Chapter 2
Property Management Economics and Planning

The Property Manager as an Economist

l   Awareness of economic activity

–   Seasonal fluctuations

–   Cyclical activity

–   Long term trends

–   Random changes

–   Government influences

l   Real estate business economy

–   New construction

–   Rental market

l  Buyer’s market

l  Seller’s market

Management survey

l   Inventory of property

l   Neighborhood analysis

–   Life cycle

–   Competitive market survey

l   Market/Tenant analysis

l   Gross income analysis

l   Operating expense analysis

Property Analysis

l   Leases

l   Quantity and Quality of Space

l   Physical Condition of the Premises

–   Exterior

–   Interior

–                     Equipment

–   Health and Safety Hazards

Market Analysis

l   Regional Analysis

–   Population Statistics and Trends

–   Major Area Employers

–   Income and Employment Data

–   Transportation Facilities

–   Supply and Demand Trends

–   Economic Base of City

–   Future Economic Prospects

l   Neighborhood Market Analysis

–   Boundaries and Land Usage

–   Transportation, Parking and Utilities

–   Neighborhood Amenities and Facilities  

Management Plan

l    Management Survey

l    Maintenance

–    Routine

–    Corrective

–    Preventative

–    New construction

l    Budget

–    Income

–    Expenses

–    Refurbishing

–    Cash

Management Plan

l   Administrative reporting

l   Compensation

l   Operations manual

–   Personnel

–   Tenant relations

–   Maintenance

–   Security

Operations Manual:
Personnel Section

l   Job descriptions

l   Vacation scheduling

l   Injury policies

l   Compensation

Operations Manual:
Tenant Relations

l   Fraternization

l   Collections

l   Unruly tenant

l   Dissatisfied tenant

Operations Manual:

l   Maintenance schedule

l   Maintenance procedures

l   Work orders

l   Quality control

Operations Manual:

l   Access control

l   Slip and fall

l   Assault prevention

l   Proactive and reactive additions