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TOP FIVE TIPS FOR SUCCESS IN PROPERTY MANAGEMENT

Four of the industry’s best property management companies provide their top five tips to achieve success in the retail, office, industrial and multifamily markets. 
Compiled by Nellie Day

By John Guardiola

#1: Manage A Property Like You Own It
You can’t effectively manage a property unless you think and act like an owner. Aligning the interests of financially responsible institutional ownership with a fee-driven management team is perhaps the most critical point where good property management succeeds or fails. Understand the real goals of institutional real estate owners by focusing on their specific investment objectives – only then can you hope to deliver the right operational efficiencies and enhance asset value.

#2: Treat All Properties With The Same Level Of Attention
Successful property managers are prepared to deliver best-in-class services regardless of property type, quality of property or location. While there may be slightly different tactics employed in day to day management of Class A commercial office buildings, retail centers and multifamily properties, providing a uniform, high level of service that puts customer satisfaction as the No. 1 priority will deliver ongoing success.

#3: Don’t Skimp On Manpower
There’s no way around it: property management is a labor-intensive business. Use an organized, full-service team approach to cover various regimens like property management, financial management, construction and project management, marketing and real estate law. When all of these functions work together it is easier to achieve exemplary property management service levels across the board.

#4: Be A Hands-On Manager
Having the right staff is just one part of the equation. Manpower means nothing if it isn’t being channeled in the right places and the assignment constantly reviewed to see where things could be done better and to greater effect. A full-service team of highly qualified professionals at each property, as well as proactive oversight and involvement at the corporate level, ensures hands-on property management at its best.

#5: Be Green!
Probably the biggest change to come to property management in the past 50 years is the emphasis on sustainability and environmental responsibility. This is for good reason. Done right, energy efficiency can be a core driver of both short- and long-term cost reductions for owners, keeping a property viable into the future in a highly competitive market. However, “greening” can be a minefield in which owners get trapped into pursuing expensive programs that don’t deliver economic results relative to their property investment. Having the right property manager in place, with the right understanding and approach, can result in a sustainability plan that systematically achieves results in a building or across a portfolio.

MULTIFAMILY
By Tina Makssour

#1: Consult Replay Footage
In football, instant replay is used to show a point in the game that was important or unclear when first watched live. Multifamily operators can do the same with their leasing team by using video shops. From a coaching standpoint, video shops are much more effective than written shops. With written shops, associates can “check all of the boxes” that may be required to score well; however, when watching a video recording of that same interaction, it shows exactly how the leasing staff member completed the objectives. It is easy to see whether the associate demonstrated warmth, enthusiasm and intelligence, or was simply “going through the motions.” Video shops can also reveal distracting mannerisms that associates might not be aware of, such as fiddling with keys while speaking or flipping their hair.

#2: Feed Associates A Steady Training “Diet”
For training to be effective, it must be consistently delivered in small, manageable increments. We want to provide new skills, tools and ideas for success — but must do so without overwhelming our associates. Property managers can achieve this by breaking training classes into tolerable increments and developing curriculum that fosters individual learning paths.

#3: Use Strategic Play-Calling To Keep Associates Focused
To reach associates, we must compete with a wealth of distractions. As a result, training needs to be designed to cut through the static — learning programs must focus on engaging and energizing associates through creative, yet strategic means.

#4: Inspire Some Friendly Competition
Sales motivators and contests are excellent ways to target specific areas of operations and achieve measurable results — incentives and friendly competition with sister properties will inspire teams to achieve beyond the status quo.

#5: Start With A Great Draft Pick
Training will develop and refine your associates’ skills, but you want to start off by recruiting the best talent around. The ultimate goal is to build a foundation of associates who bring their unique genius and personality to their community and position — pre-hire assessments and structural behavioral interviewing are extremely helpful in ensuring property managers accurately identify, evaluate and hire top talent into their organization.
— Tina Makssour, vice president of performance, Alliance Residential Company

By Pat McGinley

RETAIL

#1: Know Your Owner

Every owner’s mindset is different, and so are the goals and objectives for their assets. Do you know their hold/sell timeline horizon? Their ability or willingness to invest in property and tenant improvements? Their capital structure? If not, find out.

#2: Do The Swot
When becoming involved in a project, it is critical to know where that asset sits from a situational analysis standpoint. A SWOT (strength, weakness, opportunity, threats) analysis defines that position so that a property manager can then build on strengths, minimize weaknesses, capitalize on opportunities and prepare for threats.

