Lecture 1 professional property management
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This document discusses property management in Malaysia. It begins by outlining the history and functions of the Board of Valuers, Appraisers and Estate Agents Malaysia (BOVEA), the regulatory body for property management. It then discusses the classifications of different types of real property and opportunities in property management, including the increasing demand for professional managers with the rise of strata title properties. The final sections outline the various roles of property managers and their key duties, such as maintaining buildings, ensuring tenant satisfaction, and advising owners on leasing and investments.
Lecture 1 professional property management
- 1. 6/23/2015 1 PROFESSIONAL PROPERTY MANAGEMENT Siti Hasniza Rosman Universiti Teknologi MARA (UiTM) Shah Alam Table of content 1) Development of the Property Management Profession 2) Classification of Real Estate Property 3) Opportunities in Property Management 4) Duties of Property Manager
- 2. 6/23/2015 2 DEVELOPMENT OF THE PROPERTY MANAGEMENT PROFESSION The Board of Valuers, Appraisers and Estate Agents Malaysia (BOVEA) • The Board of Valuers, Appraisers and Estate Agents Malaysia was set up in 1981 under the purview of the Ministry of Finance, Malaysia. • The setup and operation of this Board is governed by the provision of Valuers, Appraisers and Estate Agents Act 1981. • Its primary function is to regulate the Valuers, Appraisers and Estate Agents practising in Malaysia.
- 3. 6/23/2015 3 Functions of BOVEA • To keep and maintain the Register of Valuers, Appraisers and Estate Agents, Probationary Valuers and Probationary Estate Agents and firms of Valuers, Appraisers and Estate Agents. • To approve and reject applications for registration. • To hold disciplinary proceedings. Functions of BOVEA • To conduct examinations. • To prescribe Scale of Fees. • To regulate the professional Conduct/Ethics of Valuers, Appraisers and Estate Agents. • To award scholarships
- 4. 6/23/2015 4 What Is A Property Manager? • A property manager is someone who: ▫ Maintains and manages property according to the goals of ownership ▫ Oversees property for an owner or group ▫ Personally interacts with residents and tenants to ensure satisfaction and renewal What Is A Property Manager? • A property manager is someone who: ▫ Prepares financial statements and budgets of property ▫ Manages employees and contractors ▫ Ensures property is safe, marketable, and up-to- code
- 5. 6/23/2015 5 CLASSIFICATION OF REAL PROPERTY Landed • Single Storey Terrace • 2 – 3 Storey Terrace • Semi – Detached • Bungalow
- 6. 6/23/2015 6 Strata • Low Cost House/Flat • Apartment • Condominium • Serviced Apartment Commercial • Shop Office • Office Block • SoHo/SoFo/SoVo
- 7. 6/23/2015 7 OPPORTUNITIES IN PROPERTY MANAGEMENT Article: Managing High-rise Residential Building In Malaysia: Where Are We? • Property management is the act of sourcing and operating landed property to sustain the capital value in line with the objectives of the investor through effective management of land and building (Singh, 1969).
- 8. 6/23/2015 8 Article: Managing High-rise Residential Building In Malaysia: Where Are We? • The introduction of Strata Titles legislation and strata title property has increased the demand for professional property management. Property management and maintenance are part and parcel of a typical high-rise living which is then had become more complex and demanding. Article: Managing High-rise Residential Building In Malaysia: Where Are We? • Maintenance, in this sense, involves both preventive and corrective work including cyclical repairing, rewiring and servicing of mechanical and electrical equipment, and repair or replacement of defective part of the building. • Maintenance operations in the country are still concentrated mainly on the physical element or structures instead of the mechanical and electrical aspects of the buildings.
- 9. 6/23/2015 9 Article: Managing High-rise Residential Building In Malaysia: Where Are We? • Effective property and facility maintenance is important in the economic and socio-political aspects of high-rise living. • A proactive and well-organised property management team can promote social harmony and reduce anti-social behaviour among the residents. Where property managers work • Third-party managers ▫ Work for the property owners of the property they manage • Real estate investment trusts (REITs) ▫ Employee of the company • Institutional owners ▫ Work for group of building owners: banks, large limited partnerships, foreign investors, etc. • Corporate real estate management ▫ Work for corporations to manage their income producing real estate
- 10. 6/23/2015 10 Different property management jobs • On-site manager ▫ Day to day operation: collecting rent, preparing reports, supervising maintenance, cleaning works • Leasing agents ▫ Leasing broker: locating & signing new tenants to occupy space in building • Tenant representative ▫ Mostly for commercial property: assisting tenants in locating space and negotiating lease Different property management jobs • Property manager ▫ Responsible for the operation of several properties, overseeing on-site manager, involve in planning and budget for property management activities, and usually report to asset manager • Portfolio (asset) manager ▫ Executive responsible for large no of properties, evaluate the properties performance, act as a substitute to owner, approve policies and financial, act as advisor to owner.
- 11. 6/23/2015 11 DUTIES OF PROPERTY MANAGER Duties of Property Manager • Currently only a registered valuer can practice as a Property Manager. • The property manager ensures that the owner gets the best returns of his property investment. • He also ensures that the building is well maintained, the building services well looked after and all expenses paid.
- 12. 6/23/2015 12 Duties of Property Manager • He is able to optimise usage and enhance the investment in property. • He advises on lease renewals, selection of quality tenants and the appropriate tenant mix. References • Tiun Ling Ta, 2nd NAPREC Conference, INSPEN, Managing High-rise Residential Building In Malaysia: Where Are We?. • Board of Valuers, Appraisers and Estate Agents Malaysia.
- 13. 6/23/2015 13 Thank You Good Luck!!!