TOPICs OF DISCUSSSION

Backgrounder of Professional Property Management (PPM) in the

Philippines.
What is Professional Property Management?
Objectives of Professional Property Management
Types of Properties
Professional Property Mgt Versus Traditional Building
Administration
Major Disciplines of Property Management
Engineering Operations & Maintenance
Security & Safety
Finance & Accounting
Janitorial & House Keeping
General Administration & Legal
Some Factors that Affect Building Value

BACKGROUND ON PROFESSIONAL
PROPERTY IN THE PHILIPPINES
PPM concept realized on early year of 1990.
Intelligent / Smart buildings constructed in 90s.
Traditional In-house Building Administration was employed.
Ayala took lead in PPM when it developed its own system for
their up-scale development.
Developers and property owners slowly recognized importance of
building maintenance to enhance the value of properties .
Popularized through the creation of PPM companies as Century
Properties Mgt., Inc.; FPD Savils; Ayala Property Management
Corp.; CBRE Phils. etc.
Institutionalized by making PPM part of the academe.

WHAT IS PROFESSIONAL PROPERTY MGT

(PPM)?
PPM is defined as achieving the objectives of
owners by preserving or increasing the value of an
investment property while generating income for
the owners.
It is also the ability to manage, maintain,
supervise, organize, direct, control, govern the
overall operation of a property functionally and
professionally for the benefits of more who use
it; and the maintenance & upkeep thereof to
preserve its value and marketability for the
benefit of owners/tenants.

OBJECTIVE OF PROPERTY
MANAGEMENT

Preserve property value.

Preserve life of the property.
Maintain marketability.
Optimize land/property use.

BASIC AREAS COVERED BY PROPERTY MANAGEMENT

Property Common Areas such as: Elevators, hallways, Common
Restrooms, Equipment/ machine rooms, Lobby Etc.

TYPES OF PROPERTIES
1Agricultural

Rawlands

Farm Lots

Depots
Warehouses
Terminal / Port Site

2Residential
Residential buildings
Apartments
Condominium
3Commercial
Commercial malls
Hotel / Condotel
Theaters
Dormitories / Apartel
Office/Comml building
Resort
Coliseums

5.Special Purpose
School
Fire station
Hospitals
Post office
Golf courses
Country clubs
Exhibit Centers
Memorial parks
Reflectional parks
Columbarium
Beach Resorts
Yacht Club

4.Industrial
Industrial estate

TRADITIONAL IN HOUSE
Vs. PPM
TRADITONAL IN-HOUSE

PROFFESIONAL PROPERTY
MANAGEMENT

BoD is saddled with the daily details

of operations

Property Management team manages and

Supervises daily operations; board of directors
as the deciding body, is able to concentrate on
their own business

Staff on their own

Operation and management by an

organization and onsite team

No employer-employee relationship with

the owners/no other labor concerns
Corrective approach of operations

Preventive and predictive approaches

Limited network

Extensive network with relevant private

and govt agencies

Alone in emergency situations

Backed up by corporate team

TRADITIONAL IN HOUSE
VS PPM
TRADITIONAL IN-HOUSE

PROFFESIONAL PM

Extended leave of staff interrupt

Has a pool of staff for continuity of

operation

business operation

Limited growth of staff

Continuous training of staff and

career development
Limited expertise for the

Qualified professionals for support

owners/occupants

and advisory services

Short -term low cost of operation

May be more costly at the start of

operations/should be able to generate

savings and implement cost efficient
Manual system of operation

Automated and computerized system

of operations
Always updated on related

government mandates/complies on the

time

MAJOR DISCIPLINES OF
FACILITIES MANAGEMENT
Engineering
Finance &
Accounting

PR / Tenant
Relation Mgt

Security &
Safety

PM
System
Automation

Admin & Legal

Housekeeping
& Janitorial

ENGINEERING
Basic Functions of Engineering
Maintenance
Preventive Maintenance
o Building Audits
o Spare Parts Stocks

Routine Maintenance

o Rectification & Repairs

o Improvement / Enhancement
o Energy Management Planning / Cost Saving

Equipment operations and maintenance

SECURITY
Security Management
Access Management electronic security
Traffic Flow (i) Park mgt (ii) Courier/Delivery (iii)Baggage
treatment
Personnel Security / Guard Force Mgt
Response to Legal / Criminal related Incident
Safety Mgt
Disaster Control

