The Property Manager’s responsibility

The Property Manager’s
responsibility
Lecture 2
Department of Real Estate Management
Faculty of Technology Management

(Semester 1 2012/2013)

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UNIVERSITI TUN HUSSEIN ONN MALAYSIA

Lecture outlines

• Defining Property Management
• Leasing and marketing
• Overseeing financial operations
• Operating the property
• Supervising personnel
• One title, many skills

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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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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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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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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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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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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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• 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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• 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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Leasing and marketing

• Market research
– 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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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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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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Operating the property

• Problem solving
– Handling complaints
• Maintenance tasks
– Effective maintenance work
• Purchasing
– Exploring alternative for quality and price

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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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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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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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References

• Evans, M, (2007), Opportunities in
Property Management Careers,
McGrawHill.
• Kyle, R, (2000), Property Management,
6th Edition, Dearborn.

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The Property Manager’s responsibility

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