Professional Property Management
- A Building's Best
Investment
Management fees always appear of the expense side of the
financial statement. While they are certainly a cash outlay,
it is wrong to consider them as a "cost". In today's market of
rising utility, real-estate tax, marketing and maintenance
cost, professional property management is, in reality, an
investment in increasing the value of your property.
A superintendent / manager can collect rents. A professional
property manager identifies those strategies that gain
additional revenues and add to profitability. Each additional
dollar gained multiplies seven to ten times in increased value
for the property.
A professional property manager can take on a site that has
been neglected for some time. The tenants are unhappy. Its
appearance is an eyesore and its mode of operation is
antiquated. Rent are unvalued and vacancies are rising.
Even before delving into operations, staffing and capital
improvements the professional knows the basic appearance has
to be addressed. "Curb appeal" is still the single most
important factor in marketing rental units and, as a rental
property is always in a marketing mode, it has to be market
ready.
Next, a survey of the property and the units identifies key
areas in need of improvement. The physical assets ( structure,
envelope, mechanical, electrical, life safety, grounds, common
area aesthetics, etc.) are analyzed as well as the utility
consumption patterns to determine areas for savings.
An examination of the existing tenancies and occupancy
patterns indicates the strength (or weakness) of the present
revenue base. A survey of the market and surrounding the
property establishes the potential that can be reached and the
results that should be obtained. With the strategic goals and
base lines established the professional plans out a program.
Financial parameters for budgets and funding are set out. The
feasibility of revenue gains on turnover and through the
regulatory process is ascertained. The steps of the program
are initiated and carried through to completion.
The superintendent / manager approach would take modest rent
increase, maintain occupancy by undervaluing the revenue
stream and profitability by deferring maintenance items. The
professional approach will aggressively increase revenue and
value while boosting profitability and efficiency. |
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