Determining the Ability to Meet Owner Needs

Determining the ability to meet the owner’s expectations requires a thorough analysis of the property along with financial and market analysis, and a determination of the resources, risks and opportunities for the management firm.

1.  Research the property - The most comprehensive research of the property will reveal what it will cost to provide the services that the client either expects and/or needs.  Resources are:

• Info Guide
• Rent Roll
• Tour Site
• Interview
• Photos

2.  Evaluate costs - Any number of factors can add to the management costs of a property. Administrative and management costs rise for the following:

• Location more than 2 hours travel time
• No staff on site
• High number of rental occupants (residents or tenants)
• Higher costs based on property type (shopping center and office buildings compared to industrial properties)
• Commercial lease administration
• 24-hour a day residential management required
• History of rent collection problems/high turnover
• High crime areas, requiring additional security
• Degree of reporting and software requirements
• Number of owners and reports

3.  Evaluate Resources - Not every management firm can offer a full range of services. Although an owner may prefer to have the management firm provide all the services, it is not always wise or possible. If a firm lacks the required expertise, it is far better to outsource the task or partner, since most owners are more interested in the results rather than the means.

A determination that a client’s needs cannot be met due to timing, resources or expertise, or that the project requires additional or other resources, demonstrates professionalism in the client’s best interest.   Accepting a project should be a match between the need and existing services, resources and/or capabilities to service additional markets niches.  There are distinct advantages to serving new markets:

• Develops your special expertise
• Enhances your reputation
• Establishes your firm within a particular business community
• Distinguishes your firm from its competitors