Property Manager or Facilities Manager: Learn Which You Need
What’s the difference between a facilities manager and a property manager? If you have commercial assets, which one is more useful? Between property and facilities management, which is the better option for your commercial property (or properties)?
- Property Manager or Facilities Manager: Learn Which You Need
- The Function of Each Role
- Different Roles in Property and Facilities Management
- Commercial Property Manager Roles
- Facilities Manager Roles
- A Summary
- Choose the Texas Commercial Property Management Experts
Generally, the functions of both roles differ. However, it depends on the type of property and the facilities that the mangers oversee. In this article, we highlight the roles of commercial office space facilities manager and property manager. What’s more, we also outline the functions of each role to help you decide which you need, or if you need both.
The Function of Each Role
Before you choose a service for your building, you should first know about the function of both facilities managers and property managers. Without a doubt, each role is an important part of your commercial property’s ongoing success. In fact, without competent people in these positions, your property could end up declining and losing value over time.
In general, each of these roles has a different focus. Regarding property managers, they care for the building. As a result, these people primarily serve the building owner.
In contrast, facility managers focus on the services required by the property’s tenants. Due to the facility manager’s focus, these individuals serve the companies that occupy the spaces within your commercial property.
Are there Similarities?
To help you more effectively see the differences between commercial property management and facilities management, it’s beneficial to highlight the similarities. Firstly, both of these roles work to maintain commercial properties. Secondly, both provide asset management through the procurement of service professionals like janitors or maintenance personnel who provide building and parking lot repairs. However, at this point, the job roles diverge. Specifically, who they serve dictates what they do and where they serve. On a basic level, they simply have different roles.
Different Roles in Property and Facilities Management
If you review the similarities between the two roles, you’ll see a simple, single difference between them. What is this difference and why is it significant? The main difference is who directs each of these people in their duties. As the CXRE’s COO explains:
A property manager usually is assigned by an owner of a building that has multiple tenants and is generating revenue by leasing out sections of the building. A facilities manager typically works for a company that owns or leases multiple properties.
Although the difference could seem small, we should think of it in different terms. For example, is the person’s focus and the direction of their job (especially concerning the building owner) different from the company or companies that occupy spaces on the property? In light of this, we can more easily see how each role differs depending on the occupants’ needs.
Differences Between Property Managers and Facility Managers
Here are basic differences between property managers and facility managers. Further down, we offer more details.
- work for property owners
- care for properties
- operate the building to profit the owner
- pay bills, utilities, and taxes, collect rent, develop budgets, coordinate repairs, keep properties occupied, etc.
- care for tenants (the people) who conduct business in the property
- are concerned with the services tenants require
- create and maintain productive spaces for tenants
- take care of office floor plans, meeting space, furniture and fixtures, filing, storage, temperature, lighting, etc.
- help create a productive work environment for tenants
Commercial Property Manager Roles
Overall, property management mainly includes services related to properties and buildings. Typically, property managers answer to landlords or investors. As a result, they collect rent, generate revenue for the owner, and also handle owner–tenant relationships.
In addition, property managers are typically concerned with property maintenance. However, their top priority is maintenance which maintains the property’s value. In the end, their job is taking care of the building or property along with the related physical environments (grounds, roofs, lighting, etc.) for the owner.
Hiring a Leasing Manager
However, before an owner or investor needs a property manager, they must fill the spaces in the property. The owner of a building with multiple tenants will hire a leasing manager. This person is first responsible for leasing commercial office space.
It may sound cut and dried, but there are many financial aspects to this responsibility, including marketing, tenant prospecting, rental rate analysis, lease negotiations, lease prep, overseeing leasehold improvements, space planning, and bidding. All of this must happen before a tenant is actively in the space.
Specific Duties of a Property Manager
After the leasing manager finds occupants for the office space, the building owner often chooses a property manager. Specifically, this individual’s role is maintaining the facilities. What’s more, this maintenance goes far being making sure repairs are made in a timely manner. The commercial property manager may be tasked with financial aspects like tenant rent collection and disbursement, budget projections, and even insurance settlements.
On top of all that, the owner may task the property manager with providing site inspections and evaluations. Furthermore, the owner may ask the property manager to handle renovations, oversee security, and manage around-the-clock emergencies. Because of this, the property manager is most commonly involved with the building’s daily maintenance and upkeep. Consequently, this could include jobs like finding and hiring the onsite staff for security, general maintenance, janitorial services, and landscaping.
Facilities Manager Roles
In contrast to property management, corporate facilities management involves services related to both the property AND the tenants. Since a facilities manager focuses on the building’s users (tenants), this manager’s job is overseeing, optimizing, and maintaining day-to-day support services. They also make sure the property is safe and suitable for each tenant.
Usually, a company that owns and occupies one or several buildings hires a facilities manager. The facilities manager’s responsibility is the care, maintenance, and oversight of the company’s building. Along with that, the facilities manager has several other responsibilities directly related to a smooth-functioning office environment within the building.
Procurement for the company as a whole includes items such as printers, fax machines, phones, furniture, and other needs for keeping an office facility functioning. In addition, the facilities manager must contract services. These include systems and assets repair, which would include the building and those systems within 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. After that, they strive to increase profits by reducing facility costs, improving productivity, and bolstering the company’s image.
Specific Duties and responsibilities
Below is a list of a few other typical facilities manager’s duties:
- Ensure the ongoing functionality of the building’s basic services such as water, electricity, hygiene, climate control, and others
- Hire maintenance and janitorial staff for the property then assign duties and maintain schedules
- Inspect all the property’s equipment to be sure everything remains in proper working order
- Keep tenants informed and updated on the property’s safety and hygiene guidelines
- Coordinate with each office’s representative to make sure each tenant receives proper, timely service from the maintenance and janitorial staff
- Make sure that the property follows all building codes
- Create any and all required reports for the property
To sum up, property and facilities management are different. Property managers take care of the property and work for the owners. Facilities managers take care of the people (specifically the services they require) who conduct business in the property.
Property managers work for the building owner and operate the building to profit the owner. So, they handle tasks like collecting rents, paying bills, utilities and taxes, developing capital improvement budgets, coordinating repairs, bidding for services, and keeping properties occupied.
Facilities managers concern themselves with the actual spaces within a property. They deal with everything needed to make these spaces productive for those who work in the building. Because of this, facilities managers take care of the furniture and fixtures, office floor plans, meeting space, filing, storage, temperature, lighting, and other issues. In general, they ensure that tenants can be productive as possible in the work environment.
Depending on the size of the commercial property, each role may have more or fewer responsibilities. In some cases, these roles might overlap. However, in general, the descriptions above are a good overview of each role’s functions.
Choose the Texas Commercial Property Management Experts
We offer expert commercial property management for assets in major markets Texas like Houston, Dallas, and San Antonio. Specifically, we provide Lease administration management services, Financial services, Facility operations, and more. No matter what kind of assets you have, our commercial property management team can handle both office building leasing and management.
Since our team wants you to succeed, we’ve created tenant-centric services which reduce turnover. As a result, CXRE never uses cookie-cutter methods, but we design big-picture tailor-made, solutions for your commercial real estate portfolio. When you work with us, you have some of the most talented people in the industry on your side.
Our Special Skillset
Commercial property management requires a special skillset, and CXRE has it. We handle properties of any size and almost any type. From commercial offices buildings to medical offices, our team can manage your property or portfolio and all related needs.
If you’re looking for experienced and competent property and facilities management in Texas, contact us today to learn more.