Services Offered By Facility Management and Property Management
Facility management is the management of communal buildings,estates which encompasses both building fabric and service. Facilities management accomplish that everything is available and operating properly, so the building occupants can start doing their work. This includes air conditioning, cleaning, decoration, lighting and security,monitoring and supervising devices, control and regulation systems, management and optimization mechanisms in buildings. Facilities Management is about managing risks within an organization, controlling costs and improving the levels of service within that organization. The services are sometimes divided into 'hard services' and 'soft services'. Hard services includes things such as the air conditioner is working properly and safely. Soft service includes cleaning of buildings and monitoring the performance electricians and builders. Facilities management is the integration of process within an organization to develop and maintain the agreed services which improve the effectiveness of its primary activities. Every day effective facilities management provides a safe and efficient working environment, which is essential to the performance of any business.Property management is the operation of commercial, industrial or other residential real estate. Once an investor decides to construct on his land, the management property organization takes care of his land and takes care of all the legal proceeding that are involved in the construction. The owner doesn't bother about knowing the legal intricacies personally. He trusts his assets managing firm to take care of the legal complications for him, though it is advisable for the owner to be aware of all the legal procedures. The managing firms have a list of architects and construction personnel with them and they arrange for them.Property management manage construction, maintenance, repair and development on a property. The relations with the tenants provides a buffer for those landlords desiring to distance themselves from their tenant constituency. It includes participating in or initiating litigation with tenants, contractors or agencies. Special attention is given to landlord/tenant low and non-payment, harassment, reduction of pre-arranged services and public nuisance. The property management are also responsible for taking care of mobile home parks, automobile storage areas and recreational facilities. The tasks that are involved in taking care of private assets, that involves maintaining and developing office premises, shopping malls and entertainment venues. The work is tougher and more elaborate than in the case of managing houses because places of public access need to be maintained in a top class condition as the business venues can attract a lot of clients only if they are very impressive to look at and be in.
Wednesday 31 December 2008
Friday 7 November 2008
Whats involved with property management
Does the property need frequent visits, repairs, or attention? If your rental property is a veritable money pit, you can find yourself spending more time there than at your regular job. If you're getting constant requests for repairs to a property, having someone who can devote the majority of their time to your property is very helpful. The more units you have, the more you can benefit from a professional maintenance worker or property management company.
What services do you need? If you're looking for a small amount of assistance, such as monthly rent collection, a full-service agency may be too much for your needs. Since you'll need to budget in the fees charged by a property management company, this will cut into your profit margin. Therefore, instead of hiring a full-service company, you may be better served by a part-time property manager or specialist who can handle the most frequent problems.
On the other hand, if you do need a complete solution, make sure that the company can provide you with all the services you require. For example, if you need someone who is capable of light maintenance work in addition to rent collection, keep this in mind while you shop for a property management company.
Is the company trustworthy and friendly? Before hiring a property management company, do thorough research to ensure that it is reputable. If you are an absentee landlord, this is extremely important. You will be relying on this company to collect rent and represent you and you interests. Check references and talk to other landlords who have worked with this company. Make sure the representative of the property management company is level-headed and diplomatic. Just one bad interaction between tenant and rent collector can destroy goodwill that can take years to restore.
Hiring a property management company should result in more free time and less worry for you. If you hire a property management company and find that you are still constantly worrying about your property, you may need to restructure your schedule to spend more time at the property, or have more frequent communication with the property management company.
What services do you need? If you're looking for a small amount of assistance, such as monthly rent collection, a full-service agency may be too much for your needs. Since you'll need to budget in the fees charged by a property management company, this will cut into your profit margin. Therefore, instead of hiring a full-service company, you may be better served by a part-time property manager or specialist who can handle the most frequent problems.
On the other hand, if you do need a complete solution, make sure that the company can provide you with all the services you require. For example, if you need someone who is capable of light maintenance work in addition to rent collection, keep this in mind while you shop for a property management company.
Is the company trustworthy and friendly? Before hiring a property management company, do thorough research to ensure that it is reputable. If you are an absentee landlord, this is extremely important. You will be relying on this company to collect rent and represent you and you interests. Check references and talk to other landlords who have worked with this company. Make sure the representative of the property management company is level-headed and diplomatic. Just one bad interaction between tenant and rent collector can destroy goodwill that can take years to restore.
Hiring a property management company should result in more free time and less worry for you. If you hire a property management company and find that you are still constantly worrying about your property, you may need to restructure your schedule to spend more time at the property, or have more frequent communication with the property management company.
Should I Hire a Property Management Company for My Rental Property?
Managing Risk
Turning over a facility to a management company is convenient and the benefits are plentiful. But one should keep in mind that handing over the keys means handing over responsibility—which means potential risk. Even the most experienced professionals err on occasion. Before hiring a management company, you want to know it is prepared and properly insured if an incident should occur.
When hiring a management company, treat the situation similarly to that of hiring a vendor. Have the company listed as an additional insured on your current business owner’s policy. Next, check to see if it has an adequate property-management errors and omissions (E&O) policy in force. This coverage is designed to protect property management companies if they fail to render the professional services contracted and also provides the owner assistance with defense costs associated with responding to lawsuits and investigations.
Request a certificate of insurance from the management company as evidence it is insured by a financially stable entity and carries appropriate amounts of insurance for the type of services performed. The certificate should have information on the insurer, insurance agency, types of insurance, policy numbers, effective dates, limits, certificate holders and any special provisions it may have. Check to see the policy limits are equal if not greater than your facility’s limits.
More About E&O
Here are a few reasons property-management E&O coverage works. Let’s say you bring in a management company and its contracted services include paying property taxes on your commercial building. The property manager fails to make these payments in a timely manner, and you, the property owner, are slapped with a fine and a penalty. Since the management company breached its contract by not paying on time, you would most likely make a claim with the company’s insurance company, requesting it pay the fine and penalty on your behalf.
What if you authorize a management company to have maintenance work done at your facility? Let’s say the cost of the project is $500,000, and the repair company is to be paid in increments of $100,000 as each stage is completed. However, your property manager advances money to the repair company prior to completion and neglects to identify the licensing, bonding and insurance company of the contractor.
The repair company leaves the work site prior to repairing several buildings and, because it wasn’t licensed or insured, you now have to hire and pay a new company to finish the work. You want to ensure your management company has the resources and insurance coverage to allow you to recover amounts improperly paid to the first repair company. It is never easy to point the finger and cast the blame when mishaps occur; however, when everyone involved has proper insurance coverage, the end result is less costly all around.
Turning over a facility to a management company is convenient and the benefits are plentiful. But one should keep in mind that handing over the keys means handing over responsibility—which means potential risk. Even the most experienced professionals err on occasion. Before hiring a management company, you want to know it is prepared and properly insured if an incident should occur.
When hiring a management company, treat the situation similarly to that of hiring a vendor. Have the company listed as an additional insured on your current business owner’s policy. Next, check to see if it has an adequate property-management errors and omissions (E&O) policy in force. This coverage is designed to protect property management companies if they fail to render the professional services contracted and also provides the owner assistance with defense costs associated with responding to lawsuits and investigations.
Request a certificate of insurance from the management company as evidence it is insured by a financially stable entity and carries appropriate amounts of insurance for the type of services performed. The certificate should have information on the insurer, insurance agency, types of insurance, policy numbers, effective dates, limits, certificate holders and any special provisions it may have. Check to see the policy limits are equal if not greater than your facility’s limits.
