What to Look Out For When Deciding on Property Manager for Your Development?

One of the major decisions a management committee or an owner of a development makes is on the selection of a Property Manager. As a management committee, you have been entrusted by the owners of your development to act on behalf to ensure the value of the property is maintained or continues to rise.

Below are criteria’s to consider:

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  1. Licensed Property Manager

Ensure that the Property Manager is licensed by Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVEAP).

There are currently 22 licensed Property Managing Firms in Johor. You may visit their website at https://www.lppeh.gov.my; click search/search for firm; select: Type “Property Management”; State “Johor”; click “Search”.

Firms with license number “(3)” & “(2)” are sole proprietorship and partnership respectively.

Licensed property managers must adhere to professional conduct and rules set forth in Act 242 and Malaysian Property Management Standards. They are also required to take up professional indemnity insurance as well as fulfil compulsory CPD hours yearly.

Formal disciplinary proceeding will be launched by BOVEAP on complaints lodged against licensed Property Managers.

  1. Credibility

Paid up capital of a firm is an important indicator on the financial strength of the firm. An online SSM search will provide all necessary details of the firm.

Investment in infrastructure shows the commitment of the shareholders. Having a full-fledged office, website and company email adds to their credibility.

Conduct evaluation on sites managed by the Property Manager and how long they are managing the sites to get an idea of their reputation.

  1. Competency

Property Management involves multi-disciplinary fields from management, finance, procurement, engineering, legal, defect and etc. Look out for firms with stakeholders from diverse background.

Their professionalism and expertise in the various disciplines will be a key differentiator.

  1. Pricing

For most committees, pricing is the primary benchmark of comparison. They fail to realise that many Property Managers go low on price and gain from “other sources” such as kickbacks from service providers, contractors and even act as insurance agents to benefit from the huge commission for fire insurance policies.

This ultimately results in deterioration of the development.

Conclusion

The goal of licensing Property Managers under BOVEAP is to improve the professionalism in the industry and protect the interest of the public. Do the right thing to enhance the long term value of your assets.

Below is the link to related article by National House Buyer’s Association (HBA) on real life issues faced in developments:

http://epaper.mmail.com.my/2018/03/07/licensed-registered-property-managers-vs-unlicensed-non-registered-property-managers/

About Authors:

Sr Terence was formerly a Finance Manager based in Singapore who switched his career to Property Surveying. He’s the CEO at Invenio Potential. Dr. Kam has PHD in Facility Management & Degree in Building Surveying and she is leading the Defect Management & Procurement Departments at Invenio Potential. They can be reached at ww.invenioptl.com

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