Manager Labs – technology for (visionary) property & facility people.

There are business models in all shapes and sizes. There are retail stores, medical and legal practices, cleaning companies, general contractors, grocery stores, etc. So when you think about a business, how many business models do you know of where the business owner outsources the entire business to another party? For instance, if you visit your local grocery store, is it managed by a grocery management company? How about a retail store management company? So what makes the residential real estate investment business any different? Why are there so many property management companies and outsourced service providers to the property industry?

According to a colleague of mine, the answer is quite simple, “It is not easy, there is so much at stake, and there are many moving parts.” Also, when you think about properties as investments, there are often multiple partners and joint venture groups who own the assets. In those cases, the managing partner realizes they do not have enough time or expertise to do all of the functions required of them to maximize the value of the asset. That is what outsourcing offers.

As a property manager outsourced by these partnerships, the responsibility of managing that asset is crucial in so many ways. First of all you have been selected by the partner on the management of the asset. All of the actions you take as the manager or management company directly reflect onto the reputation of that partner or company that made the decision to hire you.

Next you have the individual people that make up the partnership. In each case, the goal of the investment with each partner is diverse. Whether there is one partner or 100, each one has their own individual investment objective. For instance, one partner may be investing because they have young children and the investment is intended to be a college fund. Another partner may be saving for their retirement. The point is that in managing the property there are many significant outcomes to decisions and actions of the property manager.

Remember, the actions you take need to be considered as part of a global picture. Each action impacts the value of the property. Now enter the customers. The actions of the property customers (aka tenants) also play a pivotal role in the value of the asset as well. For instance, if a tenant does not pay rent, the cash flow of the property is impacted. This is a business and the business must be financially healthy to exist. There are services and debts that the business is obligated to support as well. So if the rent is not collected in a timely fashion, there may be consequences to the service providers looking to be paid. The service providers are outsourced too. Those service providers need to be respected and considered as they are a vital resource to the property ecosystem and the operations.

The entire ecosystem of the property needs to flow in a healthy and respectful manner. If there are members of the ecosystem that do not respect the life cycle of the asset, there is imbalance. An imbalance is what causes tremendous pressure on the other members of the ecosystem. For instance, if a tenant does not pay, there is not enough cash flow to pay the electric bill. If the electric bill is late, there is a penalty. When a penalty occurs, it further erodes the income. When the income becomes eroded, other service providers suffer since the invoices cannot get paid on time. It is necessary to understand how all the actions of the parties involved will affect each other.

When issues arise, keep the ecosystem or big picture in mind. Each move matters and each party to the property ecosystem can make or break the healthy cycle. Hold every member of the ecosystem accountable. Follow up and follow through on everything! Make sure you have an excellent command of the property and your communication to all parties is crystal clear. As with all business habits, be fair and honest about how everyone must work together. If one party falls short of their obligation, be sure to put them on notice. Do not hesitate to follow the letter of the lease or contract or whatever you are obligated to enforce on behalf of the partners who own the property.

Being a property manager is exciting and rewarding, but it does require hard work and the ability to view the business from a holistic perspective. It can be a challenge to maintain the ecosystem, but as long as you’re always looking out for your partners’ (owners, tenants, and service providers) best interests, you will feel gratified about the work being done with the property. Your owners and investors will be pleased that you are increasing their properties’ value, and your tenants will be happy about their living situation.

“More content available at All Things Property Management by Buildium, industry leaders in Online Property Management Software.”

If I said it one time,  I said it a thousand times a day to my staff while in my days of onsite property management.

If I get hit by a bus…..

Everyday in my training to those on my team, I would repeat certain sayings that I felt were important to ingrain and teach those that I cared about or those that I felt had what it would take to become a good property manager or overall employee. One of my classics was …If I get his by a bus, the next guy will be able to…….

Well the other day I did get hit by a bus (sic) and it did not hurt, it was actually pleasant! The bus that hit me was not moving but parked in a rest area taking a break. I noticed a huge mural painted on the side that stated ‘surf and ride’, but I knew there were no “waves or surf” around there, so I was my normal, curious self and I interviewed the bus driver to find out what this message was about. What I learned was so very interesting. The twist is that the bus has free wifi for its passengers. They say that a picture is worth a thousand words so please view the bus photo in this article, which is a Peoria Charter Bus that travels between Champaign and Chicago, Illinois.

What a fabulous idea! A bus moving down the highway with wifi. How cool is that? I loved it. Of course it got me thinking about how neat it is when a business owner makes a decision to do something unexpected and innovative. The owner of this bus company believes that by providing wifi on his bus he betters his chances of getting you to ride his bus. This is not profound, it is simply good business.

Based on that concept, then why do we as property and facility managers not realize that by providing services, like wifi, or customer service online 24/7 or automated messages, or client document portals, that can really help grow our business? Why are we not running to get the services or subscriptions for our buildings and facilities? Is it us or is it the building owner? Who is really, driving the bus, to embracing technology in our world?

I find it amazing not to find automation or connectivity in every building or facility I visit. When I travel, I look for places with wifi. Why? Because quite frankly, I cannot work or play without it. Yes, I can use my smartphone as a hotspot now for my laptop, but there are times I need to have wifi. Where I work can change in a moment. I need to work where wifi exists, yet I trudge around looking for the service. IMHO nobody has grabbed this space yet (besides Starbucks, Panera, McDonalds) other than fast food, bookstores, airports, libraries, hotels, and (what is left?)….. No office buildings, retail stores, apartment communities, condominium buildings, medical buildings, and industrial complexes, have really embraced this yet. They are just not feeling the love for these services.

In our industry we have to realize that if a bus can roll down the highway at 65 miles per hour and offer FREE wifi service, should we as building managers embrace this for our clients and visitors too? It seems like a basic utility today, yet there are common areas throughout buildings all over America with no wifi, no online customer service, no 24/7 portals of information! It is the same old thing. Call the office between 9am – 5pm, or we will snail mail it to you or if you are lucky we can send it to you via email.

That spells o-p-p-o-r-t-u-n-i-t-y in my book! Maybe your property can make a statement or get exposure by offering FREE wifi or online everything, 24/7. Maybe your company can make a statement and offer automated services of the basic paper you are pushing now. These efforts can be turned into exposure or marketing events for your property in the marketplace. They say being 1st is so very important. Why not make your property or company step up and take that step?

Alright, so you do not want to be first. That is totally understood. But guess what? You are NOT first in the world, just first in one small aspect of one single industry. Banking has totally embraced ATM, digital reports, cell phone apps, paperless checks, debit cards, and a host of other customer service tools. The airlines are online for everything. You can see your loved one’s flight online and watch the plane in the air, 24/7/365. Almost every single retailer or product you purchase has online services. You are not 1st in the world, just in our small part of one industry.

Try it by taking a baby step. Take one horribly painful task that is repetitive and paper intensive and think of how you can do it without paper or online or via a software as a service application (SaaS). Think of a communication step that you can use with automation. Once you start the conversation in your building or at your company, it will start to gain momentum. I can promise you that once you and your staff get a taste of efficiency or streamline a process, they will never look back. The only complaint you will get is, ‘Why did we not start this sooner?’

If you want to discuss solutions and ideas or a vision to take for your property or company, email or call me and I will be happy to listen and then may be able to make suggestions for solutions that are at your fingertips NOW! Call 312.725.0060 or email Linda@ManagerLabs.com.