More About E&O
Here are a few reasons property-management E&O coverage works. Let’s say you bring in a management company and its contracted services include paying property taxes on your commercial building. The property manager fails to make these payments in a timely manner, and you, the property owner, are slapped with a fine and a penalty. Since the management company breached its contract by not paying on time, you would most likely make a claim with the company’s insurance company, requesting it pay the fine and penalty on your behalf.
What if you authorize a management company to have maintenance work done at your facility? Let’s say the cost of the project is $500,000, and the repair company is to be paid in increments of $100,000 as each stage is completed. However, your property manager advances money to the repair company prior to completion and neglects to identify the licensing, bonding and insurance company of the contractor.
The repair company leaves the work site prior to repairing several buildings and, because it wasn’t licensed or insured, you now have to hire and pay a new company to finish the work. You want to ensure your management company has the resources and insurance coverage to allow you to recover amounts improperly paid to the first repair company. It is never easy to point the finger and cast the blame when mishaps occur; however, when everyone involved has proper insurance coverage, the end result is less costly all around.
Managing Risk
Managing Risk
Turning over a facility to a management company is convenient and the benefits are plentiful. But one should keep in mind that handing over the keys means handing over responsibility—which means potential risk. Even the most experienced professionals err on occasion. Before hiring a management company, you want to know it is prepared and properly insured if an incident should occur.
When hiring a management company, treat the situation similarly to that of hiring a vendor. Have the company listed as an additional insured on your current business owner’s policy. Next, check to see if it has an adequate property-management errors and omissions (E&O) policy in force. This coverage is designed to protect property management companies if they fail to render the professional services contracted and also provides the owner assistance with defense costs associated with responding to lawsuits and investigations.
Request a certificate of insurance from the management company as evidence it is insured by a financially stable entity and carries appropriate amounts of insurance for the type of services performed. The certificate should have information on the insurer, insurance agency, types of insurance, policy numbers, effective dates, limits, certificate holders and any special provisions it may have. Check to see the policy limits are equal if not greater than your facility’s limits.
More About E&O
Here are a few reasons property-management E&O coverage works. Let’s say you bring in a management company and its contracted services include paying property taxes on your commercial building. The property manager fails to make these payments in a timely manner, and you, the property owner, are slapped with a fine and a penalty. Since the management company breached its contract by not paying on time, you would most likely make a claim with the company’s insurance company, requesting it pay the fine and penalty on your behalf.
What if you authorize a management company to have maintenance work done at your facility? Let’s say the cost of the project is $500,000, and the repair company is to be paid in increments of $100,000 as each stage is completed. However, your property manager advances money to the repair company prior to completion and neglects to identify the licensing, bonding and insurance company of the contractor.
The repair company leaves the work site prior to repairing several buildings and, because it wasn’t licensed or insured, you now have to hire and pay a new company to finish the work. You want to ensure your management company has the resources and insurance coverage to allow you to recover amounts improperly paid to the first repair company. It is never easy to point the finger and cast the blame when mishaps occur; however, when everyone involved has proper insurance coverage, the end result is less costly all around.
Turning over a facility to a management company is convenient and the benefits are plentiful. But one should keep in mind that handing over the keys means handing over responsibility—which means potential risk. Even the most experienced professionals err on occasion. Before hiring a management company, you want to know it is prepared and properly insured if an incident should occur.
When hiring a management company, treat the situation similarly to that of hiring a vendor. Have the company listed as an additional insured on your current business owner’s policy. Next, check to see if it has an adequate property-management errors and omissions (E&O) policy in force. This coverage is designed to protect property management companies if they fail to render the professional services contracted and also provides the owner assistance with defense costs associated with responding to lawsuits and investigations.
Request a certificate of insurance from the management company as evidence it is insured by a financially stable entity and carries appropriate amounts of insurance for the type of services performed. The certificate should have information on the insurer, insurance agency, types of insurance, policy numbers, effective dates, limits, certificate holders and any special provisions it may have. Check to see the policy limits are equal if not greater than your facility’s limits.
More About E&O
Here are a few reasons property-management E&O coverage works. Let’s say you bring in a management company and its contracted services include paying property taxes on your commercial building. The property manager fails to make these payments in a timely manner, and you, the property owner, are slapped with a fine and a penalty. Since the management company breached its contract by not paying on time, you would most likely make a claim with the company’s insurance company, requesting it pay the fine and penalty on your behalf.
What if you authorize a management company to have maintenance work done at your facility? Let’s say the cost of the project is $500,000, and the repair company is to be paid in increments of $100,000 as each stage is completed. However, your property manager advances money to the repair company prior to completion and neglects to identify the licensing, bonding and insurance company of the contractor.
The repair company leaves the work site prior to repairing several buildings and, because it wasn’t licensed or insured, you now have to hire and pay a new company to finish the work. You want to ensure your management company has the resources and insurance coverage to allow you to recover amounts improperly paid to the first repair company. It is never easy to point the finger and cast the blame when mishaps occur; however, when everyone involved has proper insurance coverage, the end result is less costly all around.
Why a property management company ?
Why a Management Company?
Some owners who have owned and operated for years seek out management companies because having someone else run their facilities eases the strain of having to be on site every day. If they are close to retirement but not quite ready to sell their business, they can hire a management company to take over the day-to-day operations while leaving them time to relax, travel and start new projects. Other owners partner with management companies when their business is ready to expand to multiple locations. The work involved with acquisition and construction of new sites requires focus. Having the freedom to be away from a facility gives them the time they need.
If a facility has hit a standstill or the business is underperforming, seeking the expertise of a management company can benefit an owner’s bottom line. Most of these companies are run by seasoned industry professionals. Who better to hire and train a new staff?
Their status and training usually attracts higher quality employees, providing tenants the quality customer service they deserve. Management companies offer exceptional marketing strategies and know how to use appropriate mediums, such as signage and brochures, to increase visibility to prospects. They usually have connections to secure discounted advertising rates with print media as well, such as the Yellow Pages
Some owners who have owned and operated for years seek out management companies because having someone else run their facilities eases the strain of having to be on site every day. If they are close to retirement but not quite ready to sell their business, they can hire a management company to take over the day-to-day operations while leaving them time to relax, travel and start new projects. Other owners partner with management companies when their business is ready to expand to multiple locations. The work involved with acquisition and construction of new sites requires focus. Having the freedom to be away from a facility gives them the time they need.
If a facility has hit a standstill or the business is underperforming, seeking the expertise of a management company can benefit an owner’s bottom line. Most of these companies are run by seasoned industry professionals. Who better to hire and train a new staff?
Their status and training usually attracts higher quality employees, providing tenants the quality customer service they deserve. Management companies offer exceptional marketing strategies and know how to use appropriate mediums, such as signage and brochures, to increase visibility to prospects. They usually have connections to secure discounted advertising rates with print media as well, such as the Yellow Pages
Property management softwear selection
Managing assets given on lease can be quite a cumbersome task. Hence rental property management firms are taking the assistance of software for getting along with their work efficiently. There are many types of software available in the market today. Thus there are certain factors that an assets management firm should consider before selecting suitable software.
• Feature enriched software are abounding the markets today. The managing assets firm should not be carried away by the number or the power of the features. Rather they should see if the features are actually being of any use to them. The rental property management firm should choose software that has got a lot of features useful for the assets managing firm.
