minnesota Events This Winter

The winter season is an excellent time to brush up on professional development. For commercial property managers, the Institute of Real Estate Management (IREM) is the best place to pursue continuing education. IREM Minnesota hosts events throughout the year for managers to hone their skills, pursue certification, and give back to their communities.

Here’s a look at the events coming up this winter at IREM Minnesota.

Ethics for the Real Estate Manager Course – January 29

IREM Minnesota starts the year off on a high gear with Ethics for the Real Estate Manager (ETH800), a course required for the ACoM, CPM, ARM, and AMO certifications. It’s taught by our very own Mel Schultz.

The day-long course will cover IREM’s code of ethics and give participants a chance to study real-world ethics cases and the implications they have on commercial property managers and their clients. The course will also cover strategies for overcoming ethical dilemmas and avoiding conflicts of interest.

Ethics for the Real Estate Manager also qualifies for 4 hours of continuing education for property managers. To register, visit iremmn.org.

Volunteering at People Serving People – February 10

IREM Minnesota members volunteer at People Serving People the second Monday of every month. People Serving People is a family-focused shelter that helps break the cycle of homelessness for families. The volunteers serve meals to the shelter’s residents.

This event is open to members and their colleagues, friends, and family members. To register, visit iremmn.org.

Northland Mechanical and IREM Minnesota Present Celebrate IREM! – February 21

Celebrate IREM! is the organization’s opportunity to reflect on the past year and celebrate successes. Attendees will enjoy cocktails, a plated dinner, awards presentation, volunteer recognition, gaming tables, and live music.

IREM members, partners, plus ones, and non-IREM property managers are all welcome. To register or sponsor a gaming table, visit iremmn.org.

Roundtable: Fenestration Field Testing – March 18

Terracon Consultants representatives Allen Witt and Ryan Nierengarten will hold a roundtable discussion on fenestration field testing this March. The discussion will cover ASTM methods for field testing and the differences between ASTM standards and AAMA standards.

By the end of the roundtable, participants will be able to identify different fenestration testing standards and determine when each are appropriate to use. To register, visit iremmn.org.

Virtual CPM Capstone – March 23–March 27

This virtual event allows participants to complete their CPM capstone projects without spending time in a physical classroom. The course is designed for CPM candidates who still need to complete their management plans and the CPM Certification Exams. It offers participants the chance to take the Management Plan Skills Assessment as an alternative to submitting an independent management plan. On the last day, CPM candidates take the CPM Certification Exam.

To register for the virtual CPM capstone, visit iremmn.org.

Clarity Commercial a proud, active member of IREM Minnesota. Our founder Mel Schultz serves as a senior vice president of the Minnesota IREM chapter. For more information on IREM or commercial property management, contact the Clarity team.

Commercial Founder Mel Schultz

Upcoming IREM Minnesota Events to Fill Your 2019 Calendar

Clarity Commercial is an active member of IREM Minnesota. Our local chapter of the Institute of Real Estate Management hosts events throughout the year to help real estate managers hone their skills (and have a little fun). Mark your calendars for these upcoming IREM events.

June 7: Property Management Summit at Golden Valley Country Club

On June 7, IREM Minnesota will host the Property Management Summit at Golden Valley Country Club. Real estate managers can earn four hours of CE credit for participating in the summit. The event will give an overview of the state of the real estate management industry, then offer four one-hour sessions that will cover business development, asset management, marketing, leasing, maintenance, and tenant improvements.

June 10: IREM 2019 Golf Tournament at Minnesota Valley Country Club

IREM members work hard, and they play hard, too! Register today for the IREM 2019 Golf Tournament in Minnesota Valley Country Club in Bloomington. Put together a foursome, win the beanbag tournament and best-dressed (and worst-dressed!) competition, and take a shot at $5,000 in the long putt contest. Look forward to seeing you on the course!

September 24: Roundtable on Construction Management & Tenant Improvement at The Harrington Company

The next IREM roundtable will cover construction management and tenant improvements. The members-only event will be held at the IREM Minnesota chapter office in Minneapolis on September 24. Participants will learn how to oversee tenant improvement and construction projects on smaller residential buildings and earn one hour of CE.

November 11–15: Asset Management Track Courses at Atria Corporate Center

IREM Minnesota will offer the Asset Management Track of courses November 11–15. Participants will complete three courses: Financing and Loan Analysis for Investment Real Estate, Performance and Valuation of Investment Real Estate, and Asset Analysis of Investment Real Estate. The Asset Management Track meets CPM program requirements.

This track of courses will build participants’ knowledge of financing as well as the valuation of real estate assets. IREM recommends that participants complete Budgeting, Cash Flow, and Reporting for Investment Real Estate before embarking on the Asset Management Track.

Clarity Commercial never takes time off from professional development. IREM events help us stay on top of changes in the real estate management industry so we can provide you with the best property management service possible. To learn more about how we can serve you, contact the Clarity Commercial team today.

Commercial Properties

Keep Guests and Employees Safe This Winter with These Snow & Ice Tips for Commercial Properties

Last month, Clarity Commercial shared three common winter challenges commercial property owners face and how to solve them. This month, we’re taking a closer look at the first challenge: snow and ice removal.

Tips for Clear and Safe Parking Lots  for Commercial Properties

In Minnesota, mountains appear seasonally. They tend to show up around the end of January in parking lots across the Twin Cities, then disappear sometime in May. Snow mountains are a fact of life for commercial property owners with parking lots. Not only do these piles of snow take up parking spaces, they can make it hazardous for your employees and visitors to navigate your lot.

Regular plowing and deicing will keep your parking lot surface clear and safe. But all that snow needs to go somewhere. In winters with below-average snowfall, you might be able to get away with allowing your snow mountain to accumulate. But in average or above-average snowfall, you will want to contract with a company to haul away some of your snow. Clarity Commercial has the resources to help you plow your snow, deice your lot, and reduce your snow mountain to Minnesota prairie.

The Best Way to Keep Outdoor Walkways Safe

Slip-and-fall accidents increase in the wintertime, which means out-of-work employees and even lawsuits if injuries are serious. What’s the best way to prevent slip-and-falls? Staying on top of the snow and ice on your walkways.

Most municipalities require owners to clear the walkways around their properties. Clarity can help you understand your city’s requirements. Our snow removal crews use snow blowers and shovels to clear snow from our clients’ walkways. We follow up snow removal with deicing, including salt and sand, if necessary. If snow is in the forecast, you may see our crews out before the weather hits to throw down a layer of salt, too.

Don’t Forget to Keep Interior Flooring Dry

Snow and ice removal doesn’t end once employees and visitors walk through your front door. Snow and salt on boots can muck up your floors and cause people to slip. Clarity recommends placing a few heavy-duty mats in your vestibule and lobby areas to catch water and salt. Our vendors also stop by at least once a week to replace wet and dirty mats.

Keep an eye on hardwood and tile flooring, both of which can get slick from melted snow. Mop up wet floors regularly and consider using an industrial blower fan to dry floors on stormy days. Carpets can get gummy with melted snow and salt. Schedule one or two carpet cleaning appointments throughout the winter to keep your floors looking nice.

Don’t let Old Man Winter get you down this year. Keep employees and visitors safe and dry as they come and go from your building. Clarity Commercial can help you stay on top of the snow this season. Contact us today to get started.

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.