Tag: Building Management

Building Management Services

Vacant Home Property ManagementWhy do owners of registered condo buildings need to have building management services? For both the condo building and building management services for the rental operation of the same building? This is a situation that is actually quite common. Anyone who is either an investor or someone who plans to live in the building that is a registered condo should know the difference. We will try to explain the difference between the two and why you need separate building management service for each one.

Basically there is a business entity that is responsible for all of the common elements of the building. This is the condo or the strata as it is referred to in some locations. All owners participate and can vote on various issues that the board of directors will bring to them at a general meeting. In addition all owners are eligible to be on the board of directors as well. They are responsible for setting a budget, establishing and maintaining an adequate reserve fund and providing the owners with at minimum an annual report of all financial and operational status. The board will usually hire a building management service or property manager to look after all of these things on their behalf.

Building Management Services and the Board

It is up to the representatives of the building management service to fulfill and carry though all of the boards requirements provided that they are legal of course and comply with the bylaws of the property or condominium. This is a pretty standard example of building management service.

Some Units will be Rented

At some buildings a large number of units may be rented out to tenants. If one owner happens to own these rental units, they may hire a building management service to manage the rental of their units, collect the rent and provide upkeep to the interior of the units. They have no responsibility of looking after the exterior of the building. They work for each individual owner and are responsible for managing the tenant or tenants that rent units in the building they are in. If there are multiple owners who own rental units in the building along with people who own and live in the building, the rental unit owners sometimes will band together to hire one management company to manage all of the rental units in an attempt to reduce their costs overall.

These can be two separate building management services or sometimes they can be the same company, with different people within the building management company responsible for the condo side and the rental side of the business. There is no business or legal relationship between the condo and any tenants that are renting or between the various rental building management services. They are separate entities and all must abide by the condo bylaws etc. Separate financial reports are needed for both entities to ensure that there is no mixing of accounts and payments.

Tenant vs. Owner Issues

Many people find this confusing especially at meetings of the unit owners, however it is important to keep these things separate and distinct. For example if a tenant is causing problems in the building and other owners are complaining, the complaints must be given to the condo building management who in turn will contact the owner of that unit. It is up to the owner of that unit to deal with his or her tenant or the building management company that is managing his or her rental units. The rental building management service will need to then follow up with the tenant to ensure that no more complaints are received.

Hope this helps to explain one aspect of building management service.


Building Management Training

Building Management TrainingBuilding management training covers a lot of subjects that superintendents and rental managers need to know while on the job. Property managers must learn all of the theory as well as the practical side of doing the job. These courses cover everything from looking after garbage disposal to dealing with tenants who do not look after their units and skip town without paying the rent. There are processes to use in these situations and laws that apply. Often these laws are local in nature by state or province. In addition property management will vary greatly depending on whether the building is a residential building or whether it is a commercial building. Security, heating, parking etc to name a few will be significantly different for these types of buildings. Property management also involves the management of contracts for work that is completed by outside contractors. Grounds maintenance, snow removal, heating plant annual checks and so on will need to be monitored and checked for quality work.

Building Management Training – Rental Management

Rental management is part of a building management. Advertising for tenants, qualifying tenants based on income and records from other locations, with or without pets and children and a host of other criteria that come into play without breaking any prejudicial laws is complex. Bad decisions cost money for the tenants as well as the owners and must be carefully considered. Most jurisdictions will not allow for discrimination in any manner at all, so property rental managers must be well aware of the laws in this regard.

Building Maintenance

Buildings must also be maintained. Systems need to be monitored and budgets prepared to help ensure that repairs are completed on time and that there is money in the budget to handle both known maintenance items as well as emergency repairs. All of these things and much more is covered as part of building management training. Routine maintenance plans should be drawn up and prepared. Each plan will depend very much on the type of building, whether it has elevators or not, underground parking, exercise rooms, pools, etc. Every building is unique and while many activities will be the same, many will also be different. A good property manager will be on the ball and make sure that they have captured everything that needs to be done to maintain the building properly.

Insurance

Building managers must also carry liability insurance to cover them in case there are situations that develop leaving them liable for claims by tenants or the owners if they are under contract to the owners. Many owners will hire a property management company to manage a building on their behalf hence the reason to make sure that the property manager has adequate liability insurance. Building construction is also different depending on whether you are dealing with a high-rise condo, townhouses or single family homes. The technology is also different as well, all of which must be managed by the building management team.

Building Management Training – Security

Another aspect of building management which training should cover is security of the building. Malls are property management situations which need to have a security team in place to deal with everything from stealing to pick pocketing to loitering. Apartment buildings have much different requirements and the really expensive places will have a concierge who provides services to tenants such as calling taxis as well as providing soft security for the building. These requirements must be managed by the property management company based on the requirements of the owner as well as the type of building that is managed. Experienced property managers will be prepared to recommend the appropriate level of security based on the area the building is in, the history of the building and the needs of the tenants.


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