Managing commercial properties yourself can save money but overlooking utility management during tenant transitions can result in delays, disruptions, and expensive power upgrades. This guide explains common pitfalls DIY property owners face and offers practical tips to avoid costly mistakes.
Why Electricity Supply Can Be Tricky When Tenants Change
A recent transaction we handled shows the risks:
- The previous tenant used 100 amps of power.
- When they vacated, the supply reverted to 60 amps automatically.
- A nearby building diverted available power elsewhere.
- The new tenant’s needs couldn’t be met without installing a transformer, costing $360,000.
This is a clear example of why early planning and proactive management are essential for property owners managing their own buildings.
Tips for DIY Property Owners
Plan Utility Transfers Before Tenants Move Out
Gaps in electricity supply are common when tenants leave.
What you can do:
- Require outgoing tenants to schedule account closures on their move-out date.
- Ensure incoming tenants set up their account to start on lease commencement.
- Work with your electricity provider to keep a temporary management account during vacancies.
This avoids service interruptions, reconnection fees, and tenant frustration.
Check Power Capacity Early
Some tenants may need more power than your property currently provides. Failing to assess this can result in expensive upgrades.
What you can do:
- Confirm your property’s existing power capacity.
- Discuss the tenant’s requirements before signing a lease.
- Explore solutions like load shedding, additional circuits, or planned upgrades in advance.
Maintain Clear Communication
Good communication with tenants and electricity providers can prevent most utility issues.
Tips for DIY owners:
- Include utility guidelines in your lease documents.
- Give tenants a checklist for moving in/out.
- Stay informed about local power distribution rules and availability.
Why Professional Property Management Can Save You Money
Even with careful planning, managing power supply, tenant transitions, and compliance can be time-consuming and risky. Property management experts can:
- Handle utility transfers seamlessly
- Ensure tenants meet their lease obligations
- Avoid unexpected costs or delays
- Maximise tenant satisfaction and retention
Instead of risking a $360,000 transformer scenario, consider letting a professional team manage these details for you.
Ready to Simplify Your Property Management?
If you’re currently managing your own commercial properties and want to avoid costly surprises, our team at Commercial Realty can help. We specialise in full-service property management, including utilities, tenant transitions, and lease compliance giving you peace of mind and freeing up your time.
Contact us today to learn how we can make managing your commercial properties effortless.