• The assets managing firm should consider the hardware and software configuration of its automated systems before selecting software because many of the software are platform dependent. Many firms usually spend huge amounts of money in buying software that does not actually run on their machines. It is always better to buy software compatible with the existing hardware and software configuration than to upgrade the configuration to suit a particular type of software unless it is absolutely inevitable.
• The software that a rental property management firm chooses should have the capacity to maintain huge databases of client details. Hence the assets managing professional should have an idea of the amount of data that he is going to enter into the automated database. For this, he can take the advice of both the assets managing as well as the automation experts. It is no use taking software that has limited capability.
• It is always better to take software that can support a large number of users simultaneously. The automated system will be accessed by not only the management professionals, but by the owners and the tenants as well. Hence there will be a huge traffic accessing the networked sites. Most of the functionality is interconnected. The software chosen should be efficient and fast in yielding results.
• The data entry, management and retrieval processes should be user friendly. The owners and the tenants who operate these systems may not be computer savvy. Hence simple procedures are going to be understood easily. Otherwise, these people who are not comfortable with the online applications might turn away from the rental property management firm that uses such a complicated system. After all, people do not have the time to spend on process that they do not understand as there are many competing firms offering a very convenient automated ambiance.
• The software selected should handle details of a lot of tenancy processes well. Software that offers advanced features like, late payment recording and calculation of the associated penalty should be selected. The software programs should work on the same kind of logic that you understand and yield the expected criterion that you are looking for. For example, if you are interested in calculating the penalty that the defaulters have to pay after a six months period, the software that you choose should have a feature to calculate that. By having functionality for calculating the monthly defaulted amount only, the rental property management professional has to put the extra effort of making separate calculations which might prove to be quite burdensome and time taking when it comes to calculating for thousands of people.
• Feature enriched software are abounding the markets today. The managing assets firm should not be carried away by the number or the power of the features. Rather they should see if the features are actually being of any use to them. The rental property management firm should choose software that has got a lot of features useful for the assets managing firm.
• The assets managing firm should consider the hardware and software configuration of its automated systems before selecting software because many of the software are platform dependent. Many firms usually spend huge amounts of money in buying software that does not actually run on their machines. It is always better to buy software compatible with the existing hardware and software configuration than to upgrade the configuration to suit a particular type of software unless it is absolutely inevitable.
• The software that a rental property management firm chooses should have the capacity to maintain huge databases of client details. Hence the assets managing professional should have an idea of the amount of data that he is going to enter into the automated database. For this, he can take the advice of both the assets managing as well as the automation experts. It is no use taking software that has limited capability.
• It is always better to take software that can support a large number of users simultaneously. The automated system will be accessed by not only the management professionals, but by the owners and the tenants as well. Hence there will be a huge traffic accessing the networked sites. Most of the functionality is interconnected. The software chosen should be efficient and fast in yielding results.
• The data entry, management and retrieval processes should be user friendly. The owners and the tenants who operate these systems may not be computer savvy. Hence simple procedures are going to be understood easily. Otherwise, these people who are not comfortable with the online applications might turn away from the rental property management firm that uses such a complicated system. After all, people do not have the time to spend on process that they do not understand as there are many competing firms offering a very convenient automated ambiance.
• The software selected should handle details of a lot of tenancy processes well. Software that offers advanced features like, late payment recording and calculation of the associated penalty should be selected. The software programs should work on the same kind of logic that you understand and yield the expected criterion that you are looking for. For example, if you are interested in calculating the penalty that the defaulters have to pay after a six months period, the software that you choose should have a feature to calculate that. By having functionality for calculating the monthly defaulted amount only, the rental property management professional has to put the extra effort of making separate calculations which might prove to be quite burdensome and time taking when it comes to calculating for thousands of people.
Steps to property management
Investment in land or assets for personal or business purposes can be profitable only when the asset yields good revenue. For that, the owner needs to maintain his assets in a top condition. But the owner might be busy elsewhere or he might not have the correct knowledge to maintain his assets well. Hence it is always advisable to take professional help. There are many property management companies in the market today. There are certain guidelines for the investors to follow before choosing a property management firm.
These are
• One should always prefer to select well established assets managing firms as they will already be acquainted with the local market. They will know the market value of a given asset and how much it can be sold or leased out for. These firms will be acquainted with the tenant mindset and hence are in the best position to advise the owner about the ways to enhance the value of a given asset in the eyes of a tenant. They will also be able to identify prospective tenants in a given area and will work towards attracting them. The established property management companies will also be well acquainted with the existing competition in a given area and new investors can take tips from them on how to tackle competition.
• Before finalizing the contract with an assets firm it is always recommended to meet the assets managing professionals face to face and layout a systematic method of managing the asset. The maintenance needs of properties are different for each asset. It depends on the physical characteristics of the asset, the intended purpose of its use and the amount of money the owner is willing to spend on its maintenance activities. Having a face to face interaction and discussing about how the asset is going to be taken care of can greatly help in establishing a smooth rapport between the property management companies and the owners.
• The owner should always try to take the feedback of the firm he wants to entrust the job of taking care of his asset. This he can do best by collecting information of the quality of services they provide from their existing clients. He can also read reviews of the firm in popular media and decide for himself whether he has the confidence that a given firm will take care of his assets well. Taking feedback from sources other than the representatives of the firm itself will give a clear picture about the positive and negative aspect of the property management companies that are under the purview of the owner.
• The owners should take the services of those firms that are committed hundred percent to their clients. The assets managing personnel should be honest in their dealings with the owners and not mislead them about any thing in their tenure. For example some assets managing professionals keep advising the owners to replace old parts like doors or pipelines etc. with minor defects. Usually rectifying the minor snag is enough but the assets managing team of the property management companies might ask for replacing it instead because the parts replacement firms promise to give them a percentage of their profits if they get deals for them.
Keeping these points in view will ensure the owner of a property some satisfaction from the firm that he is entrusting his assets with, at least at the beginning
These are
• One should always prefer to select well established assets managing firms as they will already be acquainted with the local market. They will know the market value of a given asset and how much it can be sold or leased out for. These firms will be acquainted with the tenant mindset and hence are in the best position to advise the owner about the ways to enhance the value of a given asset in the eyes of a tenant. They will also be able to identify prospective tenants in a given area and will work towards attracting them. The established property management companies will also be well acquainted with the existing competition in a given area and new investors can take tips from them on how to tackle competition.
• Before finalizing the contract with an assets firm it is always recommended to meet the assets managing professionals face to face and layout a systematic method of managing the asset. The maintenance needs of properties are different for each asset. It depends on the physical characteristics of the asset, the intended purpose of its use and the amount of money the owner is willing to spend on its maintenance activities. Having a face to face interaction and discussing about how the asset is going to be taken care of can greatly help in establishing a smooth rapport between the property management companies and the owners.
• The owner should always try to take the feedback of the firm he wants to entrust the job of taking care of his asset. This he can do best by collecting information of the quality of services they provide from their existing clients. He can also read reviews of the firm in popular media and decide for himself whether he has the confidence that a given firm will take care of his assets well. Taking feedback from sources other than the representatives of the firm itself will give a clear picture about the positive and negative aspect of the property management companies that are under the purview of the owner.
