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Real Estate Round Up: Condominium Management Challenges

By on Oct 11, 2016 in Featured, Property Management

While property managers compete for the same resources to provide quality management to run condos, offices, hotels, serviced apartments and retail centres smoothly and expertly, there are scant resources of formal training of the concerned personnel, a report by CBRE Thailand has observed.

The report presented by Aliwassa Pathnadabutr, CBRE Thailand’s managing director, noted that four institutes have just started to offer undergraduate property management programmes and most experience and know-how is gained in the field.

The issue is particularly acute for residential condominiums where management budgets are especially tight and operations are subject to condominium juristic person (CJP) constraints, according to the report.

Serviced apartments, hotel and retail building have higher management budgets than condos, it said, enabling them to access higher quality personnel and spend more on the buildings. CJP constraints mean that everyday decisions rely on a committee.  Bigger decisions such as appointing a property manager or setting common-area management fees are determined at the building’s annual general meeting by majority votes by co-owners.

As single-ownership buildings, the decision-making process is simpler for hotels, serviced apartments, retail developments and offices. Reaching a good decision is much harder when multiple parties are involved in decision-making.

The report notes that people are key to successful property management outcomes but finding people with necessary skills sets is no easy matter.

What does it take to become a competent property management professional? Start with broad technical and financial skills as demanded by building operation. Equally indispensable are strong interpersonal skills. Fluency in Thai and English is almost non-negotiable. How come? Well, just dealing with those committees and co-owners to resolve day-to-day management issues, let alone implementing the solutions, is enough to confound even the best intentioned aspirants to the position, unless they have true quality.

So long as such people are in short-supply, high staff turnover will continue to be an issue and when new people are joining the operation to replace experienced people on frequent basis, getting things done faces another hurdle.

The report looks at how several real-estate developers such as Charn Issara, Ananda and Sansiri, are getting around the issue by establishing property-management entities of their own. In additional, MK Real Estate recently set up Yours Property Management to manage both its own projects and third party projects.

Developers know better than anyone that property management largely determines how values are maintained and raised. But only now are they recognising that the best way to ensure that their developments are managed to the standards they tell buyer to expect is to take on responsibility themselves, the report continues.

Nevertheless, the report concludes, specialist personnel are likely to continue to be in short-supply. CBRE Thailand reported that more technological support in key areas of building management such as financial management, lease administration, engineering and purchasing would go same way to surmounting the challenges, saying: “This would at least lessen the reliance on human resources and ensure a smoother transition whenever there is staff turnover.”…

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Source: Post Today – 11 October 2016

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