Magazine article Journal of Property Management

Pump Up the Value: Good Managers Use Training and Experience to Create Value for Owners

Magazine article Journal of Property Management

Pump Up the Value: Good Managers Use Training and Experience to Create Value for Owners

Article excerpt

Do well-trained property managers add value to a portfolio? Does good management translate into value? Of course it does, right? Why would we be CPMs, Candidates and ARMs if we did not believe our training and experience added value? But, do property owners believe this?

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The trend among many owners during the last few years has been to reduce staffing levels while hiring cheaper, inexperienced, minimally qualified property managers. Why? I think it is because these owners don't really believe or understand good management creates value. Too bad for them, because I know better.

Experienced, well-trained managers do much more than collect rent, prepare budgets and make sure the HVAC system is working. Those are minimal responsibilities that are carried out almost routinely. Good property managers control and reduce expenses with smart purchasing decisions, effective vendor contracts and prudent management of real estate taxes and utility consumption. A knowledgeable manager enhances income through effective billing and collection procedures, by creating new sources of revenue and providing good customer service. Satisfied tenants translate into renewing tenants and renewing tenants are a grand slam for owners. Not only is a renewal the least expensive leasing method, it also produces the highest total rental income.

If increasing income and reducing expenses is not reason enough to seek out and employ high-quality managers, consider this: a well-trained manager knows how to avoid litigation, serious loss and even bad publicity. …

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