Property manager is a visit card of the property owner

26Nov

The Lessee often identifies the manager of property with its owner, thus the responsibility of the property manager is of larger scope than can be first guessed.

Poorly provided property management service means a direct impact on the cash flow and success of leasing out the object.

“Commercial property management is not just the maintenance of property as often believed,” Ülari Niinemägi, development manager of the Baltic largest commercial property management company BPT Real Estate Group, emphasized at the Conference of Commercial Property Management of the portal kinnisvarauudised.ee

To create more value in commercial property management the content and scope of service needs to be increased. “The Estonian market is still not fully developed as to commercial property management. This means that the market players have different concepts regarding management service and thus existing wrong expectations and misunderstandings on the content of property management service should be overcome, “ Niinemägi told.

According to him the market growth and service development is wider lead by proficiency and specialization. The increase in number of professional investors who devote to the investments of commercial property and know what should be outsourced from the property management market is necessary. “It is self evident and usual for such investors that the conclusion of lease contracts, cash flows, financial management, real estate development activities, construction management and so on are trusted to the property manager,“ Niinemägi explained.

Regarding the internationally recognized, modern commercial property management service the keywords at the global market such as cash flows, occupancy, increase in property value, wide scope of services and key performance indicators. “These terms occur too rarely in the everyday talk of the property managers, but too much in the worrying thoughts of the investors who should today deal with these issues,“ Niinemägi told.

The responsibility of the manager is of larger scope than it seems

According to Niinemägi the owner and manager of real estate are the equivalents of each other when looking at it in the position of the lessee, i.e. user of the property. Thus the scope of responsibility is larger than it seems at first. “Poorly provided management service means a direct impact on the cash flow and success in leasing out the object,” he noted and added that the responsibility and authorities of the property manager are limited, but the consequences are very influential at the same time. “On the other hand the property owner can disguise its deficiencies and inexperience with the help of the good management service. This is also an important aspect,“ he stated.

Full article (in estonian) can be read: http://kinnisvarauudised.ee/article/2015/10/22/arikinnisvara_haldamine_on_eestis_valja_kujunemata_teenus