Property management in today's marketplace

Real Estate Weekly, Oct 6, 2004 by Robin Blair

In today's highly competitive and stagnant real estate market, property managers have become increasingly important, playing a value-added role, enabling landlords to maintain a competitive edge in the marketplace.

However, to truly succeed in property management today, it requires more than a basic knowledge of Property Management 101, it demands a highly sophisticated, state-of-the-art approach.

No longer is property management defined as merely collecting rent, changing light bulbs and coordinating service contracts.

In a tenants' market, which is clearly the scenario today, landlords are under pressure to maintain high occupancy and tenant satisfaction at their facilities. Going above and beyond for both the tenant and the landlord is now standard for a successful property management approach.

To achieve tenant satisfaction and add value for the building owner, it is key for property managers to first understand the landlord's and each tenant's needs and business objectives.

With this in mind, property management now includes more fiscal management disciplines in its service platform, just as much as it has focused on physical management in the past.

An effective property management team must be innovative and continually suggest ways for all parties to meet their occupancy and efficiency goals.

Some of the ways a property manager can play a value-added role are by maximizing income, reporting complete and accurate income/expenses each month, effectively placing capital improvement dollars into service, accurate budget forecasting, balance sheet management and the day-to-day support of building marketing teams.

It is the precise delivery of these types of services that make all the difference in the world to tenants and building owners in achieving overall satisfaction.

Offering this fresh approach to property management and bringing these services to the table, makes for happy owners and tenants, as well as longer lease terms and more lease renewals. Owners also have added needs to maintain above average facilities in today's challenging marketplace.

A valuable property management team can offer strategic advice on capital improvements and costs, company and building signage, vendor and contractor contacts and asset management services, among others.

To be on the cutting edge of the property management arena, you need a well-rounded and mature property management team.

Assembling a group of unique professionals with diverse backgrounds in such fields as finance and marketing, as well as commercial real estate, is essential to any company's property management program.

In today's marketplace, property managers are increasingly becoming a more valuable, and essential part of the real estate operation.

With more services and innovative solutions being offered by property managers, landlords can expect to achieve greater tenant satisfaction and to enhance their leasing success.