In my last post, we looked at the reasons for hiring a property management company. In this one, we drill down to a deeper level of just one of those aspects: facilities management.  It is a universally accepted fact within the real estate world that solid facility management is the foundation upon which a successful property management company is built.  Its importance is rooted in the fact that it deals directly with the physical state of the property– essentially ensuring a structure’s functionality.

The basic concept is that the margin of profit for a real estate investment ultimately begins with the condition of its physical state.  If a building has faulty plumbing and holes in the walls, it will be very difficult to find quality people and companies interested in renting, with those that do, on the lookout for a better alternative.  On the other hand, a clean building with reliable electricity, running water, and air conditioning creates a comfortable, high-quality living or working experience.  In this case, fewer problems arise and tenants are satisfied and stay tenants longer. Every property owner knows that turnover is the enemy of ROI.  The difference between these scenarios can be found in the hiring of a property management company to properly oversee all facilities.

The various aspects of facility management are onerous, require expertise, and an investment of time.  Here are several areas that a property manager will fully supervise and control.

ENVIRONMENTAL, HEALTH, AND SAFETY SPECIFICATIONS

A professional property manager ensures that all environmental, health, and safety specifications are not only met, but to the extent possible, exceeded in some areas.  Meeting these specifications is vital to the growth and longevity of any real estate investment.  Failure to do so can result in administrative work, constant demands and complaints from tenants,  insurance claims and possible fines.  The negative press received from failing to meet certain requirements only further reduces the value of the property.  The worst case scenario is a government entity deeming the property ‘unfit to occupy’.

MAINTENANCE, TESTING, CLEANING AND INSPECTIONS

This area of property management is most essential to the operational efficiency of a building or home.  Property managers possess the connections and experience to negotiate excellent terms with appropriate building contractors– depending on the management company, these savings can be passed on to the property owner. A property management company engages reliable contractors to take care of all maintenance, testing, cleaning, and inspections and is there to make sure the work is completed and acceptable.  Their job is to maximize the lifespan of appliances, machines, utilities, or other technology.  This aspect of property management deals with tenants at the face to face level.  Solid property management companies will ensure an effective delivery of service– a promise that results in satisfied renters.

SECURITY

Security for a property is almost always run by an outside company with specific expertise and fully trained resources.  Again, the invaluable connections of property managers with outside contractors come into play.   Security, which is often overlooked, is one of the most important factors in the efficiency and long term health of a real estate investment.  Professional security teams or top security monitoring systems not only ensure the safety of tenants, they also ensure the safety of the building in the face of vandalism or burglary.

CONCLUSION

A professional, high quality property management company can guarantee reliable and excellent facility management.  For a landlord, this pays significant dividends.  Time is saved, stress is eliminated, and efficiency is increased.  Most importantly, the value of the property is protected and enhanced.  Ultimately, this translates to a higher, more consistent flow of income and an improved ROI.