#3: Dwell In The Past
Asset managers must know the history of their asset before they can create a roadmap for its future. Review operating statements, budgets and other key property documents to determine what has occurred in a property’s past. Consider occupancy, tenant sales history, common area maintenance costs and recapture percentages. Then meet with vendors to evaluate ways to minimize costs and maximize efficiencies. Finally, meet individually with merchants to gain their perspective and become a part of their business plans.

#4: Plan for the Future
Armed With In-Depth Property Knowledge, Asset And Property Managers Can Now create a business plan with property-specific leasing strategies and a management plan that maximizes NOI. Include a leasing program for current vacancies and for tenants with leases expiring in the next two years. Create and follow a tenant mix analysis that ensures space is filled with merchants that will be accretive to the overall success of the center. Emphasize constant communication and relationship building with vendors so that you are enhancing efficiencies and lowering NNN costs, which will ultimately increase rent. Also, set aside funds for a marketing plan. Even a very small marketing budget can enhance the traffic at a shopping center and, therefore, increase tenant sales. Community-oriented performances, direct mail pieces and onsite graphics are affordable initiatives that can make a noticeable, positive change.

#5: Measure Success
The most important part of any plan lies in monitoring results. Therefore, as you plan, build in goals and mini goals that you can track very closely to make sure your collective ship is going in the right direction. In our experience, goal tracking should occur no less than once per week during project takeover. Thereafter, bi-monthly or monthly meetings or conference calls are usually sufficient to track success.

INDUSTRIAL
By Eileen Conn

#1: Keeping Up Appearances
Getting the best tenants and commanding the highest rent is a primary goal of property management. It starts with a sharp-looking building that has strong curb appeal. It is very important to keep the structure, landscaping, common areas and overall appearance in good, clean condition. You only get one chance to make a first impression with potential tenants.

#2: Handling Vacancy–Pro-Forma Goals
Owners should create pro-forma goals for tenancy requirements and aggressively market space to logical tenants that meet those goals. Potential tenancy drawbacks, as well as advantages, should be considered when marketing the property. For example, large, single-tenant situations are on the surface favorable, however, there is also financial risk associated for an owner should a tenant unexpectedly vacate due to bankruptcy or going out of business. Can the owner take that risk? External economic forces have a gigantic impact on industrial property, more so than retail or office space. Aggressive marketing and leasing of vacant or soon-to-be vacant space to the right tenants play a vital role in the management process.

#3: Go Green Or Greener
Being green is always a consideration when it comes to managing industrial property. Even modest changes to greener practices can save facility costs and be eco-friendly. We recommend starting out with an energy audit or benchmarking program. Looking into a cool roof system, switching to energy-efficient lighting, taking advantage of other energy saving incentives, and leveraging technology to support green products or processes are all ways to go green and save. It also helps to work with the tenants to incentivize them with the potential savings from which they will benefit. Taking the time to explore and execute green initiatives will improve the property’s overall appeal and value for both tenants and owners.

#4: Do Facility Tours To Quickly Identify Issues
If an industrial building has any hazardous substances in it or moving through it, you should conduct a tour at least every 12 months at the very minimum. It is key to understand the tenant’s business practices and work as a team to help ensure the necessary steps are being taken consistently to protect the property. It’s also a good idea to keep a safety log and update it regularly. Documentation/forms can also be added to the lease to ensure the information is being provided by the tenant.

#5: Know Your Tenant Base
It is important to continually track the tenant base within a particular area or submarket. Understand why they are there and what they are using the facilities for. It is good practice to keep complementary and compatible uses next to one another (think of visitors, traffic, noise, smells, waste, parking, loading, hours of operation, etc.) and to understand the configuration of the leased space and dock locations. Ask the questions: Will a tenant have more loading dock needs than another? Will a tenant have more employees and shift changes than another? What amenities or space configurations can be provided to make it a good situation for everyone?
— Eileen Conn, regional vice president, Charles Dunn Real Estate Services’ Los Angeles office

• Carnahan Property Management services Woodland Hills,West Hills, Calabasas, Canoga Park, Tarzana, Reseda,Porter Ranch, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando Valley, Granada Hills, Mission Hills, Simi Valley, West Lake Village, Agoura,Toluca Lake, Valley Village, Burbank. Call us at (818) 884-1500 and check if we can serve your area.