Building Occupants Safety Awareness Program

Natural and Man-made Disaster
Fire Brigade and Other Vital Trainings
o First Aid
o Fire Drills

FINANCE & ACCOUNTING

Accounting Management
Financial Report F/S
Bookkeeping / Accounting methods, Flow
& Budgeting
Obligation To The Building / Property
Owner / Occupants
Timely Collection of Monthly Dues
Fund Management

General Administration
and Legal

Contract Management and lease administration

Purchasing Management
Policies and Procedures
House rules and regulations
Building fit-out guidelines
Building guides / manual
Handling of Occupants Complaints and Requests
Submission of Monthly Operation Reports and owner/ condo corp.
Accounting
Security and Safety
Engineering
Janitorial and Housekeeping
Receivables
Cash flow
Outgoing project enhancement

Janitorial and Housekeeping

Housekeeping and Sanitations
General Functions of the Housekeeping Team

Basic Janitorial Equipment and Materials Requirements

Cleaning Methods and Procedures

Considerations in Planning Basic Housekeeping Procedures

Basic Cleaning Operations
Work Load Determination
Work Schedules vis a vis type of Property
Waste Management (dry/ wet) Waste Segregation

Monitoring Systems
- Comprehensive Pest Control Program
- Garden and Pool Maintenance
- Water Supply
- Utilities Management

Some Factors that Affect

Building Value
Physical Curable Poor Maintenance
Functional Curable Architectural
Defect / Obsolescence
Age (Straight Line Depreciation)
Marketability Presence of Squatters,
Flood Prone, Non-conformity with
location & Over / Under-improved
Buildings

Notes on The Video

Presentation
Clients Expectation for Property Mgt.

Maximize on rental and leasing.

Capital Appreciation for long term business
Day to day operation is constantly attended; has patience
and expertise.
If managing own property:
Tired of screening potential lessee.
Deals with Bounced check cause late repayment.
Make late call.
With Property Management
Maximize revenue
Cost effective operation
Delivery superior service
Minimizing expense

Owners Trust Real Property

Management With Their Properties:

Straightforward/Cost-Effective Fee Structure

Comprehensive Marketing Strategy to Fill Vacancies
Tenant Screening Including Criminal, Credit, Income, Employment,
etc.
Collection and Retention of Tenant Security Deposits
Timely Rent Disbursements to Owners
Rent Advancement Program
Direct Deposit for Owners and Online Payment Portal
Online Owner Access to Financials, Maintenance, and Reporting
Monthly Account Reconciliation by 3rd Party CPA
Audited Year-End Financials & Owner 1099 Preparation
Routine Internal and External Property Inspections
24/7 Maintenance and Emergency Services
Eviction Protection Plan
National Collections Presence
Risk Mitigation Policies and Procedures

Services
FACILITIES MANAGEMENT
Building and Grounds Maintenance
Systems Reliability
Utility and Infrastructure
Contract Administration
House Rules Implementation
Development Control and Monitoring
Customer Complaints Handling System
Supervision of contracted services
Liaison with government agencies and utility companies
Energy and Environmental Management
Financial Management
Leasing and Brokerage

Services
ESTATE MANAGEMENT
Urban Streetscape maintenance
Security and Traffic Enforcement
Emergency Brigade (Fire and Health)
Development Control and Monitoring
Permitting
Coordination with LGUs, Utility Companies
and Transport Service Providers

Services
WATERWORKS MANAGEMENT
Water Production and Services
Sewerage Treatment
Billing and Collection of Water Fees
Meter Installation
Maintenance of Water Lines and Meters
Water Potability Tests

Services
TECHNICAL SERVICES
Functional and Performance Testing and
Commissioning of Building/Facility
Equipment
Plan Evaluation
Project Management
Predictive Maintenance Services
Comprehensive Technical Audit
Vibration Analysis
Thermography Analysis

ENERGY MANAGEMENT
Supply and operations of District
Cooling System (DCS)
Performance contracting through the
Energy Saving Services (ESS)
Bulk purchase of electricity thru Retail
Electricity Supply (RES)
Utility Management

SAMUEL C. QUINIANO