Your property doesn’t look well-maintained. Tenants are complaining that even routine maintenance requests aren’t properly addressed. Payroll costs are too high. Leasing activity is sluggish at best. Worst of all, operating expenses are out of control. Does any of this sound familiar? Bottom line: keeping property management in-house hasn’t delivered the efficiencies you wanted.
It’s a common dilemma and ultimately why an increasing number of property owners are choosing third party property managers. One of Metro’s newer clients is a case in point. The client recently had a change of regime at the executive level. Curious as to how in-house management would stack up against outsourcing, the client issued an RFP. After presenting a thorough, comprehensive proposal, Metro was awarded the business. In just six months we’ve rebid service contracts and significantly reduced operating expenses, assisted in the recalculation of operating expense recoveries and developed a plan to significantly increase future recoveries, restructured the property accounting practices to meet industry standards, and corrected deferred maintenance issues. The client is pleased and their tenants are happy.
A property management firm is only as good as its people. The term “property management” doesn’t describe one particular skill or responsibility but comprises many tasks and many skill sets. So as a landlord considering outsourcing, what are some of the characteristics that you should look for in a great property management team? Here is a checklist that may help:
- Seasoned professionals with extensive experience in your asset class
- Equipped with the latest technologies for record keeping, operations and communications
- Well versed in issues such as sustainability, construction management, and marketing
- Honest, dependable and always available
- Positive, personable and well spoken
- Engaged, efficient and well prepared
- Attentive, calm and great team players
In today’s highly competitive and unpredictable real estate market, competition is fierce to attract and retain successful tenants – offering a prospective tenant great property management is a huge advantage. Tenants can immediately see a property with good curb appeal, one that is attractive and well maintained, with minimal vacancies and operating expenses at or below market rates. Great property management is also vital to keeping your existing tenants satisfied and in place. Owners might see property management services as an additional expense, but need to instead view it as an investment that improves the property’s appearance, leasing efforts, and its bottom line, which increases the overall value of their asset – and best of all, the fees are a recoverable common area maintenance expense!
Providing great property management is an investment in human capital, equipment and technology. It’s an investment that Metro has made so our clients don’t have to.