Many Asset Managers/Owners/Investors prefer to use the services of a Property Manager to handle the everyday tasks. They also look to Property Managers to be proactive in the little things that increase the value of a property or portfolio.
A Property Manager focuses on the day-to-day operations, basically maintaining the value of the property through collecting rents, paying bills, interacting with tenants and maintenance personnel. They also prepare the budget and negotiate with vendors and new tenants on behalf of the Owner.
Some Property Management firms also focus on increasing the value of a property or portfolio through additional services such as financial analysis, accounting services, due diligence during acquisitions/dispositions, negotiation of energy contracts and overseeing protests of property tax valuations.
Below are Nine key performance indicators your Property Manager is serving you well:
1. Receives a high tenant satisfaction rating.
2. Achieves a low tenant turnover rate and knowledge of why tenants renew or leave.
3. Maintains certificate of insurance compliance with commercial tenants.
4. Provides efficiency in staff and interactions with tenants.
5. Is on top of revenue collection, including rent, applying increases or holdover, billable hours and reconciling expense pass-throughs.
6. Keeps expenses under control and within or under budget.
7. Maintains a high rate of work order completion for tenant satisfaction.
8. Mitigates incidents which could cause a financial loss.
9. Understands inspections and which ones to complete on a weekly, monthly, quarterly or annual basis.
A property manager or property management company is a vital asset that they should have on their team, along with their commercial brokerage firm. It may not be clear, but the knowledge, effectiveness, and efficiency of the entire team directly affect the value of the investment.