Management Considerations
The Client
Unless the client has become a property owner by default, such as inheritance or foreclosure, clients have a personal and financial reason to invest. Typically they want to preserve or make money, and depending upon the goal, there is some idea of what resources may be required or dedicated. Investment funds, tax status, and liability are key considerations when entering into property ownership.
In any case, clients have a broad range of market and property management knowledge due to experience. The client’s philosophy, interest, knowledge, and ownership type may prevent or enhance the client’s active role in the property. “Hot buttons” or “pet issues,” which are special issues of interest or concern, often keep a client more involved. The information that contributes to understanding or initiating discussions about the client’s expectations can be grouped into the following categories:
- Goals: the ultimate payback or tangible/intangible reward
- Ownership type: legal structure for liability, tax status, influence
- Role: presence and participation
- Approach: client perspectives and interaction
"Getting the job done” is not a problem. The ideal, though, is to step back and proactively analyze a set of circumstances to ensure that all needs are accounted for.
Click here to view management considerations based upon the individual client.
Comments
The ability to truly understand what the Owners goals are and how to achieve them are vital to fostering a long term relationship that will grow and potentially lead to additional relationships. Property managers need to stop the idea that property management is a commodity. Property management should be viewed as a customized real estate investment engineered to satisfy the owners specific objectives.
Owner's objectives are the most important element of managing investment properties. This article just demonstrates how important it is.
The goals and objectives established between the client (owner) and agent (property manager) to satisfy the details within the management contract. I agree with Lori that although the process seems relatively simple, the process is often overlooked or in my perspective misunderstood between both parties.
Being able to understand the Owners objectives is critical to the Managing Agent's success. This seems so very simple, but a step that is often overlooked.
- Lori Burger | Flag this comment for review