• The owners should take the services of those firms that are committed hundred percent to their clients. The assets managing personnel should be honest in their dealings with the owners and not mislead them about any thing in their tenure. For example some assets managing professionals keep advising the owners to replace old parts like doors or pipelines etc. with minor defects. Usually rectifying the minor snag is enough but the assets managing team of the property management companies might ask for replacing it instead because the parts replacement firms promise to give them a percentage of their profits if they get deals for them.
Keeping these points in view will ensure the owner of a property some satisfaction from the firm that he is entrusting his assets with, at least at the beginning
Property maintenance during crisis
Apartment Maintenance is very vital for keeping an asset clean and hygienic, and keeping it in an impressive form. Maintaining an asset is not an easy job. It is a task that takes a lot of time and expertise. Hence, it is better to delegate the responsibility to professional maintainers. But it is commonly seen that the owners of the assets do not manage to get work that is hundred percent satisfactory from the professional maintainers. Here are some useful tips that are easy to implement, and by following which one can manage to get his maintenance work done efficiently:
• The first thing that the owner of the asset should do is to get the asset insured for damage. It will help him in making huge savings while getting the damaged parts repaired.
• In the event of any damage it is always better for the owner to take some preliminary steps to prevent further damage till the arrival of the apartment maintenance staff. Even though the owner is paying the professionals for their work it is not a good idea to leave the house unattended till they arrive as that can prove to be quite dangerous. For example, if some window panes break, it is always better to remove the glass pieces of the broken window pane so that there is no risk of people injuring themselves by accidentally treading on them. The professional maintainers can take up from the point of fixing a new pane.
Apart from the safety issues, by personally attending to some of the tasks associated with the repairing process, the owner can save himself money. The apartment maintenance staff is known to charge higher fees for attending to houses that are in a really bad shape at the time of their arrival. But on the other hand, a person should involve himself in handling the crisis situation only if he has some knowledge about how to handle it, as a crisis situation is least suited for any action that is based on the trial and error method of finding remedies.
• For ensuring a prompt response from the professional maintainers it is always better to clearly communicate the situation to them and tell them exactly what is required of them. The apartment maintenance staff comprises of very busy people and it is better for the owner of the asset to go straight into the subject without any unnecessary detailing.
One should proceed in a methodical manner while giving out the information to the professional maintainers. The owner should start with describing the problem. There is no necessity to describe who has done it as that is irrelevant information to the professional maintainers.
The next thing is to state the duration of the problem as that will give an idea of the degree of damage it could have done, to the professional maintainer. After this the owner can proceed to describe how the problem arose and what he had done to rectify the situation.
• Sometimes, being novices, people tend to make blunders in while handling the crisis. It is always better to frankly tell the apartment maintenance staff about the mistakes done so that they come prepared with the proper solution to the problem. Hiding facts from the professional maintainers for saving oneself embarrassment is not a very good idea as that might lead to the aggravation of the situation due to wrong treatment.
• The first thing that the owner of the asset should do is to get the asset insured for damage. It will help him in making huge savings while getting the damaged parts repaired.
• In the event of any damage it is always better for the owner to take some preliminary steps to prevent further damage till the arrival of the apartment maintenance staff. Even though the owner is paying the professionals for their work it is not a good idea to leave the house unattended till they arrive as that can prove to be quite dangerous. For example, if some window panes break, it is always better to remove the glass pieces of the broken window pane so that there is no risk of people injuring themselves by accidentally treading on them. The professional maintainers can take up from the point of fixing a new pane.
Apart from the safety issues, by personally attending to some of the tasks associated with the repairing process, the owner can save himself money. The apartment maintenance staff is known to charge higher fees for attending to houses that are in a really bad shape at the time of their arrival. But on the other hand, a person should involve himself in handling the crisis situation only if he has some knowledge about how to handle it, as a crisis situation is least suited for any action that is based on the trial and error method of finding remedies.
• For ensuring a prompt response from the professional maintainers it is always better to clearly communicate the situation to them and tell them exactly what is required of them. The apartment maintenance staff comprises of very busy people and it is better for the owner of the asset to go straight into the subject without any unnecessary detailing.
One should proceed in a methodical manner while giving out the information to the professional maintainers. The owner should start with describing the problem. There is no necessity to describe who has done it as that is irrelevant information to the professional maintainers.
The next thing is to state the duration of the problem as that will give an idea of the degree of damage it could have done, to the professional maintainer. After this the owner can proceed to describe how the problem arose and what he had done to rectify the situation.
• Sometimes, being novices, people tend to make blunders in while handling the crisis. It is always better to frankly tell the apartment maintenance staff about the mistakes done so that they come prepared with the proper solution to the problem. Hiding facts from the professional maintainers for saving oneself embarrassment is not a very good idea as that might lead to the aggravation of the situation due to wrong treatment.
How property managers get paid
When shopping around for a property manager, it's a good idea to understand how they are going to be paid from you hiring them. As you interview various property managers, it's important to remember that fees vary widely.
Property managers are paid for tenant placement, ongoing management or both. If you don't mind the month to month responsibilities of managing your properties, but don't have the time, energy, or know-how to fill vacancies, you can hire a management company to just do tenant placement for you. Fees for this vary - typically, they are the full first month's rent, but they can be as low as 1/2 to 2/3 of this amount. This relatively large payment typically covers the marketing, advertising, and showing of the property, as well as the prescreening of tenants and handling of tenant applications.
If you hire the property management company to manage your property on an on-going basis, they may charge you nothing for tenant placement, only an ongoing monthly fee (typically 8-10% of rent collected). Others will charge you the full amount, or will give you a slightly discounted rate.
Most property managers also collect a fee for lease renewal. This may be a percentage of the monthly rent, or it could be a flat fee of one-hundred to several hundred dollars. A good property manager will reevaluate your property and current market rents and may initiate a rental increase at this time. They should also inspect the property and obviously have a new lease signed and on file.
Another way that property managers are paid, which doesn't directly come out of your pocket, is from late fees. You may be able to negotiate that these fees be paid to you with their standard percentage deducted, but many property managers will keep the entire amount of these fees. Very stiff late fees are good motivation for your tenants to pay on-time, every month, and should help you to get paid quickly (if the tenant intends to pay and does not require an eviction to be initiated).
In my opinion, a good property management company's fees should be very transparent. There shouldn't be any additional charges besides what I have already outlined, but that doesn't mean that some companies won't charge certain administrative fees. Be sure to ask about any other fees when you hire a property manager to avoid having all of your cash flow eaten up by surprise.
Also, remember, just because a company charges 8% a month and no tenant placement fee, it doesn't necessarily mean that they will be your best choice. Whatever the fees, make sure that you can be confident that your property manager is well organized, will deliver prompt service to you and your tenants, will follow through with inspecting the property, renewing leases, posting three day notices, using the most cost effective maintenance companies for repairs, etc. You want to be confident that your property manager will keep you up-to-date on the status of your property and won't cost you money by being lax with late-paying tenants. So, provided their fees aren't totally unreasonable, or significantly higher than everyone else's, I recommend going with the manager who you believe will do the best job, because having an efficient, well organized manager could save you a lot of money in the long run.
Remember, these are generalizations, the property managers in your area may charge different fees for slightly different services. Always ask about any extra fees that may come up and never forget that all of these things are negotiable!
