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Differences Between Facility And Property Management
Introduction
Perhaps you’ve heard the terms “property management” and “facility management” a lot and have wondered if they can be used interchangeably. In actuality, both are in charge of upholding and continuously enhancing property standards. Although there are many parallels between property management and facility management, it’s important to recognise that there are also some significant distinctions. If the distinctions and similarities between these two are not evident in day-to-day business contacts, it frequently results in incorrect expectations or perceptions.
We will be examining the key distinctions between property and facility management in this blog.
An Insight Into Facility And Property Management
Now, one may ask. What exactly is Facility Management?
Well, the professional field of facility management (FM) is dedicated to providing buildings and real estate with effective logistics and support services.
And coming to Property Management.
The day-to-day oversight of building maintenance, and commercial, or industrial real estate by an outside contractor is known as Property Management. Shopping malls, condominiums, detached homes and apartments can all fall under this category.
By adhering to certain essential principles of facility management, you can increase the value of your housekeeping holdings. Facilities management oversees the day-to-day management of building operations, including upkeep, repairs, energy control, utilities, landscaping, physical security, and general maintenance.
To enhance overall productivity and quality of life, Intellisol’s Facility Management Services provide an organisational function that integrates people, places, and procedures inside the property.
However, managing property that is normally owned by a different organisation or individual falls under the purview of property management. In addition to making money, property managers take care of the owners’ properties by maintaining them.
Diving Into The Responsibilities Of Facility Managers And Property Managers
The primary reason why property and facility managers are frequently mistaken with one another is because they do many of the same tasks. For example, they are both in charge of maintaining the building’s safety and security, carrying out energy-saving projects, and corresponding with outside service providers. However, they differ from one another as well.
The owner is represented by the property management. They determine how the building will make money and whether to hold onto it or sell it. Usually, they would delegate the facility manager to handle the lesser jobs.
Naturally, the tasks and responsibilities are determined by the size of the building and the portfolio. It also depends on whether the building is leased by the employer or fully owned by them.
The primary duties of a certified facility manager and a property manager can help us distinguish between the two, even though the lines between the two may occasionally appear to be blurry.
Role Of A Certified Facility Manager
- Oversees both the leased and owner-occupied spaces.
- Keeps up with all company systems and ensures their proper operation
- Oversees the facility employees and assigns them tasks
- Keep the structure safe and secure
- Ensures that the building maintenance and infrastructure are constantly operational and functioning properly.
- Troubleshoot equipment issues to see whether they can be resolved internally or if an expert has to be called in.
Role Of A Property Manager
- Oversees all building-related tasks.
- Oversees all tenant lease agreements and carries out the building owner’s obligations as specified in the lease.
- Serves as the primary point of contact for renters and owners
- Manages rent payments from tenants and ensures that they are received on schedule.
- Assists building owners in achieving their objectives for financial management
- Speaks with the building management about any problems that tenants raise with the property’s amenities and strategise building management solutions.
The Overview Of Facility Management And Property Management
1.Facility Management
Facility management’s primary goal is to ensure that every building’s amenities are operating without a hitch while coordinating and implementing real estate and productivity plans. Facility managers use real estate as a tool to provide services, and they prioritise the demands of the tenant and the end user.
They are in charge of attending to the requirements of the building’s residents, who might or might not be the property owners.
The main goals of facility management are cost efficiency and ongoing facility supply to produce an optimal work environment, which raises productivity and effectiveness overall. The overall cost of ownership, overall quality, and occupant happiness are among the performance measures.
2.Property Management
Putting real estate strategy for the property into practice is the primary objective of property management. It emphasises owner and tenant relationship management to maximise net operating revenue, with real estate serving as the primary profit-generating tool.
In order to maximise value for stakeholders, the property manager works on behalf of the property owners and is in charge of smooth cash flow and profit generation. Cash return, net yield, and net operating income are the property management performance metrics.
OVER TO YOU
Being aware of the distinctions between property and facility management will enable you to handle your real estate more methodically. By assigning appropriate responsibilities to those in these positions, business management decision-makers may precisely gauge key performance indicators and determine whether or not their assets are being properly cared for and operating.
