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What Does Property Management Include?

What Does Property Management Include?

Real estate management is a complex process to improve the efficiency of a commercial real estate object, its maintenance and modernization. Proper placer property managment is able to extract the maximum benefit from the object and bring profit to the owner, as well as plan the correct modernization to increase this profit.

Property management: objects and participants

Property management is one of the varieties of cooperation. The procedure involves the following persons:

Property owners.



Realtors, agents, brokers or other intermediaries,

Representatives of state bodies.

Commercial real estate management for America is still a fairly new type of business relationship. The most widespread direction has received in the hotel industry.

You can order the management of real estate objects from specialized companies that have the necessary arsenal of tools and sufficient experience to work with a particular object. In the field of real estate management, important factors are the type of object, its location, status, and place in the infrastructure.

Depending on these factors, a management and development model is chosen. If the property does not yet have a certain status and is in the stage of newly built, it can be adapted to any format that is chosen taking into account the maximum benefits for the owner.

Stages of property management

Management of real estate objects can be carried out at any stage of the object’s existence. Each stage has its own nuances, terms, technologies. There can be 5 such stages:

Pre-project — market analysis, creation of an object strategy, choice of its type, investment analysis.

Design – drawing up a project, developing estimates and analyzing financial costs, planning construction dates.

Construction — construction of an object, improvement of adjacent territories, engineering communications, inclusion of an object in the infrastructure.

Operational — full-fledged legal, physical and functional existence of the object.

Final – demolition or reconstruction of the object, the elimination of its original functions.

At the operational stage of real estate management, it is possible to receive the first profit. Until then, funds are only being spent. At the operational stage, the priority tasks are the maintenance of the facility in good condition, its constant maintenance, profit generation and modernization.

All stages of real estate management are accompanied by documentary recording of expenses and profits. The owner of the object regularly receives financial reports and can submit his wishes for the development of the object.

Property Management Methods

The following real estate management technologies are distinguished:

Property management for profit.

Real estate project management at the stage of its design and planning.

Management of investment assets to create a financial portfolio of the object.

Management of technical operation and sanitary-economic maintenance of real estate.

The need for property management rarely arises for a small hotel or hostel. In these cases, it makes no sense to involve external specialists. The larger the object, the more it needs professional outside help. Even if the object is unprofitable, a good company will be able to quickly turn it into a plus in terms of income. The management company solves actual problems much better:

Receiving income.

Cost reduction.

Extension of the service life of the object.

Work with regulatory authorities.

The interaction between the owner and the management company can be built on different models. In most cases, all legal issues are decided by the management company. It can be entrusted not only with the maintenance, but also with the maintenance of the object. If we are talking about a hotel, then this includes the preparation and organization of the work of staff, the formation of all services, and reporting.


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