Property managers are paid for tenant placement, ongoing management or both. If you don't mind the month to month responsibilities of managing your properties, but don't have the time, energy, or know-how to fill vacancies, you can hire a management company to just do tenant placement for you. Fees for this vary - typically, they are the full first month's rent, but they can be as low as 1/2 to 2/3 of this amount. This relatively large payment typically covers the marketing, advertising, and showing of the property, as well as the prescreening of tenants and handling of tenant applications.
If you hire the property management company to manage your property on an on-going basis, they may charge you nothing for tenant placement, only an ongoing monthly fee (typically 8-10% of rent collected). Others will charge you the full amount, or will give you a slightly discounted rate.
Most property managers also collect a fee for lease renewal. This may be a percentage of the monthly rent, or it could be a flat fee of one-hundred to several hundred dollars. A good property manager will reevaluate your property and current market rents and may initiate a rental increase at this time. They should also inspect the property and obviously have a new lease signed and on file.
Another way that property managers are paid, which doesn't directly come out of your pocket, is from late fees. You may be able to negotiate that these fees be paid to you with their standard percentage deducted, but many property managers will keep the entire amount of these fees. Very stiff late fees are good motivation for your tenants to pay on-time, every month, and should help you to get paid quickly (if the tenant intends to pay and does not require an eviction to be initiated).
In my opinion, a good property management company's fees should be very transparent. There shouldn't be any additional charges besides what I have already outlined, but that doesn't mean that some companies won't charge certain administrative fees. Be sure to ask about any other fees when you hire a property manager to avoid having all of your cash flow eaten up by surprise.
Also, remember, just because a company charges 8% a month and no tenant placement fee, it doesn't necessarily mean that they will be your best choice. Whatever the fees, make sure that you can be confident that your property manager is well organized, will deliver prompt service to you and your tenants, will follow through with inspecting the property, renewing leases, posting three day notices, using the most cost effective maintenance companies for repairs, etc. You want to be confident that your property manager will keep you up-to-date on the status of your property and won't cost you money by being lax with late-paying tenants. So, provided their fees aren't totally unreasonable, or significantly higher than everyone else's, I recommend going with the manager who you believe will do the best job, because having an efficient, well organized manager could save you a lot of money in the long run.
Remember, these are generalizations, the property managers in your area may charge different fees for slightly different services. Always ask about any extra fees that may come up and never forget that all of these things are negotiable!
Managing a property manager
I've written a lot about the importance of taking the time up front to prescreen your property manager to find one who has good follow through skills. That they possess adequate knowledge, of course is a prerequisite, but I emphasize that you really try to get a feel for how they run their business. Why? Because once you hire them, you really don't want to have to manage them.
To a certain extent, you will be "managing" your property manager, but this activity should be limited to the following:
First, when you've just hired a new property manager. Your new property manager requires a little more attention from you to make sure that he or she is really the right person for the job. It just makes sense that you need to pay close attention in the beginning to make sure that they are getting the job done right. Now, "in the beginning" can be a little misleading, because, things may start off fine, and go smoothly for quite a while, but the real test may not come until the first non-payment or eviction comes up. When it comes time for the property manager to enforce the lease, you want to know that they are fair, yet firm. Your property manager should not be delaying evictions because they believe a tenant's promise that they will pay in a week, etc.
Second, you will have occasional opportunities to check in with your property manager when certain things come up. For example, if you get a notice from the city about a violation on your property, you need to update your property manager about it so that they can take care of it. This is also a good chance to check in and see how things are going. You can ask about rental increases for upcoming lease renewals, questions about recent statements, inquiries on maintenance to be done/that's been done, or about certain tenants who've been a problem in the past.
What you should not have to do is tell your property manager to start the eviction process for someone who is not paying rent. They should already be on it! You should not have to call your property manager every month to find out what is going on with your properties - they should be sending you timely statements on all of your properties and should communicate via email, telephone, fax or mail, regular updates on any non-paying tenants (regarding where they are in the eviction process or if they are one a payment plan, etc.). Lastly, your property manager should always be available to call you back within a reasonable amount of time. There is nothing more frustrating then having to chase down the person who is supposed to be working for you!
James Orr is a professional real estate investor, marketing expert and founder of the Learn To Be Rich™ on-line investment game. His latest project is a large-scale online reference manual for real estate investors. Check out this page of the Real Estate Investor Cookbook to find a list of questions that we use to interview property managers: Hire A Great Property Manager.
To a certain extent, you will be "managing" your property manager, but this activity should be limited to the following:
First, when you've just hired a new property manager. Your new property manager requires a little more attention from you to make sure that he or she is really the right person for the job. It just makes sense that you need to pay close attention in the beginning to make sure that they are getting the job done right. Now, "in the beginning" can be a little misleading, because, things may start off fine, and go smoothly for quite a while, but the real test may not come until the first non-payment or eviction comes up. When it comes time for the property manager to enforce the lease, you want to know that they are fair, yet firm. Your property manager should not be delaying evictions because they believe a tenant's promise that they will pay in a week, etc.
Second, you will have occasional opportunities to check in with your property manager when certain things come up. For example, if you get a notice from the city about a violation on your property, you need to update your property manager about it so that they can take care of it. This is also a good chance to check in and see how things are going. You can ask about rental increases for upcoming lease renewals, questions about recent statements, inquiries on maintenance to be done/that's been done, or about certain tenants who've been a problem in the past.
What you should not have to do is tell your property manager to start the eviction process for someone who is not paying rent. They should already be on it! You should not have to call your property manager every month to find out what is going on with your properties - they should be sending you timely statements on all of your properties and should communicate via email, telephone, fax or mail, regular updates on any non-paying tenants (regarding where they are in the eviction process or if they are one a payment plan, etc.). Lastly, your property manager should always be available to call you back within a reasonable amount of time. There is nothing more frustrating then having to chase down the person who is supposed to be working for you!
James Orr is a professional real estate investor, marketing expert and founder of the Learn To Be Rich™ on-line investment game. His latest project is a large-scale online reference manual for real estate investors. Check out this page of the Real Estate Investor Cookbook to find a list of questions that we use to interview property managers: Hire A Great Property Manager.
What to look out for/Property Management
With so much riding on selecting the right property management company, choosing the right one can be a difficult decision. This choice only becomes more complicated with the large numbers of companies out there all fighting to look after your property. You can take all the proper steps during the selection process, but if you fail to notice the signs of a bad company, it isn't going to help.
Hesitating Or Avoiding Experience Or References
When interviewing a property management company, one of the most important steps is collecting references to get an idea of how that business actually works. Ask for references from a few different levels to get a look at the entire picture. If the apartment manager is uncomfortable, delays the process, or refuses to provide them, you might want to consider your alternatives. After all, if there is nothing to be concerned about, there shouldn't be a problem providing them. This also gives you a chance to see how organized they are since most places will have these on hand and ready to go.
Failing To Provide Education And Experience
Asking an apartment manager for a list of degrees isn't going to be fruitful. Any good property management company will be able to provide with information on how they have become knowledgeable in the area of real estate. What do they do to keep up on the changing demands of the industry? Finally, find out how much experience they have and in what area of the market that experience is in. Large complexes require a different set of requirements from several detached houses and their experience should reflect that.
Poor Customer Service
If the business cannot provide you with personal and top-notch customer service, chances are you and your tenant will continue to be treated in the same manner. Deal with real estate professionals that are not afraid to take time to understand you and the goals you would like to achieve. They need to return your calls and provide you with the information you need within a reasonable amount of time.
