Although the titles may be similar in name, the scope of duties of a property manager and facilities manager vary dramatically. Knowing who’s in charge of what and where to delegate tasks is essential for keeping business operations running on the right track.
Each role is important to a commercial property’s ongoing success. In fact, without the right people in each of these positions, your property could decline and lose value over time.
Below, explore how the two positions are similar and different and how you can find the best managers for your commercial real estate assets.
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Property Manager
First and foremost, the distinct difference in a property manager’s role is they work for the property owner or investors – their interest is the top priority for the manager. The property manager is responsible for overseeing the safety and security of the building with the primary job of maintaining profitability for a property owner. Some of the property manager’s primary duties are:
- lease properties
- market available property space
- find reliable tenants
- act as a liaison between tenants and property owners
Facility Manager
In contrast, facility managers are responsible for the related tenant services and primarily work with residents and business occupants. Their primary focus is the building itself: maintaining the vital systems within a commercial real estate property. Some of the facility manager’s primary duties are:
- maintenance and amenities upkeep
- keep tenants and clients comfortable and secure
Property Manager and Facility Manager Similarities
Facility managers and property managers do share overlapping management tasks. However, each position still fulfills a different need for each job.
First, both work to maintain commercial properties. A property manager will oversee a building’s infrastructure, utilities, and improvements. The motivation for a property manager is to increase the property’s value, decrease occupancy, and keep tenants in the property as long as possible. Facility managers, however, maintain commercial properties out of concern for the property itself and the tenants who live and work there.
Second, both property managers and facility management professionals oversee CRE assets by procuring service professionals like janitors or maintenance personnel who provide building and parking lot repairs. However, a facility manager is generally more adept at fixing maintenance problems without calling in another professional.
The roles may have some of the same tasks, but they fulfill different needs – one deals with the building; the other deals with the people and processes.
Property and Facilities Managers Differences
Although the difference may seem small, there’s an easy test to distinguish between the two:
Is the manager’s focus and the direction of their job different than the focus of the tenants?
For instance, a property manager’s focus and direction will be aimed at helping the property owner successfully lease the property. While a property manager will have plenty of interaction with tenants, the main focus is on the owner or investors. In contrast, a facilities manager focuses on the building itself and the tenants who work or live there, regardless of the owner. There will still be interaction with the owner, but the primary focus is the building itself rather than the owner’s profits.
THE DIFFERENT RESPONSIBILITIES
Explore how the managers – property and facility – jobs differ day-to-day.
Property Managers Task
- Operate the building to profit the owner
- Pay bills, utilities, and taxes
- Collect rent
- Develop budgets
- Coordinate repairs
- Maintain Grounds
- Promote occupancy
Facilities Managers Task
- Help create a productive work environment for tenants and their clients
- Take care of office floor plans, meeting space, furniture and fixtures, filing, storage, temperature, lighting, etc.
- Facilitate tenant services such as building amenities, maintenance, etc.
- Hire janitorial and maintenance staff, and maintain cleaning schedules
- Inform and update tenants on safety, security, and hygiene guidelines
- Ensure the property adheres to all building codes
- Create regular required reports
What to know before hiring a Leasing Manager
Before hiring individuals to manage properties and care for tenants, investors and building owners have one role to fill – the leasing manager.
Owners of buildings with multiple tenants hire leasing managers to find occupants and fill their commercial office spaces. While it may sound simple, leasing managers have a variety of responsibilities before tenants can occupy the area, including:
- Marketing
- Tenant prospecting
- Rate analysis
- Lease negotiations
- Lease prep
- Overseeing leasehold improvements
- Space planning
- Bidding
Choosing a Property Manager
After the leasing managers find occupants for the office space, building owners often select their property manager. As discussed, property managers work for building owners to maintain their properties. In addition to handling repairs and responding to issues promptly, these individuals also need the skills and training for financial aspects like tenant rent collection and disbursement, budget projections, and even insurance settlements.
Also, some owners task their property manager with providing site inspections and evaluations and overseeing renovations. Property managers also need experience managing others on the team – such as general maintenance, janitorial services, and landscaping staff.
FINDING YOUR FACILITIES MANAGEMENT PROFESSIONAL
Usually, building owners hire facility managers to meet the needs of the tenants and provide day-to-day services.
The facilities manager has several other responsibilities directly related to a smooth-functioning office environment within the building. These tasks might include procuring & maintaining printers, fax machines, phones, furniture, and other office necessities.
In addition, the facilities manager must contract services and assets repairs such as the HVAC, phones, and other equipment.
However, it’s not just about managing assets, space, and systems. Facilities managers must first learn their company’s core business strategies to strive to increase profits by reducing facility costs, improving productivity, and bolstering the company’s image.
The Focus Should be Investing, Not Managing When Hiring The Property Management Team
Most commercial real estate investors don’t have time to manage properties. Property and facility managers eliminate the extra task for investors. Each manager contributes to the overall quality and success of the commercial property. Contracting the right manager significantly affects how smoothly a property operates and satisfies tenants.
In the end, finding skilled facilities and property managers to handle the commercial portfolio allows ease in knowing that the assets are in good hands. The investor has room to focus on other value-added tasks like investing in other properties, not managing them.
Original article here.