As you consider your options for Australian property managers, you might find yourself questioning whether the property manager looking after your 3×2 residential villa is really that different from the commercial property manager running Perth’s tallest office tower.
With 24+ years of commercial property management under our sleeve, we’re here to tell you that the answer is yes: these two services can be a lot more different than you might expect, with distinctions that extend well beyond just their industries.
In this article, we provide a side-by-side comparison of commercial property management vs residential property management, highlighting the different skills, qualifications and responsibilities required for each. You’ll quickly understand why savvy investors often engage specialised property managers when diversifying their portfolios across both commercial and residential assets.
Commercial vs Residential Property Management
Similarities
Both commercial and residential property managers share several core responsibilities:
- Tenant management – finding tenants, handling agreements, renewals, and collecting rent.
- Property maintenance – conducting inspections and coordinating repairs.
- Compliance oversight – ensuring properties meet local regulations and legal requirements.
- Financial administration – managing financial records, income and expenses.
- Property condition documentation – maintaining detailed records for compliance purposes.
On paper, these services can appear to be very similar. However, their practical application differs significantly between commercial and residential settings.
Key Differences
Though both management types experience significant overlap in the services they offer, the way these services are provided differs substantially between property types. For each type of property management, we see significant differences in factors such as:
- Properties Managed
- Legal requirements
- Specialised knowledge
- Responsibility
- Scale & scope
- Urgency
Here is a further breakdown of how we see some of these key differences come up.
1. Properties Managed
Commercial property management is focused strictly on property which is intended, and used for, business & operating purposes. The three most common forms of commercial property management are:
Meanwhile, residential property management focuses exclusively on properties intended to be lived in, which captured many building types from single-resident households to complex multi-resident complexes. The most common types of properties managed in the residential sector include:
- Individual homes
- Apartment buildings
- Strata complexes and townhouses
- Condominiums
- Student housing
- Senior living communities
2. Maintenance Requirements
| Residential | Commercial | |
| Responsibilities | Landlords are responsible for most maintenance tasks, including maintaining working doors and windows. | Tenants often take responsibility for reasonable repairs and maintenance such as repairs to internal surfaces like floor coverings, doors, windows, equipment and fixtures. Responsibilities can fluctuate depending on the structure of the lease. |
| Priority | Landlord must respond within 24-28 hours for urgent repairs and 14 days for non-urgent repairs (as per the Residential Tenancies Act 1987 (WA)). | Commercial tenants in WA have no specific timeframes mandating timelines for repairs. |
| Scale & Complexity | Typically small-scale such as plumbing repairs and appliance servicing. | Heightened complexity, typically regarding complex systems like HVAC, elevators, and specialised infrastructure. |
| Legal Requirements | Residential property managers are bound by the Residential Tenancies Act 1987 (WA)), the Disability Discrimination Act 1992, and in strata buildings, specific rules governing common areas and responsibilities. | Maintenance schedules must ensure compliance with local building regulations including energy efficiency requirements, fire, gas and electrical safety standards. As well as asbestos management and disability accommodations. More information on these requirements can be found in our guide Investor’s Guide to Commercial Property Compliance in Australia. Outside of these requirement, legal obligations are typically outlined in individual tenant contracts. |
3. Tenant Relationships
| Residential | Commercial | |
| Responsibilities & Collaboration | Residential tenants have a low level of responsibility for repairing the property outside of expectations for damages and cleanliness. As a result, collaborative efforts with the property manager are limited. | Responsibilities are more evenly shared between landlord and tenants, which can lead to a higher-level of collaboration between the two parties. |
| Complexity | Tenant relationships focus on customer service and communication often consists of straightforward issues like rent payments, property use rules, and minor maintenance requests. | Often involves multiple stakeholders, such as business owners, employees, and facility managers, bringing added relationship complexity. |
4. Managing Paperwork & Contracts
| Residential | Commercial | |
| Complexity | Handle standardised tenancy agreements including lease agreements, renewal documents, and maintenance records. As roles and responsibilities are highly-regulated, the customisation of these documents is often minimal. | More complex leases with longer lease times, outlining specific terms and responsibilities of both parties including negotiations for base rent, operating expenses, and lease duration. |
| Negotiation | Complex negotiation typically not required due to standardised contracts. | Careful negotiation required, including editing and re-drafting of lease conditions. |
5. Qualifications
| Residential | Commercial | |
| Minimum Requirements | DMIRS (Department of Mines, Industry Regulation and Safety) registration WA Sales or Restricted Property Management Representative Registration. |
DMIRS (Department of Mines, Industry Regulation and Safety) registration WA Sales or Restricted Property Management Representative Registration. |
| Additional Education | Bachelor’s degree in property, real estate or business, commerce is not necessary but highly regarded. | Certification as a Commercial Property Manager with the Australian Property Institute (API) is common, requiring at least two years of full-time commercial property experience.
Bachelor’s degree in property, real estate or business, commerce is not necessary but highly regarded. Commercial property managers may also have specific industry-related qualifications e.g., retail or industrial industries. |
6. Knowledge
| Residential | Commercial | |
| Industry knowledge | Requires understanding of basic home maintenance and safety standards. | Requires understanding of various business sectors including knowledge of zoning laws, industry-specific business systems and operations. |
| Local knowledge | Familiarity with neighbourhood characteristics, lifestyles and features, such as local schools. Understanding of local real estate market trends. |
Familiar with industry movements within suburbs, tenant mixes and features such as easy highway access. Understanding of local commercial property trends. |
| Soft skills | Strong interpersonal skills for dealing with individual tenants, empathy, patience and conflict resolution. | Advanced negotiation skills for navigating complex agreements, ability to manage relationships with multiple stakeholders. |
Do You Need a Commercial Property Management Specialist?
Looking after commercial property demands specialist knowledge separate from residential property management expertise. The complexities of commercial management, including the detailed drafting and negotiating of commercial property leases, require dedicated professionals.
At Vast Commercial Property, we ensure that we bring the right level of expertise to every commercial property we manage. With over 24 years of combined Perth-specific expertise, our team has an intricate understanding of commercial property management in the office, retail and industrial sectors. As commercial property investors themselves, Vast Commercial Property experts Eddie and Greg intimately understand your commercial property priorities, offering tailored solutions rather than standardised templates.
With an unwavering focus on ROI optimisation, a comprehensive understanding of WA compliance standards, and exceptional negotiation skills, Eddie and Greg ensure your investment reaches its full income-generating potential.
For commercial property investors in Perth looking to get the most from their commercial properties, Vast Commercial Property is the easy choice.