Dealing with problems is another area to explore when choosing a professional apartment manager. Things are bound to happen eventually. While it shouldn't be a common occurrence, you want to be more concerned with how these problems are dealt with rather just what the problem is. They should have a plan in place for dealing with issues and concerns, but there should also be a plan in place to help prevent the mistake from reoccurring in the future.
The knowledge base, problem solving, and conduct of a property management company is vital to a successful partnership. Other topics to consider as well include the final total the apartment manager will charge, the quality of the paperwork, and the limitations and requirements they have in place. The extra time invested now will inevitably save time later on and put more money into your pocket.
Hesitating Or Avoiding Experience Or References
When interviewing a property management company, one of the most important steps is collecting references to get an idea of how that business actually works. Ask for references from a few different levels to get a look at the entire picture. If the apartment manager is uncomfortable, delays the process, or refuses to provide them, you might want to consider your alternatives. After all, if there is nothing to be concerned about, there shouldn't be a problem providing them. This also gives you a chance to see how organized they are since most places will have these on hand and ready to go.
Failing To Provide Education And Experience
Asking an apartment manager for a list of degrees isn't going to be fruitful. Any good property management company will be able to provide with information on how they have become knowledgeable in the area of real estate. What do they do to keep up on the changing demands of the industry? Finally, find out how much experience they have and in what area of the market that experience is in. Large complexes require a different set of requirements from several detached houses and their experience should reflect that.
Poor Customer Service
If the business cannot provide you with personal and top-notch customer service, chances are you and your tenant will continue to be treated in the same manner. Deal with real estate professionals that are not afraid to take time to understand you and the goals you would like to achieve. They need to return your calls and provide you with the information you need within a reasonable amount of time.
Dealing with problems is another area to explore when choosing a professional apartment manager. Things are bound to happen eventually. While it shouldn't be a common occurrence, you want to be more concerned with how these problems are dealt with rather just what the problem is. They should have a plan in place for dealing with issues and concerns, but there should also be a plan in place to help prevent the mistake from reoccurring in the future.
The knowledge base, problem solving, and conduct of a property management company is vital to a successful partnership. Other topics to consider as well include the final total the apartment manager will charge, the quality of the paperwork, and the limitations and requirements they have in place. The extra time invested now will inevitably save time later on and put more money into your pocket.
Property Management
If you have renovated a real estate rental and just can't seem to attract the right tenants to make the unit as profitable as it should be, go out, drive around the block, and take a fresh look at the yard and the first impression the house or apartment complex gives you. If you can't get the rent you need to meet the goals set for the property, management may want to consider making a small investment in landscaping. After all, you can make a unit sound like Park Place, but your ideal renters will sum up the quality of place the instant they approach the property.
Goals
The first thing property management for a real estate rental will want to consider is what is detracting from the unit's appeal. Old straggly bushes, a fence in need of paint, or an unwelcoming walkway can make even the nicest home appear poorly maintained. Look at the surrounding homes and see what the realty manager has done to make their areas look great. It is always good to stay with the particular charm and style of the neighborhood, but select colors and ideals that will make your unit stand out.
Making Changes
Consider your color choices carefully and select paint and vegetation that stands out without shocking everyone who walks by. Warm tones are often a favorite. From there, select vegetation that will add texture and shape to the yard while giving the area some life. Flowering bushes are great to border the property along with filler perennials featuring coordinating blooms. Don't forget to look at the front door and repaint it or replace it if you need to.
Look at elements like the walkway. If you have very little distance to the street, use interesting stones or cement. For units that are back farther from the street, consider cutting interesting shapes rather than keeping traditional straight paths. You might even want to paint it with a faux rock coating to freshen it up a bit. Finally, adding simple accents, such as old-fashioned street lamps or large planters, can complete the look.
Save Time And Money
Some property management professionals do a great job at landscaping a unit. However, the money and time spent on upkeep can make it extremely expensive and almost impossible to get any return on your investment. When adding curb appeal to your real estate rental, select low maintenance vegetation and materials. It is also important to purchase solutions that match the weather in your area. These could include drought resistant plants to eliminate watering, perennials to prevent yearly planting, and mulch or fillers to prevent weeds. For an apartment complex, consider adding trees to block the sun in the summer, but let it shine through during the winter. This will keep your utilities down as well.
It only takes seconds for potential tenants to form an opinion about your real estate rental, so make sure it is a positive and inviting one. With a little bit of tweaking in the yard, property management will have an easier time renting the unit and will be able to collect a rent payment that meets your profit goals.
Goals
The first thing property management for a real estate rental will want to consider is what is detracting from the unit's appeal. Old straggly bushes, a fence in need of paint, or an unwelcoming walkway can make even the nicest home appear poorly maintained. Look at the surrounding homes and see what the realty manager has done to make their areas look great. It is always good to stay with the particular charm and style of the neighborhood, but select colors and ideals that will make your unit stand out.
Making Changes
Consider your color choices carefully and select paint and vegetation that stands out without shocking everyone who walks by. Warm tones are often a favorite. From there, select vegetation that will add texture and shape to the yard while giving the area some life. Flowering bushes are great to border the property along with filler perennials featuring coordinating blooms. Don't forget to look at the front door and repaint it or replace it if you need to.
Look at elements like the walkway. If you have very little distance to the street, use interesting stones or cement. For units that are back farther from the street, consider cutting interesting shapes rather than keeping traditional straight paths. You might even want to paint it with a faux rock coating to freshen it up a bit. Finally, adding simple accents, such as old-fashioned street lamps or large planters, can complete the look.
Save Time And Money
Some property management professionals do a great job at landscaping a unit. However, the money and time spent on upkeep can make it extremely expensive and almost impossible to get any return on your investment. When adding curb appeal to your real estate rental, select low maintenance vegetation and materials. It is also important to purchase solutions that match the weather in your area. These could include drought resistant plants to eliminate watering, perennials to prevent yearly planting, and mulch or fillers to prevent weeds. For an apartment complex, consider adding trees to block the sun in the summer, but let it shine through during the winter. This will keep your utilities down as well.
It only takes seconds for potential tenants to form an opinion about your real estate rental, so make sure it is a positive and inviting one. With a little bit of tweaking in the yard, property management will have an easier time renting the unit and will be able to collect a rent payment that meets your profit goals.
The value of time-Property Management
When an investor begins the process of residential property management, they often under estimate the amount of time involved with managing the property. Between finding tenants, completing timely and necessary property maintenance and keeping appropriate financial records, there is a great deal of time an investor unexpectedly spends managing the property. With a professional Residential Property Management company, investors can enjoy extra free time by spending surprisingly very little on the added assistance of an experienced professional.
Where the Time Goes
Property management often has the opportunity to be a major gain for an investor, but the time lost managing the investment sometimes does not pay for the profit. For example if an investor chooses to be the single point of contact for a tenant, they will find themselves answering the phone for clogged drains, for code enforcement issues from home owners associations as well as all of the contacts and work involved with finding tenants or renewing tenant contracts. All of this is easily eliminated with the help of a residential property management company.
