Why Property Management Will Gain More Importance in a Down Market
Mar 16, 2009
In good times with lower vacancies and higher rents, the importance
of providing the highest standards of property management is not always
emphasized. In fact, in a recent poll of commercial landlords the majority felt
that property management firms were overall not very good. Some of the things
that were pointed out were: the revolving door of property managers that came
and went through their projects; lack of flexibility in accounting reports; poor
follow through; lack of competing bidding on repairs and projects; and, mistakes
made in operating expense pass-through calculations.
Several landlords note unless you
were a large REIT that the larger commercial property management firms treated
them with less service overall.
This coming year will offer many
challenges to building owners such as higher vacancies, less revenues and
tighter credit standards. To compete for a smaller amount of tenants, buildings
will have to “shine” to win these tenants. That means from the lobby on up
buildings will have to remain modern, clean and attractive while landlords have
fewer funds to upgrade. Buildings will have to offer personal attention to their
tenants to insure that they work with their tenants to survive these difficult
times. They will also have to insure that they pass on all costs that they are
legally able to pass on to insure maximum revenue.
To meet these challenges property
management companies will have to change the way they do business. They will
have to invest in better people; more supplicated software and provide more
personal rapport with clients.
In order to meet this challenge,
Starboard TCN Worldwide and Westlake Realty have formed a new company Star West
Property Management Services. Star West combines two independent firms to
provide personal leasing and management services with top-notch software
applications. Westlake Realty has been providing property management services
since 1972. In 2007 Westlake won the Northern California Property Management of
the Year award. Westlake manages over 500 million dollars worth of real state
throughout the Western United States. It offers a personalized financial
application system that allows a landlord absolute review of everything that
goes on with their property in a paperless world fully tailored to how the owner
wants to view this information. It offers GPS technology to insure that support
is provided and delivered as quickly as possible. It has long standing
management staff that stays with a building.
If you are interested in learning
more about Star West please visit StarWestrealty.com or call us at 415-765-6900
for a free review of how we can handle your property management needs.
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Written by: Hans Hansson
Hans Hansson is President of Starboard TCN Worldwide Real Estate Services as well as a member of the Board of Directors for TCN Worldwide Real Estate. Hans has been an active broker for over 24 years in the San Francisco Bay Area and specializes in office leasing and investments. If you have any questions or comments please email firstname.lastname@example.org or call him at (415) 765-6897. You may also check out his website, http://www.commercialspacefinder.com/.