What happens when a New Property Manager takes over a Strata Management in Malaysia?
There are many areas of management that needs the attention of a strata property manager.
Risk & Insurance Management
Health, Safety & Emergency Management
Property management under the Valuers, Appraisers and Estate Agents Act 1981 is defined as, “the management, maintenance and control of any land, building and any interest therein, excluding the management and maintenance of property-based businesses, on behalf of the owner for a fee….”. The management of real estate involves multi facets from managing finances, tenancy management, human resource, vendor management and regulatory compliance.
There are many areas of management need attention of a property manager range from taking over a property, building management, maintenance management, administrative management, risk and insurance management, health, safety & emergency management, tenancy management and facilities management.
Firstly, when taking over any new property site, it is imperative to set up a systematic approach for building management and maintenance to ensure the smooth operation of the building facilities and services at the optimum operation cost.
Secondly, the property manager set up a comprehensive maintenance program of the property to cover the area of corrective and planned maintenance and line up the service provider.
In term of financial management, which is a crucial function of the property management, the property manager has the fiduciary duty to manage invoicing, receipts, collecting income, service charges, monitoring outgoings, preparing budgets, maintaining financial records and reporting.
As property manager, in addition to maintenance and finance, general administrative operations are important to manage relationship with clients, tenants, management committee, residents and owners. The operations include customers service functions, maintenance of accurate and updated plans, drawings, service contracts, servicing and equipment maintenance records as well as tenant, contractors and consultants contact details, application and renewal of licenses, permits and certificates and handling of cash. An efficient administrative system should be put in place. The manager shall also assist the management committee to organize and facilitate the committee meeting and general meetings.
In any property, there is a possibility of incidents and accidents which may create emergencies and risks to occupiers and invitees. Hence, safety and wellbeing should be a prime concern in property management. Some type of risks should be looked into, include fire, gas leaks and explosion, power failure, natural disasters, structural failure, mechanical & electrical equipment failure, corrosion & leakage, effluent & waste, infectious disease, etc.
As property managers role is to provide valuable service to owner, sometimes they are also to manage tenancy which involves aspects of billings, collection and disbursement of rents, coordination between contractors, management of utilities and services and monitoring of premises upon termination or expiry of lease.
In conclusion, the property manage has fiduciary obligations to act lawfully, competently, diligently, impartially and in accordance with the client’s instruction and objectives. A good property manager shall adhere to a strict conduct with trust, integrity, fairness, honesty and professionalism with a professional standard when rendering his service to the clients.
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