A residential property management company has the staff, resources and skills to efficiently manage your property. Instead of the investor searching through the phone book or internet for multiple contractors to bid on a repair, the property manager already has a bank of qualified resources ready to complete the job. Designated marketing channels are already created by a residential property management firm, with leveraging opportunities and advertising expertise to help provide continuous rental contracts. Losing multiple months of rental income because of a lack of qualified rental occupants can adversely affect the overall profit of some rental properties extensively.
Hiring a property management company to assist with the day to day functions of a property investment is far less expensive than some investors may think. The typical cost of a residential property management firm is only 6-10% per month depending on the amount of services required at the rental. This is a very minimal fee compared to the time an investor would spend self-managing the entire rental property.
Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.
Where the Time Goes
Property management often has the opportunity to be a major gain for an investor, but the time lost managing the investment sometimes does not pay for the profit. For example if an investor chooses to be the single point of contact for a tenant, they will find themselves answering the phone for clogged drains, for code enforcement issues from home owners associations as well as all of the contacts and work involved with finding tenants or renewing tenant contracts. All of this is easily eliminated with the help of a residential property management company.
A residential property management company has the staff, resources and skills to efficiently manage your property. Instead of the investor searching through the phone book or internet for multiple contractors to bid on a repair, the property manager already has a bank of qualified resources ready to complete the job. Designated marketing channels are already created by a residential property management firm, with leveraging opportunities and advertising expertise to help provide continuous rental contracts. Losing multiple months of rental income because of a lack of qualified rental occupants can adversely affect the overall profit of some rental properties extensively.
Hiring a property management company to assist with the day to day functions of a property investment is far less expensive than some investors may think. The typical cost of a residential property management firm is only 6-10% per month depending on the amount of services required at the rental. This is a very minimal fee compared to the time an investor would spend self-managing the entire rental property.
Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.
PROPERTY MANAGEMENT
Many investors are surprised to find out how much money management is actually involved with residential property management. Once the right property in the perfect location is selected, many investors believe all they have left to do is collect the monthly rent check from their tenants and then wait for their investment to mature. What the true reality is, there are deposits, bookkeeping, income and expense reports and complete financial records necessary for year-end tax purposes. These overly time consuming but necessary functions can all be efficiently handled by a professional property manager.
Residential property managers become involved with the financial management aspect in order to assist their investors with better management of the overall investment. For example, an investor may be awaiting the monthly rent payment from their tenants, but a property manager would be able to readily assess and bill the tenant for any added fees for items such as late payments or non-sufficient funds.
Keeping the Records
A professional residential property management firm can help to maintain detailed records that will be helpful for annual tax purposes. There are also a number of local and state financial regulations that a residential property manager would be able to guarantee compliance with, removing this complicated and time consuming process from the investor.
An investor will also appreciate timely reporting on income incurred on the property or expense reports for necessary repair items. A residential property management company can also provide investors with access to market information to help insure the rental price is current with other similar properties and also to help assess the right time to sell.
A residential property management company can assist an investor with adequately managing the bookkeeping of the rental property. These details initially appear relatively simple but after a few late rental payments, incomplete paperwork required by a tax accountant and multiple repair bills- balancing the cost of the investment becomes critical in determining the overall profit.
Residential property managers become involved with the financial management aspect in order to assist their investors with better management of the overall investment. For example, an investor may be awaiting the monthly rent payment from their tenants, but a property manager would be able to readily assess and bill the tenant for any added fees for items such as late payments or non-sufficient funds.
Keeping the Records
A professional residential property management firm can help to maintain detailed records that will be helpful for annual tax purposes. There are also a number of local and state financial regulations that a residential property manager would be able to guarantee compliance with, removing this complicated and time consuming process from the investor.
An investor will also appreciate timely reporting on income incurred on the property or expense reports for necessary repair items. A residential property management company can also provide investors with access to market information to help insure the rental price is current with other similar properties and also to help assess the right time to sell.
A residential property management company can assist an investor with adequately managing the bookkeeping of the rental property. These details initially appear relatively simple but after a few late rental payments, incomplete paperwork required by a tax accountant and multiple repair bills- balancing the cost of the investment becomes critical in determining the overall profit.
Development Services
Project and development services deliver the business objectives on behalf of their clients who are corporate clients, investors, builders and any other category of business houses. When you are planning on hiring one of these companies to assist you in delivering your objectives to others you should first ensure that they have the necessary infrastructure and can deliver the goods in a profitable manner and make your own investment in them worthwhile. Before you as a corporate business plan on hiring one of these project and development services do a bit of research on the company you plan to hire. Go through their infrastructure and list of employees and see the qualifications that they possess and also the past experience of this firm.
Project development companies offer many different kinds of services such as: Price contracting, Construction management, Construction monitoring, Development management, Development advice, Move management, Churn project management, Fit out project management, Strategic Occupancy Planning, Technical and financial advice to name a few. With all these areas of expertise they can assist you in many ways by giving you their expert advice and also taking care of your projects. This could be a new construction which requires overseeing, doing the interiors of a large campus, upgrading a certain project, do a refurbishment of an infrastructure and several others. The project and development services offer their service to align your own business with some of their business objectives which have proved to be profitable.
A project and development company is useful when your own organization lacks some skilled services or is running short of hands and you need to delegate some of the responsibility to another source. Whether you are a construction company and need engineering personnel to help you or if you are an accounts or financial firm these companies have it all to assist you in any way you wish. The only key areas you should ascertain before you hire them, is that they do have this expertise and have worked on similar projects in the past.
Searching for a project and development service organization is easy if you search online, you will get hundreds of firms popping up, but you cannot rely on all of them. So if you find some firms which seem to have the necessary know how which your company requires go through a list of their past clients and enquire about their services. You should first conduct some research on several firms and only then finalize one. If you have to hand over some of your responsibilities to another company they should be in a position to add to your profits and your own expertise and deliver better goods in fact. So apart from their previous clients list you should go through their employee's qualifications and their experience, as these are the people who will be handling your job.
Project development companies offer many different kinds of services such as: Price contracting, Construction management, Construction monitoring, Development management, Development advice, Move management, Churn project management, Fit out project management, Strategic Occupancy Planning, Technical and financial advice to name a few. With all these areas of expertise they can assist you in many ways by giving you their expert advice and also taking care of your projects. This could be a new construction which requires overseeing, doing the interiors of a large campus, upgrading a certain project, do a refurbishment of an infrastructure and several others. The project and development services offer their service to align your own business with some of their business objectives which have proved to be profitable.
A project and development company is useful when your own organization lacks some skilled services or is running short of hands and you need to delegate some of the responsibility to another source. Whether you are a construction company and need engineering personnel to help you or if you are an accounts or financial firm these companies have it all to assist you in any way you wish. The only key areas you should ascertain before you hire them, is that they do have this expertise and have worked on similar projects in the past.
Searching for a project and development service organization is easy if you search online, you will get hundreds of firms popping up, but you cannot rely on all of them. So if you find some firms which seem to have the necessary know how which your company requires go through a list of their past clients and enquire about their services. You should first conduct some research on several firms and only then finalize one. If you have to hand over some of your responsibilities to another company they should be in a position to add to your profits and your own expertise and deliver better goods in fact. So apart from their previous clients list you should go through their employee's qualifications and their experience, as these are the people who will be handling your job.
Selecting Property Management
Selecting a property manager is a serious professional decision. Word of mouth recommendations are taken personally and are dependent on the trust level between the two parties. Some people consider that to be enough. If someone they trust points them to their personal choice, that's all they need. What's good enough for you is good enough for me. What exactly does 'good enough' mean? It's a decision worthy of some research to see if there is a better candidate.
