1. The Property Manager’s responsibility
Lecture 2
Department of Real Estate Management
Faculty of Technology Management
(Semester /2013)
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2. Lecture outlines Defining Property Management Leasing and marketing
Overseeing financial operations
Operating the property
Supervising personnel
One title, many skills
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3. Defining Property Management (BOVAEA)
"Property Management" means
the management and control of any land, building and any interest therein, excluding the management of property-based business on behalf of the owner for a fee and includes but is not limited to the following responsibilities:
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4. Property Management responsibilities as listed by BOVAEA
monitoring outgoings for the property and making payments out of the income from the property;
preparing budgets and maintaining the financial records for the property;
enforcing the terms of leases and other agreements pertaining to the property; .
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5. Property Management responsibilities as listed by BOVAEA
advising on sale and purchase decisions;
advising on insurance matter;
advising on the opportunities for the realisation of development or investment potential of the property; and
advising on the necessity for upgrading the property or for the merging of interest.
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6. Property Management responsibilities as listed by BOVAEA
The Board would require all properties which are not "property based business" to be managed by a Property Manager who shall be a registered valuer.
Therefore, property owners of retail centres, shopping complexes, etc who engage external managers, and who do not manage this own buildings, are advised to engage only the services of registered valuers for property management
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7. Property Management responsibilities as listed by BOVAEA
Owners of such complexes are advised to approach the Board for directions and guidelines in instances where they find any difficulty in appointing property managers.
In any case property owners are advised that property management does not include leasing or letting of space in a shopping complex, etc.
If the property manager does this work he cannot charge a separate fee unless he is a registered estate agent. This will also apply to in house property managers.
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8. PMs General Responsibilities
Creating promotional materials for properties
Showing vacant space to prospective tenants
Negotiating leases with tenants and their attorneys
Keeping in contact with current tenants to ensure that they are happy with the property
Hiring and supervising a staff that may include other property managers and maintenance personnel
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9. PMs General Responsibilities
Working with vendors to acquire the goods and services a property needs to operate
Developing a budget estimating possible income and expenses
Keeping financial records for rent collected and money spent
Analysing competing properties to better understand the best way to market the property
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10. PMs General Responsibilities
Working with lawyers to evict tenants who do not pay their rent or who violate other requirements of their leases
Getting bids for and purchasing insurance, environmental consulting, security and other services needed for building operations
Advising the owner when major repairs or renovations of the property are needed
Assisting the owner in deciding when to sell the property
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11. Leasing and marketing Market research Showing the space
Finding potential tenants
Showing the space
Qualifying the prospect
Negotiating leases
For the best terms and the most reasonable rent
Leasing and marketing on the internet
Multinational properties
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12. Overseeing financial operations
Record keeping
Even though the actual record keeping is handled by bookkeepers or clerical personnel, the property manager must keep an accurate, detailed account of all income and expenses.
Budgeting
Developing an annual budget for a property that based on both past experience and anticipated future performance
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13. Operating the property
Tenant relations
Sustainable relations with tenants
Ongoing relations
A tenant newsletter
Tenant events
Organising needed services
Regular visits with tenants
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14. Operating the property
Problem solving
Handling complaints
Maintenance tasks
Effective maintenance work
Purchasing
Exploring alternative for quality and price
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15. Supervising personnel
Employees must be willing to work long hours as the main role of property managers are:
To serve needs of the tenants
To handle all problems that arise
To put the concerns of their tenants before their own needs
Employees are also required for travel ( site visits & regular inspections)
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16. One title, many skills
Property managers must have a wide range of skills;
From finance to legal issues and from working with people to setting up and managing complex computerised systems.
Eg tasks such as lease negotiation and tenant relations require good people skills and ongoing personality
Financial record keeping and market analysis require a factual, detail-oriented mind.
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17. Conclusion
It is the rare property manager who performs all of the tasks described in this lecture –particularly today, when there is increasing trend toward specialization in the industry.
Nonetheless, the property manager must still be a generalist who is good at many things. That, for many, is the hardest and the most exciting part of property management
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18. References
Evans, M, (2007), Opportunities in Property Management Careers, McGrawHill.
Kyle, R, (2000), Property Management, 6th Edition, Dearborn.
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