Property Manager and Facilities Managers: Which Do You Need?
What’s the difference between a facilities manager and a property manager? Which do you need for your commercial property or properties? Most importantly, what makes a good property or facilities manager?
Find out exactly what Property & Facility Managers are, how they’re similar and different, and what you need to do to find the best managers for your CRE assets.
- Property Manager and Facilities Managers: Which Do You Need?
- What are Property and Facility Managers?
- How are property and facilities managers different?
- Choose the Texas Commercial Property Management Experts
What are Property and Facility Managers?
In order to choose the best services for your building, you need to understand the functions and responsibilities of both facilities managers and property managers.
Despite similar titles, Property Managers and Facility Managers actually have different roles and oversee different types of space.
Property managers primarily care for the building, and work for the building owner. In contrast, facility managers are responsible for tenant services such as maintenance and amenities, and primarily work with residents and business occupants.
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.
How are they similar?
First, both work to maintain commercial properties. Second, both manager CRE assets by procuring service professionals like janitors or maintenance personnel who provide building and parking lot repairs.
However, at this point, the job roles diverge because they serve different clients in different types of property.
How are property and facilities managers different?
As CXRE’s Asset Director Rick Walker 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 may seem small, there’s an easy test to distinguish between the two:
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.
Different responsibilities of property and facilities managers
Now that you know the different purposes of facilities and property managers, and the different clientele they serve, let’s explore how their jobs differ day-to-day.
- Operate the building to profit the owner,
- Pay bills, utilities, and taxes,
- Collect rent,
- Develop budgets,
- Coordinate repairs,
- Maintain Grounds,
- Promote occupancy.
- Help create a productive work environment for tenants,
- Take care of office floor plans, meeting space, furniture and fixtures, filing, storage, temperature, lighting, etc.,
- Facilitate tenant services such as building amenities, maintenance and more,
- 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.
Hiring a Leasing Manager
Before hiring individuals to manage properties and care for tenants, investors and building owners have one more 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 including marketing, tenant prospecting, rental rate analysis, lease negotiations, lease prep, overseeing leasehold improvements, space planning, and bidding. All of this must happen before tenants can occupy the space.
Choosing a property manager
After the leasing manager finds 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 in a timely manner, these individuals also need the skills and training for financial aspects like tenant rent collection and disbursement, budget projections, and even insurance settlements.
Some owners also task their property manager with providing site inspections and evaluations and even handling renovations. Property managers also need experience managing others, such as general maintenance, janitorial services, and landscaping staff.
Finding your facilities manager
Usually, building owners also hire facility managers to meet tenant’s needs and provide day-to-day services.
The facilities manager has several other responsibilities directly related to a smooth-functioning office environment within the building such as procuring & maintaining printers, fax machines, phones, furniture, and other office needs.
In addition, the facilities manager must also contract services like 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 so they can strive to increase profits by reducing facility costs, improving productivity, and bolstering the company’s image.
As you’ve hopefully seen, Property and Facility management are two very different roles that require different skills and responsibilities. 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.
Focus on Investing, Not Managing
Most real estate investors don’t have the time or desire to manage properties themselves. With property managers and facility managers, they don’t need to. Even though each manager plays a different role, both contribute to the overall quality of the commercial property. Contracting the right manager for a property makes a huge difference in how smoothly your property operates and how satisfied your tenants are.
In the end, finding experienced facility and property managers to handle your commercial portfolio lets you rest easy, knowing that your assets are in good hands so you can focus on investing in properties, not managing them.
Hiring the right property management firm or individuals
The people you select to fill either of these roles need the right skills, including overseeing contractors & employees, handling finances, managing time well and staying on schedule.
Property managers also need a particular eye for adding value and maintaining appearances, while facilities managers also need strong service skills and a knack for keeping tenants happy. Depending on the size of the commercial property, these roles may overlap and have more or fewer responsibilities.
While there are a variety of platforms available for hiring individuals to manage your properties and facilities, there are also firms and agencies that specialize in providing all of these services, freeing you from having to personally train or oversee the people in charge of your property.
Choose the Texas Commercial Property Management Experts
At CXRE, we offer expert commercial property management for assets in major Texas markets like Houston, Dallas, and San Antonio. Our services include lease administration management, finances, facility operations, and more. No matter what kind of assets you have, our experienced commercial property management team is equipped to lease your commercial office building and manage your properties and facilities.
Since our team wants you to succeed, we’ve created tenant-centric services which reduce turnover. CXRE never uses cookie-cutter methods. Instead, 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 skill-set, and CXRE has it. We handle properties of any size and almost any type. From commercial offices buildings to medical offices, our team will manage your property or portfolio and all related needs.
If you’re looking for experienced and competent property and facilities management in Texas, contact CXRE today.