Include companies recommended by others in your decision making process and developing your list of employable managers. Signage of property similar to yours may include contact information to jot down. Phone books and the internet are simple methods of compiling a list of names. The length of that list will be proportionate to your determination and patience. Bare in mind, it's possible to over-research everything. Don't put yourself in a position where a decision can't be reached because you've convinced yourself that a little more research will reveal a better answer. That becomes a vicious circle.
Set some guidelines regarding the number of interviews and/or the time frame for your decision. Make a list of questions based upon your expectations:
- How would they market the property? - What occupancy rate would they realistically expect? - Can they work within your maintenance budget? - What are their fees? - Would there be any additional charges? - Will they provide references? - What market would they target? - What do they expect from the tenants or guests? - What do they provide for tenants or guests? -How will they handle emergency situations? - Are they available after regular working hours? - Can they provide you with copies of all contracts?
As the interviews are scheduled, keep a close accounting of anyone who is difficult to contact or is resistant to your schedule. If you're experiencing trouble already it will only become worse later. They are going to be working for you...remember?
Hopefully, the person interviewed will be your contact person and will be the one to represent you to tenants. Compare personalities to get a feel of how they would deal with stress or a crisis. Imagine yourself as a prospective tenant. Would you rent from this person? Try to get a sense of their communication skills. Articulation is very important if this person is to represent you. It's great if they have a sense of humor without being silly. They should also be able to express themselves so as to be taken seriously when necessary.
Of course, many of these points would pertain to any employment interview. One point unmentioned is to find out what their goals are. Those goals should run parallel with your own. They need to know your goals and strive to work toward them.
Test their ethics. Suggest that you don't intend to spend any money on maintenance. You're only interested in a financial return on your investment. If they have no problem working for a slum lord...scratch them from your list. Likewise, if they promise to obtain a specific number of tenants, bookings or monetary return...scratch 'em.
Include companies recommended by others in your decision making process and developing your list of employable managers. Signage of property similar to yours may include contact information to jot down. Phone books and the internet are simple methods of compiling a list of names. The length of that list will be proportionate to your determination and patience. Bare in mind, it's possible to over-research everything. Don't put yourself in a position where a decision can't be reached because you've convinced yourself that a little more research will reveal a better answer. That becomes a vicious circle.
Set some guidelines regarding the number of interviews and/or the time frame for your decision. Make a list of questions based upon your expectations:
- How would they market the property? - What occupancy rate would they realistically expect? - Can they work within your maintenance budget? - What are their fees? - Would there be any additional charges? - Will they provide references? - What market would they target? - What do they expect from the tenants or guests? - What do they provide for tenants or guests? -How will they handle emergency situations? - Are they available after regular working hours? - Can they provide you with copies of all contracts?
As the interviews are scheduled, keep a close accounting of anyone who is difficult to contact or is resistant to your schedule. If you're experiencing trouble already it will only become worse later. They are going to be working for you...remember?
Hopefully, the person interviewed will be your contact person and will be the one to represent you to tenants. Compare personalities to get a feel of how they would deal with stress or a crisis. Imagine yourself as a prospective tenant. Would you rent from this person? Try to get a sense of their communication skills. Articulation is very important if this person is to represent you. It's great if they have a sense of humor without being silly. They should also be able to express themselves so as to be taken seriously when necessary.
Of course, many of these points would pertain to any employment interview. One point unmentioned is to find out what their goals are. Those goals should run parallel with your own. They need to know your goals and strive to work toward them.
Test their ethics. Suggest that you don't intend to spend any money on maintenance. You're only interested in a financial return on your investment. If they have no problem working for a slum lord...scratch them from your list. Likewise, if they promise to obtain a specific number of tenants, bookings or monetary return...scratch 'em.
Facility Management
With the many new shopping complexes, office complexes, super specialty hospitals, airports, hotels, IT parks and corporate houses and malls coming up, there is a new kind of job which is required to keep them working smoothly and these are the facility operations and management jobs. The entire running of these multiplexes depends on how effectively the facility management can handle all the different operations. This is no simple job and requires a lot of multitasking on the part of the manager, who has to ensure that every "cog in the wheel" is well oiled and the whole operation is handled smoothly.
There are numerous departments under this management and each one caters to a different task. For an effective management of the facilities which may be a large building with many offices in it, or a shopping complex which has several shops and restaurants in it, or even luxury apartments which cater to wealthy clients there has to be effective running of the whole system to ensure proper service 24/7 for the customers and clients.
Every multistory building has a complex electrical system, generator and back up system, computer systems, lighting and lift management and even the water has to be managed effectively so that there is smooth transition from an empty tank to refilling it before there are complaints of no water in the taps. The housekeeping and maintenance is another area which should be effective along with the security system too. All this reflects finally on the manger who is heading the complete facilities management.
Coordination and management of all this requires a certain amount of talent and organizational skills in the person who is going to head this and handle it all. Delegating jobs to skilled workers who take charge of technical problems is something the manger has to depend on and for this he needs a trustworthy and skilled team. Selecting the team should be done with care and people who are in charge of different technicalities should be well versed in their jobs and not let down the management.
The manager should ensure that there is a software system in his facility which assists him effectively in handling all issues here. The security system and visitor control should be monitored at all times to ensure the security of those who occupy this facility. Other crucial systems are the alarm system which could be a fire alarm, a burglar alarm or an alarm to notify the person in the facility of any kind of emergency. Software on these facility systems can be procured or even made to order to handle all the tasks of the facility smoothly.
A good software program takes most of the load off the manager and other heads of departments and gives them an accurate picture of what is going on in the facility. Streamlining the operations and making sure that all areas are covered so that there is no slip up is best controlled with a software program which gives an accurate picture.
There are numerous departments under this management and each one caters to a different task. For an effective management of the facilities which may be a large building with many offices in it, or a shopping complex which has several shops and restaurants in it, or even luxury apartments which cater to wealthy clients there has to be effective running of the whole system to ensure proper service 24/7 for the customers and clients.
Every multistory building has a complex electrical system, generator and back up system, computer systems, lighting and lift management and even the water has to be managed effectively so that there is smooth transition from an empty tank to refilling it before there are complaints of no water in the taps. The housekeeping and maintenance is another area which should be effective along with the security system too. All this reflects finally on the manger who is heading the complete facilities management.
Coordination and management of all this requires a certain amount of talent and organizational skills in the person who is going to head this and handle it all. Delegating jobs to skilled workers who take charge of technical problems is something the manger has to depend on and for this he needs a trustworthy and skilled team. Selecting the team should be done with care and people who are in charge of different technicalities should be well versed in their jobs and not let down the management.
The manager should ensure that there is a software system in his facility which assists him effectively in handling all issues here. The security system and visitor control should be monitored at all times to ensure the security of those who occupy this facility. Other crucial systems are the alarm system which could be a fire alarm, a burglar alarm or an alarm to notify the person in the facility of any kind of emergency. Software on these facility systems can be procured or even made to order to handle all the tasks of the facility smoothly.
A good software program takes most of the load off the manager and other heads of departments and gives them an accurate picture of what is going on in the facility. Streamlining the operations and making sure that all areas are covered so that there is no slip up is best controlled with a software program which gives an accurate picture.
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