Most things, if left unattended to and uncared for fall into disrepair. The same goes for real estate as well, be it commercial or residential properties.
Why do commercial landlords and strata management clients hire a facilities and property management company to manage their projects?
Buildings that are poorly maintained will affect rentability and impact the value of the property negatively. Given the recent push into gentrification measures by the Singapore Government, a deteriorating building is not only an eyesore in the urban landscape, but potentially dangerous to inhabitants.
What is property management?
In general, property management is the process and practice of maintaining a building – be it commercial or residential – and ensuring its occupants' needs are well-met. Property managers would thus oversee the daily operations of the property, as well as help manage and respond to any enquiries or concerns from the building's occupants.
In the case of Colliers' real estate management services, the team of experienced real estate property managers and on-site staff work tirelessly to ensure the buildings we manage are in the best possible condition. A full support structure is placed around each asset, including a functioning accounting team, procurement and contracts specialists and HQ support from Customer Service to leasing professionals.
As a combination, this holistic approach ensure correct asset management of any property we manage.
Why appoint a property management company?
#1 Maintain or enhance value of the property
Regular checks and timely response to any repair or maintenance issues in the property will improve the building’s condition, thereby helping to support its value. Improving underlying value is important in an up-cycle market, whilst protection of value is equally important during a down-cycle market.
#2 Lower maintenance and repair costs
A property management firm will be able to identify any maintenance issues and recommend solutions to address them before they become larger, more costly problems down the road.
#3 Help in tenant/occupier attraction and retention
No one wants to live or work in a building that is falling apart. Commercial landlords would struggle to attract companies to take up space at the development, let alone require improved rents. Similarly, it would be challenging for apartment owners to lease their units in a rundown apartment block.
Depending on the strategy, it will be important that the managing agent and Landlord operate together to ensure delivery.
A building that has fallen into disrepair is unsafe. For example, leaking pipes or poorly maintained plumbing can cause flooding and pose electrical risks. Lift mechanisms and major plant machinery needs a proper maintenance programme in place. Long-term water exposure may even result in mould and structural damage.
#5 Peace of mind for owners
Having a property manager to look after the common facilities in the development means the landlord or home owner would not have to personally deal with vendors or contractors, oversee repair works or fret over whether the building is well-maintained. This provides a peace of mind and gives them more time to focus on other matters in their business, or spend time in a more productive manner.
With increasing focus on sustainability, a property manager – supported by other consulting functions within the firm – will be able to suggest ways that would help to improve the comfort of occupants in the building, conserve energy and optimise space use. This will typically also result in lowering operating costs of the assets to the benefits of both owner and occupier.
In recent months however, it has become apparent that the needs of building occupants evolve quickly and the rise of new technologies will reshape the property management industry.
To this end, Colliers – tapping on the firm’s enterprising culture – continues to drive innovation and find new approaches to help clients better manage their real estate in line with their business or personal goals.
Editor's note: This blog post was originally published in June 2018 and has been updated for relevance.
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