Property Management Activities & Responsibilities PDF

LESSON 2: PROPERTY MANAGEMENT ACTIVITIES Insurance AND RESPONSIBILITIES Supplies Contract services (cleaning, security, landscaping,...

LESSON 2: PROPERTY MANAGEMENT ACTIVITIES Insurance AND RESPONSIBILITIES Supplies Contract services (cleaning, security, landscaping, Property management is the daily oversight of etc.) residential, commercial, or industrial real estate by a third- Maintenance party contractor. Utilities Adding or improving resident amenities Property Manager plays a Vital Role in Property Preventative maintenance Management Activities Property management software  Generally, property managers take responsibility for day- Marketing and advertising to-day repairs and ongoing maintenance, security, and upkeep of properties. They usually work for the owners The responsibilities of a property manager generally of investment properties such as apartment and involve the following: condominium complexes, private home communities, Understanding state and national landlord-tenant shopping centers, and industrial parks. laws and regulations  Their main roles are to manage routine tasks delegated  As an investor, especially if you own multiple to them by the owners and to preserve the value of the properties in several different regions or areas, it can properties that they manage while generating income. be difficult to keep track of all the different landlord- tenant laws and regulations. A property manager can The responsibilities of a property manager generally help avoid potential legal headaches by taking care of involve the following: these regulations for you. Typically experts in the Screening potential tenants areas where they work, property managers are often Drafting, signing, and renewing leases on behalf of better equipped to deal with local laws and property owners regulations. Collecting rent Maintenance of properties, including landscaping and The responsibilities of a property manager generally snow removal involve the following: Arranging for necessary repairs to properties Marketing properties Supervising other employees The responsibilities of a property manager generally Handling taxes involve the following: Setting up and adhering to budgets for property TYPES OF PROPERTY MANAGEMENT maintenance Residential Property Management Residential property managers are typically hired for Property Management Budget rental properties, and they manage the rental process.  A property management budget is an analysis of the They can be hired to manage: income and expenses used to track a property’s financial Single-family homes situation and anticipate future expenses. Typically, Vacation rentals property managers begin the process of preparing their Multifamily homes annual operating budget a few months prior to the start of Town houses the upcoming fiscal year. Condominiums Apartments Below are list of potential revenue streams you may Manufactured homes incorporate into your property management operating Real estate-owned (REO) properties budget: Application Fees Commercial Property Management Late Rent Fees Commercial property owners have different needs from Laundry Income those who own residential property. Commercial property Parking Fees management can apply to: Pet Rent/Fees Public accommodations like hotels Early Lease Termination Fees Retail properties like malls, restaurants, and gas Property Damage Fees stations Resident Benefit Packages Office properties like real estate brokerages or doctors’ offices Below are list of the most common operating Co-working spaces where professionals rent work expenses you should include in your budget: space by the day or the hour Property taxes  a. Frequency: Establish how often each maintenance Industrial Property Management task should be performed (e.g., daily, weekly, Industrial properties that can benefit from management monthly, annually). include: b. Tasks: Define specific tasks for each asset, such as Heavy manufacturing facilities such as automotive cleaning HVAC filters or inspecting the roof. plants and steel mills 3. Assign Responsibilities: Light manufacturing factories such as food packaging a. Staffing: Designate team members or contractors Warehouses responsible for each maintenance task. Distribution facilities b. Training: Provide training to ensure that staff can perform tasks effectively. Special-Purpose Property Management 4. Document Procedures: There are also numerous types of property that don’t fit a. Checklists: Develop checklists for each type of neatly into the categories above, but that require maintenance task. management nonetheless. These include: b. Records: Maintain detailed records of completed Theaters tasks, including dates, issues identified, and Sports arenas corrective actions taken. Resorts 5. Review and Adjust: Senior care facilities a. Evaluation: Regularly review the effectiveness of the Schools and universities PM program and make adjustments based on Places of worship performance data and feedback. Examples of Preventive Maintenance Tasks MAINTAINING THE PROPERTY HVAC Systems: Change Filters: Replace air filters regularly to maintain Types of Property Maintenance air quality and system efficiency. Understanding the different types of property Inspect Components: Check belts, hoses, and maintenance is crucial for effective property refrigerant levels. management. Clean Coils: Remove debris from evaporator and 1. Preventive Maintenance; condenser coils. 