Bachelor of Science in Real Estate Management Property Management System Property Management
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Junjie TebreroBachelor of Science in Real Estate Management Property Management System Property Management
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Junjie TebreroBACHELOR OF SCIENCE IN REAL ESTATE MANAGEMENT
PROPERTY MANAGEMENT SYSTEM
Property Management
• Real Estate Specialization
• Need for Skilled manager due to property complexity.
• Oversight of property
Scope of Properties handled in Property Management
• Single family houses
• Condominiums
• Townhomes
• Duplex
• Apartment buildings
• Mix use
Segments of Projects:
1. Economic 3. Mid-income 5. Luxury
2. Affordable 4. Upscale
Real Estate Management Organization Key factors
• Linking mechanism and services
• Monitoring of processes
• Appropriate skills and competencies
Property Manager
• Hired to handle the daily operations of a real estate investment
• Responsibility
1. Rent
à Setting Rent
à Collecting Rent
à Adjusting Rent
2. Tenants
à Finding Tenants
à Screening Tenants
à Handling Leases
à Handling complaints / emergencies
à Handling move outs
à Dealing with evictions
3. Maintenance and repairs
à Preventive maintenance
à Repair
4. Landlord – Tenant Law
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à Handle security deposits
à Terminate a lease
à Evict a tenant
5. Responsible for supervising
à Other employers (Concierge, Security)
à Vacant properties
6. Responsible for managing the budgets / maintaining records
à Operating budget
à Property records
Property Management Specialist opportunities
• Leasing
• Asset
• Corporate property management
• Association management
• Housing program management
• Office buildings
Considerations of Property Managers
1. Owner’s objectives
2. Competitive property market àLocal & Regional
3. Market Indicators à Occupancy & Vacancy rate
4. Revenue source
5. Projected expense
Facility Management
• A profession that encompasses multiple disciplines to ensure functionality of the built environment by
integrating people, places, process and technology
- International Facility Management Association
Inter-relationship Core, Non-core and Facility management
1. Core business: Business strategy, objective, plan and process.
2. Non-core business àSupport services, ICT infrastructure
3. Define facility management: Service scope & delivery, resources, sourcing model
Facility Management basic plan
1.) Develop facility management strategy
à Strategic analysis, Solution development and strategy implementation.
2.) Determine sourcing model
à Insource, Outsource, Co-source
3.) Procure services
à Prequalification
à Request for proposal / tender
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à Tendering
4.) Deliver services
à Mobilization à Contract management
à Transition
5.) Manage performance
à Service review
à Performance measurement
à Benchmarking
Space Management
• Process of planning space requirements, identify weakness, allocations of current necessary space to the
clients, monitoring and identify usage problems.
World Intellectual Property Organization (WIPO)
• Assists applicants in seeking patent protection internationally for their inventions
• Self-funding agency of U.N.
End user experience
• Customers are impacted by facility management
• E.g. Airport, Colleges
Value for Money
• Term long used to express the relationship between the cost of a good or service and it’s quality or
performance.
Challenges of a Property Manager
• Difficult tenants
• Long hours of work
• Need for emergency capital
• Potential liability
THE PRACTICE OF THE PROPERTY MANAGER
Role of Property Manager
• Operations Manual
• Physical and Building operations
• Financial
• Marketing
• Legal
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Values
Value in use
• “Property itself”
• Value to the owner(s)
Value in exchange
• Considers outside forces of property
• Appraised value
Values elements / determination
Demand
Utility
Scarcity
Transferability
Management Agreement
• Define key responsibilities of the parties
• Includes PF of property management companies
Types of Property Management Operations
1.) Fee management
à Companies are paid P.F. For operational experiences & controls.
2.) Asset management
à Investment oriented financial planning of a portfolio
3.) In-house management
à Asset managers hire professional property managers
4.) Self management
à 1 person in charge of leasing & bookeeping
à Others for maintenance
à Inefficient
Considerations in Property Investments
• Location
• Rental prospects
• Track record
• Price
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Budget Considerations
• Net operating income (Monthly & Annual)
• Cash flow (Monthly & Annual)
• Capital reserve budget
• Bookkeeping
à Tracking of receipts & procedures
Insurance Considerations
• Protect the building structure & activities surrounding the general management of the building.
• Covers:
1. Fire
2. Property damage due to catastrophes
3. Machinery & Equipments
Security
• Comprehensive procedural manual
• 4 Dimensions:
(1) Design (2) Hardware (3) Staff (4) Management
Maintenance Plans
• 4 Steps:
1.) Assessment of property needs
2.) Identification of capabilities of on-site staff & equipment
3.) Estimating the time for each jobs
4.) Rearrangement of maintenance jobs according to staffs
Improvements
Custodial maintenance
à Day to day cleaning & up keep.
Rehabilitation
Property restoration w/o change in style & floor plan
Remodeling
Floor plan & form style change to correct functional or economic deficiency
Adaptive reuse
Conversion with creative reuse
Former airport tower to restaurant
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Building Owners & Managers Association
• Composed of building owners, managers, developers, leasing
professionals, facility managers, asset managers and providers of goods & services
• Standard for measuring buildings.
• Founded in 1907
Building Information Modeling (BIM) & Facility Management (FM)
• Purpose:
1. Reduce costs 2. Improve Performances 3. Integrates systems
• Applicable systems
1. Computerized Maintenance Management System (CMMS)
2. Computer Aided Facility Management (CAFM)
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3. Demographical Information System
4. Building Automation System
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5. Enterprise Resource Planning
Property Characteristics
• Suffer from Physical deterioration
• Suffer from obsolescence
à Changes expected from buildings
• Supply controlled by planning or zoning regulations
• Cash flow delivered by the property asset
à Controlled or distorted by lease contract between owner & developer
• Valuers may be influenced by the clients
• Effect of comparables
Growth of property management
(1) Simultaneous population growth & space needs
(2) Large range of Real Estate property that requires professional management
(3) Widely acknowledge specialize training and education
Trends in Properties
1. Co-living
à Hybrid of private & shared residential spaces
à 9,276 beds as of 1st qtr 2019
à Key factors:
1.) Convenience 2.) Community 3.) Cost 4.) Collaboration
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2. Flexible workspaces
à Client can lease out space on lighter terms
à Key factors
1. Cost reduction
2. Flexibility
3. Collaboration / Innovation
4. Talent management
Tenant Reps
• Broker or agents that specializes in helping tenants find suitable spaces
