DUTY CALLS: WHAT EXACTLY DOES A PROPERTY MANAGER DO, & WHY YOU SHOULD HAVE ONE. 1. Management of Condo/Strata Corporations 4 2. Management of Revenue Generating Properties 6 3. Management of New Developments and Start-ups 8 4. What Makes a Good Property Manager? 10 Patience and Tact 11 Communication 12 Organization 13 Multi-tasking and Flexibility 14 Time Management 15 Wide Variety of Expertise 15 Education & Training 16 5. Why do I Need a Property Manager? 17 www.larlyn.com © 2013 Larlyn Property Management Ltd. 2 OVERVIEW: A property manager or management company essentially gives advice. The client makes decisions based on the property manager’s advice and analysis of other important criteria. The option is then available to hire the manager to carry out those decisions. Property managers or companies can work with a variety of clients including: • Condominium / Strata Boards of Directors • Investors of Residential and Commercial Revenue Generating Properties • Developers of New Properties • Owners, Boards of Directors and Residents of Not for Profit Properties Why do clients hire property managers – the answer is simple: to save time, money and hassles. Property managers can increase property values and ensure each investment property or community complies with the applicable provincial Residential Tenancies Act, Condominium Act and similar legislation. They ensure applicable employment law as it relates to site staff, fire safety and other legislation surrounding the operation of each property or community is adhered to. Investing in property (whether it be single units within a corporation, rental pools or entire buildings and complexes) and managing that property is time consuming and can be expensive if the right decisions are not made. Trusting in an expert or team of experts just makes sense. www.larlyn.com © 2013 Larlyn Property Management Ltd. 3 PART 1 MANAGEMENT OF CONDO / STRATA CORPORATIONS In the event that a corporation is operated with a management contract, many responsibilities of the Board of Directors will be performed by the property manager. A full service management contract may include: • Collection of common element fees, • Safeguarding the cash assets of the • Keeping the records of the corporation parking, rental and other receipts of the corporation including the meeting minutes, corporate corporation registers, accounting and maintenance • Recruitment, training and supervision of records, etc • Maintenance of account receivable personnel to provide for the day-to-day records and collection of overdue maintenance • Assisting with the preparation of notices, receivables proxies and agendas for the Annual • Arranging for preventative maintenance General Meeting (AGM). • Authorization of the completion of and engineering services maintenance and the receipt of services • Attending all Board Meetings, assisting in in order to maintain the common • Arranging for insurance for the common the meeting as required, keeping minutes elements property and ensuring all tasks are completed • Payment of invoices The responsibilities of the property manager are established by the management contract. As in any service industry, there is a correlation between the number and types of services which are included in the contract and the contract price. www.larlyn.com © 2013 Larlyn Property Management Ltd. 5 PART 2 MANAGEMENT OF REVENUE GENERATING PROPERTIES A property manager is like a silent partner behind the scenes managing the real estate investment and increasing its value. Services that may be offered by Property Management firms include: • Marketing the property to prospective • Preparing budgets and accounting tenants and then managing inquiries, reports measuring and tracking showing the property and processing performance and cashflow applications • Managing Government and tax reporting • Assisting with tenant turnover as tenants and paperwork move in and out • Overseeing human resource tasks • Arranging routine and emergency maintenance and repairs Some firms may also assist with strategic planning and offer assistance and advice • Negotiating insurance with the following: • Keeping property records and • Due diligence and market research documents • Curb appeal improvements • Collecting rent from tenants and disburse rental revenues to investors • Contract tendering, engineering, project management and consulting • Paying operating expenses www.larlyn.com © 2013 Larlyn Property Management Ltd. 7 PART 3 MANAGEMENT OF NEW DEVELOPMENTS & START-UPS www.larlyn.com © 2013 Larlyn Property Management Ltd. 8 Involving a competent property manager who offers expert value added consulting services is sure to increase return on investment. From the project’s early stages of organization & property assessment, through feasibility analysis, identifying risks and opportunities to pre- construction planning and budgeting, help is available every step of the way. During construction and as the project nears completion readying for sale, assistance with consulting, financial services, site plan reviews, architectural/mechanical plan reviews, association documents review periodic reviews during construction, staffing/preparation for opening and training and communication for developers, investors, sales associates and boards of directors can be invaluable. And let’s not forget Investor Services providing market surveys for rental rates, operating budgets and complete rental management services. When construction is complete, its time for a property manager to officially take the wheel making the new development a continued success. Finding experienced experts who will support the new owners, residents and tenants will ensure YOUR customers are well taken care of so you can move on to the next successful adventure. www.larlyn.com © 2013 Larlyn Property Management Ltd. 9 PART 4 WHAT MAKES A GOOD PROPERTY MANAGER? www.larlyn.com © 2013 Larlyn Property Management Ltd. 10 Most managers take care of portfolios of properties, not just a single client. The career can be demanding and challenging but very positive and rewarding if they master the skills required to truly enjoy their job and facilitate their success, including: PATIENCE AND TACT Properties are homes for work and play. They are buildings where people live and have emotional attachments that go beyond contracts, bricks and mortar. Each owner, investor, tenant, vendor and team member believes their issues are a priority. A property manager must be good with people, have the ability to listen and communicate diplomatically. www.larlyn.com © 2013 Larlyn Property Management Ltd. 11 COMMUNICATION Giving advice and managing the investments of others requires a property manager who excels at communication. Good communication is woven through the success of everything a property manager does. A continuous challenge of clients expecting instant responses must be addressed. Technology fuels these expectations but good communication setting up reasonable expectations can prevent disappointment. Property Managers are also communicating consistently with clients, suppliers, owners, tenants and team members, just to name a few. Whether it is in writing or verbally, communication must be tailored to suit the various audiences, choosing method and tone accordingly. Clear and concise communication is imperative with creative solutions to combat barriers like language, time, and physical disabilities. Determining preferred style of communication at the onset of each relationship can go a long way. www.larlyn.com © 2013 Larlyn Property Management Ltd. 12 ORGANIZATION Different year end dates means performing similar tasks at different times of the year. Planning in advance is required so information can be gathered and analyzed and proposals can be made at the right time. Scheduling multiple meetings with multiple clients makes organizational skills essential. Each meeting also comes with the tasks of communicating information in advance and following up after all within varied deadlines. Information shared must be organized so all parties are clear and assigned tasks can be completed to keep the flow of information smooth. Without superior organizational skills, tasks and responsibilities can fall between the cracks and misunderstandings can occur. Declarations, bylaws, rules, regulations, legislation… oh my! While it may not be possible to remember everything about each client, access to organized information is very important. Having highlights of each document quickly accessible is invaluable. www.larlyn.com © 2013 Larlyn Property Management Ltd. 13 MULTI-TASKING & FLEXIBILITY The ability to quickly switch from one task to another is a pre-requisite. Scheduling is helpful but it is extremely common to be interrupted by emergencies and urgent client requests. As much as a good schedule can be used as a starting point, emergencies arise, circumstances change and tasks must be re-prioritized constantly. Property Managers wear many hats - their business cards could be full of various titles including Site Inspector, Service Coordinator, Contract Negotiation, Collection Agency, Bylaw Enforcer, Professional Adviser, Mediator, Community Liason, Team Leader, Publisher and most important of all – good neighbour! They are, after all, in charge of making people’s homes a better place to live and work. www.larlyn.com © 2013 Larlyn Property Management Ltd. 14 TIME MANAGEMENT 24 hours in a day is never enough. Deadlines are important because information and advice must be presented then