2. Corrective Maintenance, 3. Routine Maintenance Plumbing Systems: Check for Leaks: Inspect pipes, faucets, and valves. PREVENTIVE MAINTENANCE (PM) Clean Drains: Regularly clean and clear drains to prevent Regular, scheduled maintenance activities performed to clogs. prevent equipment or system failures before they occur. Test Water Pressure: Ensure that water pressure is This involves routine inspections, servicing, and repairs. within normal ranges. Objectives: 1. Enhance Longevity: Electrical Systems: Extend the lifespan of property systems and equipment. Inspect Wiring: Check for frayed wires and loose 2. Improve Reliability: connections. Ensure systems operate efficiently and reduce the Test Circuit Breakers: Ensure circuit breakers are likelihood of breakdowns. functioning properly. 3. Reduce Costs: Replace Batteries: Change batteries in smoke and Avoid expensive emergency repairs and minimize carbon monoxide detectors. downtime. Roofing: Developing a Preventive Maintenance Program Inspect for Damage: Check for missing shingles and Steps to Develop a PM Program: damaged flashing. 1. Inventory and Assessment: Clean Gutters: Remove debris from gutters. a. Identify Assets: Create a comprehensive list of all Check Sealants: Inspect and reapply sealants around systems and equipment that require maintenance roof penetrations. (e.g., Heating, Ventilation, and Air Conditioning systems, plumbing, electrical systems, roofs). Tools and Technology b. Assess Condition: Evaluate the current condition Maintenance Management Software: and performance of each asset, and review Features: Use software to schedule tasks, track maintenance history. performance, and manage inventory of spare parts. 2. Create a Maintenance Schedule: Benefits: Automates scheduling, provides reminders, and analyzes maintenance data.  Diagnostic Tools: b. Analysis: Determine whether the problem is due to a Types: Tools such as thermal cameras, vibration minor fault or requires more significant intervention. analyzers, and multimeters help in inspecting and 3. Repair or Replacement: diagnosing issues before they become critical. a. Repair: Fix the malfunctioning component or system to Benefits: Enables accurate detection of potential restore normal operation. problems, allowing for timely interventions. b. Replacement: If repairs are not feasible, replace defective parts or systems. Measuring Effectiveness 4. Testing and Verification: Key Performance Indicators (KPIs): a. Testing: Verify that the repair or replacement has Downtime: Track how much time equipment is out of resolved the issue and that the system is functioning service due to failures. correctly. Maintenance Costs: Compare costs associated with b. Verification: Check that no additional problems have preventive maintenance versus reactive repairs. emerged. Asset Lifespan: Monitor the lifespan of equipment and 5. Documentation and Review: systems to assess the impact of preventive maintenance. a. Records: Document the corrective actions taken, including costs, time spent, and parts used. Best Practices b. Review: Analyze the incident to understand its cause Prioritize Tasks: Focus on high-impact systems and and to improve future maintenance strategies. components that are critical to property operations. Regular Reviews: Continuously assess and update the Types of Corrective Maintenance maintenance program based on performance and Emergency Repairs: feedback Definition: Immediate repairs needed to address critical Incorporate Feedback: Use feedback from maintenance failures that disrupt operations. personnel and tenants to improve processes and address Examples: Fixing a burst water pipe or repairing a failed emerging issues. HVAC system during extreme temperatures. TAKE AWAY Deferred Repairs:  Implementing a robust preventive maintenance program Definition: Repairs that are not urgent but are scheduled in real estate management is crucial for maintaining the for later due to non-critical nature. condition and value of properties. By systematically Examples: Repairing minor leaks or replacing worn-out scheduling maintenance tasks, using the right tools, and fixtures during off- peak times. measuring performance, property managers can effectively prevent issues, reduce costs, and enhance Planned Repairs: tenant satisfaction. Definition: Repairs scheduled in advance based on prior knowledge of issues or predicted failures. CORRECTIVE MAINTENANCE (CM) Examples: Replacing components known to wear out The process of repairing or replacing equipment and over time during routine maintenance periods. systems after they have failed or malfunctioned. This is a reactive approach, dealing with problems as they occur. Tools and Technologies Objectives: Maintenance Management Software: 1. Restore Functionality: Quickly return systems and Features: Software solutions help manage maintenance equipment to normal operation. requests, track repair progress, and maintain inventories. 2. Minimize Downtime: Reduce the time systems are out Benefits: Enhances the efficiency of managing corrective of service to minimize impact on property operations maintenance tasks, provides real-time updates, and helps 3. Control Costs: Manage repair costs effectively and analyze maintenance data. prevent further damage. Diagnostic Tools: Process of Corrective Maintenance Types: Tools like thermal imaging cameras, vibration Steps in Corrective Maintenance: analyzers, and millimeters assist in diagnosing and 1. Failure Detection: identifying issues before they escalate. a. Monitoring: Use sensors, alarms, or manual Benefits: Accurate diagnosis leads to more effective and inspections to detect equipment or system failures. timely repairs. b. Reporting: Ensure tenants or staff report issues promptly to facilitate a quick response. Challenges and Considerations 2. Diagnosis: Downtime: a. Inspection: Conduct a thorough inspection to identify Issue: Corrective maintenance can lead to significant the cause of the failure. downtime, affecting tenant satisfaction and operational efficiency.  