10A — November 22 - December 5, 2013 — Professional Services — Mid Atlantic Real Estate Journal
www.marejournal.com
P roperty M anagement
By Brent Miller, CCIM, CPM, Sperry Van Ness – Miller Commercial Real Estate The benefits of professional property management C ommercial real estate properties and portfo- lios that are actively missed or miscalculated rent increases and failure to pass on all maintenance charges that are the tenant’s respon- sibility.
tion that money can be saved by not paying third party management fees. In reality, professional management is a value added service that will enhance overall property returns. As an owner of commercial real estate, unless you’re a very large and sophisticated commercial enterprise, at- tempting to do it yourself or to hire internal staff is not only inefficient and very expensive, but is often short sighted. You see, the right question to ask is not can you manage your own portfolio,
but should you? 1. Time: Is managing prop- erty the best use of your time? Do you have better things to do, or would it take you lon- ger to manage your property than it would a professional manager? 2. Competency: Profession- al managers are immersed in commercial real estate on a daily basis. There may be missed opportunities that end-up leaving money on the table. 3. Cost: Many do-it-yourself owners end up leaving money on the table in the form of
will collaborate with you to de- termine how your properties should be positioned relative to current market trends and competitive properties. They will advise on issues that may lower operating expenses, in- crease NOI or add new sources of NOI. 2. Cost Savings – Manage- ment firms use the aggregate size of their portfolios to ne- gotiate prices, to assure high quality, and rapid response time. They have greater scale than the typical property own- er and can deliver bottom line savings as a result thereof. 3. Domain Expertise - Pro- fessional property manage- ment firms who have invested in state of the art technology, professional education and the newest tools will provide a far better solution to improv- ing the property performance than an in-house attempt. 4. Regulatory & Compliance – Professional management firms are familiar with state and local municipal codes and regulations as well as with federal laws (ADA, EPA, DEQ, etc.) which may impact your property. 5. Responsiveness – Do you really want to deal with the phone call that comes in the middle of the night or when you’re in a meeting, out with your family, on the golf course, etc.? Professional manage- ment firms are on call 24 hours a day - 7 days a week. 6. Vendor Management – Using your management firm as a single point of contact to manage vendors is tan- tamount to found time. Not having to deal with the brain damage of managing multiple vendor relationships is worth its weight in gold. Bottom line…you can go it alone and convince yourself that you’re saving money and spending your time wisely and efficiently, but it is precisely this type of thinking that your competition is hoping you em- ploy. Any reasonable litmus test will reveal that profes- sional management exists for a reason. It improves the lives of property owners, and puts money in their pocket at the same time. Brent Miller, CCIM, CPM is managing director and senior advisor with Sperry Van Ness – Miller Commer- cial Real Estate, Salisbury, MD. n
managed not only perform better on an o p e r a t i n g basis, but in most cases, they y i e l d more at dis- position as well. So why
The fact of the matter is that the professionals you select to represent your in- terests work for you. You are still in control, you call the shots. The following points are just a few representative ex- amples of how you can benefit from the use of professional management firms: 1. Strategic Planning – Pro- fessional management firms
Brent Miller
is it that so many commercial real estate principals attempt to manage their own portfolio? The most common reason usu- ally boils down to the percep-
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