Investing in Facility Management: What You Get

Property-management firms can offer a sense of security to a business owner. A reputable management company should be familiar with all landlord-tenant laws, zoning codes, permit requirements, etc., that affect your facility. The knowledge of these details will keep your business from incurring unnecessary fines and legal fees.

In addition, finding a property-management company that offers an errors and omissions policy will protect your business if the management company fails to perform contracted services. For example, if a property-management firm fails to pay your facility’s personal property tax as outlined in its contract with you, then you have grounds to enforce upon them any fees you incur because of their error.

In addition to handling the daily operations of your facilities, many property-management companies also offer consulting services such as:

• Operations manuals
• Facility evaluations
• Property valuation
• Property analysis
• Due diligence studies
• Market feasibility studies
• Manager training
• Site design
• Unit mix recommendations
• Store audits
• Real estate brokerage/assistance selling your facility
• Financial analysis
• Market analysis

Consulting services are usually contracted on a one-time basis, whereas property management entails continuing responsibilities. If you find that you need a combination of property-management and consulting services, you may be able to create a customized package with your provider to accommodate all your needs.

The key to choosing and maintaining a profitable and effective property-management program is to stay in communication with your provider. The clearer your goals and expectations are to your provider, the easier it will be to meet them. Be clear from the beginning and look for the company that is interested in customizing services to keep you happy.