Solution: Implement strategies to minimize downtime, 4. Document Procedures: such as having backup systems or spare parts readily a. Checklists: Develop checklists for routine available. maintenance tasks to ensure consistency. b. Records: Keep detailed records of completed Cost: tasks, including dates and observations. Issue: Emergency repairs and replacements can be costly 5. Review and Adjust: compared to preventive maintenance. a. Evaluation: Regularly review the effectiveness of Solution: Balance corrective maintenance with preventive the maintenance program and adjust as needed measures to control costs effectively. based on performance and feedback. Best Practices Examples of Routine Maintenance Tasks Prioritize Repairs: Address the most critical issues first to HVAC Systems: minimize operational disruption. Filter Replacement: Replace air filters regularly Improve Response Times: Streamline procedures for (typically every 1-3 months) to maintain air quality and detecting and responding to failures. system efficiency. Analyze Incidents: Use data from corrective maintenance Coil Cleaning: Clean evaporator and condenser to identify patterns and improve preventive strategies. coils to ensure proper heat exchange. System Checks: Inspect and test the HVAC system TAKE AWAY to ensure it is functioning correctly.  Corrective maintenance is a crucial aspect of property management that involves addressing and repairing Plumbing Systems: failures as they occur. By effectively managing corrective Inspect for Leaks: Check pipes, faucets, and valves maintenance, using the right tools, and implementing best for leaks and address any issues. practices, property managers can minimize disruptions, Drain Cleaning: Regularly clean drains to prevent control costs, and maintain the functionality of their clogs and backups. properties. Water Pressure: Test and adjust water pressure as needed. ROUTINE MAINTENANCE (RM) Routine maintenance refers to the regular, scheduled tasks Electrical Systems: that keep property systems and equipment in optimal Check Circuit Breakers: Regularly inspect circuit working order. This includes minor repairs, inspections, and breakers to ensure they are functioning properly. upkeep tasks performed on a daily, weekly, monthly, or Replace Bulbs: Replace burnt-out light bulbs and seasonal basis. ensure lighting systems are operational. Objectives: Inspect Wiring: Check for signs of wear or damage Preventive Care: Avoid major repairs by addressing in wiring and connections. minor issues early. Operational Efficiency: Ensure that all systems and Landscaping: equipment function smoothly. Lawn Care: Mow the lawn, trim shrubs, and perform Tenant Satisfaction: Maintain a comfortable and seasonal planting and weeding. functional living or working environment. Irrigation: Check and maintain irrigation systems to ensure proper watering. Steps to Develop a Routine Maintenance Program Seasonal Upkeep: Address seasonal needs such as 1. Inventory and Assessment: leaf removal or winterizing plants. a. Identify Assets: List all systems and equipment requiring routine maintenance (e.g., HVAC, plumbing, Tools and Technologies electrical, landscaping). Maintenance Management Software: b. Assess Needs: Determine the specific maintenance Features: Use software to schedule tasks, track needs and frequencies for each asset. maintenance activities, and manage work orders. 2. Create a Maintenance Schedule: Benefits: Streamlines maintenance operations, provides a. Frequency: Establish how often each maintenance reminders, and offers data for performance analysis. task should be performed (e.g., daily, weekly, monthly). b. Tasks: Define specific tasks, such as cleaning gutters Checklists and Forms: or checking fire extinguishers. Types: Utilize checklists and forms to standardize routine 3. Assign Responsibilities: tasks and ensure completeness. a. Staff: Assign maintenance tasks to in-house staff or Benefits: Helps maintain consistency and thoroughness contractors. in routine maintenance. b Training: Ensure staff are trained to perform routine tasks effectively.  Measuring Effectiveness Key Performance Indicators (KPIs): Task Completion Rate: Monitor the percentage of scheduled maintenance tasks completed on time. Cost Control: Track costs associated with routine maintenance to ensure they are within budget. Tenant Satisfaction: Gather feedback from tenants regarding the condition of property systems and overall satisfaction. Best Practices Consistency: Ensure routine tasks are performed consistently according to the schedule. Communication: Maintain open communication with tenants regarding maintenance schedules and any disruptions. Feedback: Collect feedback from tenants and maintenance staff to continuously improve the routine maintenance program. TAKE AWAYS  Routine maintenance is a critical component of property management that ensures the ongoing functionality and attractiveness of real estate assets. By implementing a well- structured routine maintenance program, using the right tools, and following best practices, property managers can effectively maintain their properties, enhance tenant satisfaction, and control maintenance costs.