Guide to Assessing Your Property Management Company

1. Human Resources – Evaluate the current level of knowledge, experience and skills of your personnel.

• What is the overall size of your staff? How many property managers, administrative support staff, specialists (i.e., accounting, risk management, human resources, information technology) do you employ?
• How much depth of knowledge and experience does your company have in each type of property managed? If a key staff person leaves, is there someone else in the organization who could take over?
• Does your staff have adequate experience with a variety of property types? Do you have employees who could effectively manage additional property types?
• Do your property managers have adequate support staff?
• To what extent does your staff use technology to conduct business? Are they using technology effectively to increase their productivity? Do they require additional technology training?
• Do your property managers have the training and credentials necessary to attract new clients?

2. Current Client Base – Evaluate your current clientele.

• How many clients does your company serve? Does your company rely on one or a few large clients for the majority of its business?
• Within your geographic area, what percentage of the commercial property does your company manage?
• What is the overall scope of property managed (amount of square footage of office, retail and/or industrial space, number of multifamily rental or condo units)? In other words, what is the size of the portfolio managed? Which property types are managed within the portfolio?
• What is the profile of your client base?
• What is the overall level of client satisfaction with the services of your company? When was the last time your company surveyed its clients to determine their level of satisfaction?
• How do residents and/or commercial tenants feel about the services provided by your company?

3. Services Offered – Evaluate each of the services offered by your company from both a quantitative and qualitative standpoint.

• What services does your company provide to clients? (leasing, maintenance, asset management, brokerage, financing, tax valuation, etc.)
• What percentage of your clients use each of these services?
• What services does your company provide to residents and/or commercial tenants?
• What percentage of residents and/or commercial tenants use each of these services?
• What percentage of your company’s income is generated by each service?

4. Your Company’s Reputation – Evaluate your company’s reputation with existing clients, with residents and/or commercial tenants, within the industry, and among your competitors.

• Where is your organization viewed as most successful? Where is it perceived as needing improvement or lacking expertise?
• How well known is your company’s name and trademark within the real estate community? How well known is it among building owners and investors?
• To what extent does your company promote its services? What media are used to inform the market about your company’s services (newspapers, magazines, television, radio, meetings and conferences, brochures, public relations, community activities, etc.)

5. Financial Resources – Evaluate your company’s financial position and determine whether adequate funding exists to support growth.

• What is the amount of your company’s financial reserves?
• Has your company’s net profits grown or declined over the past five years?
• What size of a loan would you be able to obtain to finance your company’s expansion?
• What are your company’s financial reporting capabilities?
• What is the value of your company?
• What is the equity of your company?

6. Planning

• Is there a business plan in place?
• If so, is the plan current? When was it last reviewed and updated?