Management Operations Chapter 15 Management Operations

I. The Management Office ORGANIZATIONAL CHART Page 456-457

I. The Management Office (cont.) STAFFING POLICY MANUAL Dealing with Owners The policy manual should point out that the resident manager should NOT have any direct dealings with the owner unless directed to do so by the property manager or unless contacted by the owner.

I. The Management Office (cont.) POLICY MANUAL (cont.) Dress Code Basically, the dress code should reflect the way you would expect a professional in the business to dress. Interpersonal Relations Theft The policy manual or employee manual should state that such action will result in discharge of the persons involved.

I. The Management Office (cont.) POLICY MANUAL (cont.) Completed Staff Work Employees who understand “completed staff work” become part of the solution rather than part of the problem. Tenant Gifts to Managers A problem with allowing resident managers to accept gifts or gratuities is that those tenants who give greater amounts expect priority treatment regarding complaints.

I. The Management Office (cont.) POLICY MANUAL (cont.) Key Money You CANNOT allow your resident manager to accept key money. MANAGEMENT COSTS The larger a management complex, the greater the possibilities of operational efficiency.

I. The Management Office (cont.) MANAGEMENT FEES For Management Most management fees are based on a percentage of the gross income. Leasing Fees “Management fees” and “leasing fees” are related. A management contract that doesn’t provide for leasing fees is a disservice to an owner.

I. The Management Office (cont.) MANAGEMENT FEES (cont.) Lease Renewals and Options Termination Fee A termination fee is really like liquidated damages agreed to in advance by the manager and owner.

II. Employees STATUS OF THE RESIDENT MANAGER Your resident manager is treated by law as an employee. Once you give notice you may have created a tenancy.

II. Employees (cont.) QUALITIES OF A RESIDENT MANAGER People oriented Reliable Organized Salesmanship Good character Trade skills Positive attitude

II. Employees (cont.) RESIDENT MANAGER JOB DESCRIPTION The duties of the property manager vary greatly. What is important is that a property manager fully understand his or her duties.

II. Employees (cont.) MANAGERIAL PROBLEMS Employees should feel that management supports them when a discretionary decision later turned out to be wrong. Sometimes good employees begin to slack off. Let them know that you noticed. Ask how you can help them.

III. Employee Hiring APPLICATION TESTS EMPLOYEE INTERVIEW You should avoid giving prospective employees tests. EMPLOYEE INTERVIEW TEMPORARY WORKERS

III. Employee Hiring (cont.) COLORBLIND MANAGEMENT The authors view this as a significant problem which the profession will have to address. It is NOT enough that we “talk the talk.” We must “walk the walk.” ILLEGAL ALIENS Don’t assume from a person’s accent or appearance that they are NOT a citizen of the United States.

IV. Working With Employees EMPLOYEE FILE EMPLOYEE EVALUATION All employees should be evaluated. 30-Day Evaluation Subsequent Evaluations The time to give any salary raise or bonus would be at the close of an evaluation session. Tenant Exit Interview

IV. Working With Employees (cont.) EMPLOYEE RELATIONS You should always address an employee with respect. Never use derision. An incentive for resident property managers to excel can be promotion to larger units offering higher earnings and/or better living conditions.

IV. Working With Employees (cont.) EMPLOYEE RETENTION The better the coverage offered, the more difficult it becomes for an employee to leave. An employee gets used to an end-of-the-year bonus so it becomes difficult to accept another position where such a bonus is NOT given.

IV. Working With Employees (cont.) TRAINING Proper training of new hires and an understanding of what is expected is well worth the few days needed for training. FIRING AN EMPLOYEE Firing an employee should be done on a face-to-face basis if at all possible.

V. Opening a Management Office YOUR COMPETITION YOURSELF YOUR PLAN Just setting a direction to your career will NOT guarantee success. However, success is more likely when planned than managing by crisis where the first telephone call of the day determines the direction of your efforts.

Chapter Summary The Management Office Employees Employee Hiring Working With Employees Opening A Management Office