Strategic Advice- Do I Need More Than a Sober Super?
People ask us how property managers differ. One important difference is a focus on strategic advice vs. a focus on operations. Better property managers treat buildings as businesses- increasing shareholder value and improving cash flow. Others view their responsibilities as making sure supers are sober and avoiding violations for a building.
In 2007, we focused our efforts on increasing our clients’ property value. This year, and probably through 2009, preserving value is and will be on the tops of everyone’s list. Our clients’ focus has shifted to reflect the change from seller’s to buyer’s market. It’s no coincidence that the buildings which invested or upgraded in recent times of surplus are best positioned to see their value preserved.
Currently, when owners consider investment and return on investment, they are far more concerned with the initial investment than the return now relative to last year. Where last year building boards and owners focused on what will benefit their properties the most, they are now concerned with what will cost the least. Although clients are still looking for the largest value impact for their dollars spent, they are more conscious than ever about how many dollars they are spending.
Some projects which may have been intended to increase value or functionality last year are still being implemented but on a smaller scale or with an eye towards reduced expenses.
Two examples that I plan to discuss more fully in later posts are rooftops and Children Areas (play centers, Kid corners, children areas, RecRooms, etc.)
Rooftops
Board members and owners used to ask whether we could help them utilize their rooftops. We still get some requests for this but far more frequently clients ask us about incorporating solar technology into their roofs or building coverings. We are also asked how best to utilize undeveloped FAR.
Children Areas
One low cost way to utilize a low traffic common area is a Children’s Area (Kids’ room, Play Center, Kid corners, children areas, RecRooms, etc.). These rooms transform underutilized or unutilized areas into cheerful showplaces for young children and perspective buyers. This transformation can be accomplished in areas formerly used for a variety of purposes though personal storage, equipment storage, and workshops are likely candidates. The important factors for many owners though are the low required investment (mostly paint and time) and the perceived quality of life improvement associated with the new area. Although newspapers and websites do not yet include Children Areas in their lists of amenities, in the future they may. These areas can make the difference for buyers with children.
Having reliable and impactful solutions to these questions is what sets property managers apart. Furnishing strategic plans and providing these answers are the abilities that can make property managers trusted partners.