Elizabeth Barnes, COO of NAI Plotkin, knows property management is always a labor- and people-intensive profession, no matter the day or time of year. In that regard, the pandemic did not change the best practices for the Springfield, Mass.-based full-service brokerage and management company.
“The number-one best practice has always been — and remains to this day — to manage the property as if you own it, with the awareness that you don’t,” Barnes says.
Treat the Asset as Your Own
For Barnes, this means focusing on the asset’s value at all times.
“Common area maintenance (CAM) reconciliation, capital planning, value engineering options — they need to be front and center,” she continues. “It’s not just about cutting expenses. Look at how you can add value or reduce upfront costs.”
All this should be done, she states, with the owner’s goals for the property in mind. Those goals may differ based on whether the owner is, for example, looking to divest the asset. Or if the tenant’s space has gone dark. Or if a pandemic is occurring.
“There is a definite focus on health and safety now, regardless of the product type,” Barnes says. “Many owners wanted HVAC and air-handling systems that could double the amount of outside air coming in. Many have installed high-performance filters. Their priority shifted from green cleaners to antibacterial or antiviral cleaners. They invested in touchless features.”
These included hands-free door openers, faucets and toilet flushers. Automated devices like these do create added tasks for property managers, who oversee the installation and maintenance of these items. Barnes believes their addition is necessary, however, as she doesn’t see the emphasis on health and wellness going away anytime soon — not for owners, tenants or visitors.
“I definitely think most of the changes from the pandemic will be permanent,” she says.
Though it’s impossible to plan for events like COVID, the past two-plus years have motivated owners to rethink their strategies in general, particularly when those strategies impact their bottom lines. Yes, we’re talking about major repairs and replacement projects.
NAI Plotkin carries out a study as part of their capital planning initiatives at every property they serve. The study involves a physical analysis of the building components’ conditions, including the roof, pavement, boilers, chillers and more. This helps the third-party management firm assess how much useful life is likely left in these systems. The second part of the study is a financial analysis of the funds available to make these replacements when components are nearing the end of their useful life.
Then there’s the value engineering aspect of property management.
“‘We’re always looking for ways to maintain or enhance results for building systems while reducing life-cycle costs,” Barnes adds.
A recent example includes repairing a pair of 26-year-old condensing towers at one of the properties managed by NAI Plotkin.
“The towers were in need of attention,” Barnes explains. “Vendors suggested that they be replaced at a cost of over $300,000. After an on-site investigation was conducted, it was determined that repair of the units — versus replacing the units — would be much more cost-effective. We were able to extend their useful life another 15 years at a savings of over $260,000.”
Emphasize Efficiency
Maximizing the use of an owner’s systems is one thing, but Barnes notes property managers must also ensure their own operation runs as efficiently as possible. In today’s day and age, that’s done through the use of technology. Specifically, streamlined data management platforms.
“You have to use data efficiently,” Barnes says. “Today, it’s become so much easier to leverage technology and consolidate data into one platform.”
She suggests looking for a single source that can collect, verify, store and analyze all your information.
“You want to find that unicorn that has all those capabilities in one package,” she adds.
When this occurs, it allows property managers to take their “offices” with them on the go. They can do an on-site inspection, take photos and create a work order while they’re still at the property, using their smartphone or tablet. The right software should also be able to track insurance claims, confirm that a vendor carries the proper insurance and handle a firm’s accounting needs.
An effective software system like this not only saves a property management company time but also money as it prevents human errors and frees up staff to attend to other important tasks.
“The less you have to analyze data and the more you can run reports in real time, the less you risk false comparisons,” Barnes explains. “When you’re pulling data from different systems, you have to verify that data is consistent. This saves time and helps you utilize resources much more efficiently.”
Attending to Tenants Today
Technology is also assisting property managers in other ways. Say, for instance, allowing residents to attend meetings virtually — a hallmark of the pandemic.
“HOA meetings, annual meetings, board meetings, etc. In the past there’s been an apathy from tenants who didn’t want to attend in person,” Barnes says. “The use of Microsoft Teams and Zoom has increased tenant engagement. We’re hearing that more people want to be engaged in the management of their property, and technology has allowed us to foster that. This is certainly a change for the better.”
Barnes notes that although increased meeting attendance can bring more complaints, it gives property managers the opportunity to address those issues before they snowball out of control. She, for one, also prefers to hear what people have to say, even if it’s negative.
“The worst thing in property management is an apathetic community,” Barnes asserts. “You need people to care and be involved. These online meetings bring people together and get them engaged.”
Technology and virtual meetings have created another trend in property management: space reconsiderations. The work-from-home movement, accelerated by the pandemic, continues. This has led some companies to downsize space.
“This is particularly true of businesses with back-office capabilities, like insurance or banking,” Barnes adds. “Many in these industries are still working from home three years into the pandemic, and I don’t see those workers coming back into the office.”
Others are expanding their spatial needs. These include collaboration-heavy industries, such as marketing, technology and, yes, even property management.
“Team collaboration — even in the property management field — is essential,” she says. “We tried to have staff work from home as much as possible during the pandemic, but we found we’re just not as productive when the teams aren’t in the office together.”
This type of collaboration, Barnes believes, is what allows the NAI Global network of property management firms to provide a consistent delivery of services across the globe. Of course, it’s hard to deliver those services without a meeting or two.
“In addition to a well-established procedures manual, which we update annually, our group meets in person at least twice a year to further develop and share best practices and policies. I find this type of collaboration to be invaluable.”
— By Nellie Day. This article was written in conjunction with NAI Global, a content partner of REBusinessOnline. For more articles from and news about NAI Global, click here.