What makes good property management so important?
What makes good property management so important?
In a market experiencing rapid growth like Phnom Penh, professional property management can make a project standout. Experienced buyers, occupiers and developers recognise good property management is vital to maximise and sustain the value of an asset as well as promote the building’s image, reputation and value proposition through the maintenance of facilities and delivery of high quality services through the employment of industry best practices which enhance the building’s environment.
In an increasingly competitive market in which new buildings are being launched and delivered, in order to ensure the success of a project it is important for the developers/landlords to be market driven, flexible and take a holistic customer centric approach. A common mistake of being too product driven, adopting a build it and they will come mentality, can result in a lack of foresight on the handling of property management services, which in turn, can weaken the confidence of tenants and buyers as they have an increasingly wide selection of building options to choose from.
At CBRE Cambodia, we take a tailored approach to property management services, building a bespoke package that fits our client’s needs and that of their property as closely as possible. Expert market and customer knowledge must combine within a property management team built specifically to meet the needs of the building stakeholders. Good property management aims to reduce operating costs and maximise revenue without compromising either the building’s integrity or by weakening the services and facilities provided.
Developers who consider property management from an early stage in the development process are able to avoid design flaws and optimise space usage. This will usually involve property management consultancy by an experienced team who will review the space layout and technical design of the building including the parking and traffic circulation, mechanical and electrical systems and common areas with the aim of optimising the use of resources, reducing waste and minimising excess construction time that can lead to budget over-runsand construction delays. If implemented at an early stage the consultant has time to work with the project team to identify and solve potential problems, or create a work-around in order that they are prepared and able to deal with any issues upon completion.
Many developers/landlords rely on guesstimates of management fees or try to benchmark with other developments which can often lead to insufficient income to cover operating costs. This results in poor standards of property management and dissatisfied customers. Developers can avoid this scenario by seeking advice to analyse and estimate operating costs and revenue streams through the preparation of operating budgets and the calculation of realistic and sustainable management fees. Accuracy in service charges should leave buyers, tenants and developers with no nasty surprises such as operating budget deficits which can lead to fee increases and/or reduced levels of service.
Overall, property management is based on the ability of the managers to build long term, mutually beneficial relationships and provide dedicated, responsive and professional property management teams to ensure the success of the project, thereby maintaining its value including its financial worth over the long term. For more information about property management contact CBRE’s dedicated property management Team by email at david.brunt@cbre.com or visit www.cbre.com.kh.
