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Navigating the Landscape of Commercial Property Management in New Zealand

Property management presents a unique set of challenges that require strategic planning, exceptional people skills, and an unmistakable understanding of laws and regulations. In New Zealand, commercial property managers are navigating these complexities on a daily basis.

Author: Ryan Mudler

Published: 12 October 2023

Let’s delve into five common pain points they encounter and explore how a deeper understanding of insurance complexities can help to unravel these issues.

Property Maintenance and Repairs

Ensuring commercial properties are always in top shape is a constant challenge. Whether it’s routine maintenance or unexpected repairs, the financial and logistical aspects can be overwhelming. A comprehensive insurance policy that covers these eventualities can provide peace of mind and financial security. It is important to remember that a structured maintenance plan can help alleviate potential risks they may not be covered under insurance.

 Tenant Issues

Tenant-related issues are a common hurdle in commercial property management. Disputes can arise over a multitude of issues – misconduct, late payments, or property upkeep. A robust liability insurance policy can protect property managers from potential legal and financial ramifications. This is normally in the form of Office Bearers liability.

Regulatory Compliance

Property laws and regulations frequently change and can often be complex. It’s vital for property managers to stay updated with these changes to maintain compliance. This is where having proper insurance advice is critical, ensuring nothing falls through the cracks and your property remains insured under all circumstances. The premium is the easy part, but if you think that the lowest premium is doing what’s best for your clients, you may want to rethink that strategy.

Vacancy Rates

High vacancy rates equate to lost revenue. Filling these vacancies with the right tenants can be a daunting task. Loss-of-rent insurance can offer a safeguard during periods of vacancy, providing a safety net for property managers if the reason for vacancy was due to a material damage claim.

Insurance Complexity

Perhaps the most crucial pain point is the complexity of commercial property insurance. It’s not just about selecting a policy – it’s about fully understanding its intricacies, the coverage provided, and the exceptions that apply. It’s about knowing exactly what you’re guarding against. A major oversight and misunderstood part of an insurance policy is the Natural Disaster excess. This excess is separate to the standard excess and is normally a percentage of the total building’s sum insured value. With over two thirds of New Zealand being classed in the medium to high risk categories for natural disaster events, getting this wrong could financially cripple your clients.

A specialised insurance advisor can demystify these complexities. They can guide property managers through the process, explaining policy specifics, the degrees of protection available, and tailor the best coverage to suit unique property needs. In essence, they ensure that property managers are equipped with the right protection against unexpected events.

Commercial property management in New Zealand is a challenging but rewarding role. By understanding these pain points and recognising the crucial role a comprehensive and tailored insurance policy plays, property managers can mitigate these challenges effectively. With the right insurance policy and advice, you can manage your commercial property with confidence and assurance.



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