Real estate managers are responsible for much more than most people think. When you look out your window, especially if you’re in a dense, urban environment, you probably see a lot of buildings. Someone is responsible for managing each of those properties, from top to bottom, from showing, leasing, and payments to maintenance, budgeting, improvements, safety, and so much more.
Consider the fact that someone owns every property, and likely wants to increase the value of their asset. There are many spokes to that wheel, including real estate investors, residents or tenants, and the real estate management companies engaged to meet collective goals. To be an effective property manager requires professionals to satisfy the needs of all these constituents, each with unique goals and objectives. Owners want to increase revenues and control costs, investors want to receive an acceptable return on their investment, residents and tenants look for space that meets their needs for a good value, while real estate management companies want to provide excellent service and build a portfolio of managed properties.
Clearly, property managers need a solid, well-crafted guide to satisfy all the disparate parts. It takes a bit of effort, but there are many benefits to a management plan. Below we cover some of the key areas where a management plan can help provide structure and direction to many aspects of managing a property efficiently.
1. Laying the foundation with a sound strategy
Well-crafted management plans apply physical, market, and financial data as a guide to managing a property, including making any capital improvements. Planning can help owners and investors make asset management decisions, as in buy, sell, or hold. It also articulates the owners’ goals for the property, and allows the management team to agree on a course of action, timelines, and roles to help reach those goals.
2. Developing a marketing plan
The pandemic changed everything, making property marketing more important today than ever before. Property managers need to be in touch with what tenants and residents want, from updated amenities, the latest technology-driven tools, safety, and security. The list goes on and on, but every market and every property is unique, which means paying close attention to the critical factors that could differentiate your property.
3. Driving employee development
A well-defined management plan, with well-defined goals, timeframes, and responsibilities, helps management companies manage their teams. No more wondering about expectations. In addition, with today’s struggle to find and keep talent, defining performance expectations can help young or new property management professionals stay on course and reach their own career goals.
It also protects the firm by laying out in detail the specific duties and responsibilities of the management company’s team on behalf of building ownership.
What is a property management plan?
A property management plan is a roadmap drawn to maximize a property’s potential and support ownership objectives, based on data and stated assumptions. Keep in mind, however, that the world changes, and so must property management plans. Think about the change we’ve all endured lately - the pandemic, of course, the rate of inflation we’re experiencing today, supply chain issues, a war in Europe, and a global talent shortage. No plan is static, and should be reviewed and revised as needed.
Why should I create a management plan?
Developing and maintaining a management plan allows real estate professionals to display their research and analytical skills, illustrate the ability to synthesize a vast range of facts and opinions into a coherent whole, and confirm effectiveness as communicators. The skills achieved in successfully completing a management plan can be used to prepare a plan of action for existing clients, take on the management of new properties, or make proposals to potential clients about how expert property management can help them meet their goals. The underlying philosophy here is that a property is best managed when managed by plan.