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Property Management Types |
The management of real estate in the new millennium is both complex and
specialized, as all management companies are not created equal. Just as
there are different types of properties, (i.e., apartments, retail) there
are different types of management companies that specialize in one or more
categories. A property management company that specializes in neighborhood
shopping centers with net leases, percentage rents, etc. We will
examine four areas of management specialties: retail, office, apartments
and miscellaneous areas.
Retail Management
Within this category there are sub-categories that include:
strip, neighborhood, community and regional shopping centers.
The management of a ten-store strip center would not be
comparable with the management of a 100 store regional center
with large anchor stores and national tenants. A question to ask
when choosing a management company is what type of centers does
the potential management company now manage and are their
clients satisfied? The management of shopping centers requires
specialized accounting skills and programs to handle common area
maintenance, billings, as well as leasing talents in many
instances.
Office Building Management
There are four grade of office buildings; A, B, C and D, with A being the
best location, most prestigious and commanding the highest rents. Class D
buildings, on the other hand, are the older buildings in less desirable
locations with the lowest rents.
The management of large office buildings requires special engineering,
administration and leasing talents. A management company needs to know if
the building meet local authorities requirements for restrooms, elevators,
fire escape plan, building safely plan, etc. Are the lease
abstracts laid out so that cost stops can be calculated and
extra hours of A/C billed? Is the building measured so that the
difference between rentable and usable area is calculated? A
management company that manages condominiums would not have the
expertise and skill to manage a high rise office building.
Apartments & Condominiums Management
There are over million units of apartments and condominiums in Malaysia and management
of residential properties is the largest segment of the real estate
management business. The management of larger apartment or condo complexes requires
onsite managers, maintenance personnel, payroll, etc. Many larger
management companies have the professional property management computer
system , thus allowing better
tracking of delinquencies, units account and cash flow.
Management fees charged are normally based on a percentage of income
collected with a minimum monthly base fee. Larger properties usually
command a lower percentage rate (i.e., 2%) than a single family home that
may be quoted up to10%. Fees are negotiated on a per property basis and
depend on many factors including condition, location and size of the
property, etc. Leasing and other auxiliary service fees are separate and
in addition to the management fee.
Miscellaneous Areas Management
Miscellaneous areas of management includes industrial,
self-storage facilities, motels, car parks, etc. These
properties require specialized knowledge particular to their market and
knowledge of state laws that apply. The management company should have a
track record within the specific area. For instance, car parks
management requires experience in security, billing and collection that
differ from others.
Steps in a selection of Property Management Company
The best way to begin the selection process is to call a prospective
property management company and ask if they are interested in managing
your property. Most management companies will provide a free written
proposal containing a sample management agreement that will describe the
services to be provided, spending limits, reports and fees, etc. A copy
shall be sent to all the residents in the apartment/condo. If the management
agreement seems reasonable the next step would be to make a visit to the
management company offices. During your visit observe whether the offices
are neat and orderly, meet the property manager and accounting personnel
that will be assigned to the subject property. The management company
should provide a variety of references, which should be checked out, as
well as the interview with resident is references site to known the actual
situation of the managed property.
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