3.

0 Property Planning and

management
by Dr M. Mbasera 2017
Property planning
• Property planning is essential for all new landholders/property
holders, and for those wishing to change the way they manage
their property and better understand how to work on the
property for developing and documenting the visions and goals
for a property.
Property management defined
Definition
It is an integrated approach to operating, maintaining, improving and adapting
the buildings and infrastructure of an organisation in order to create an
environment that strongly supports the primary objective of that organisation.
In general, property management includes tenant placement, maintenance and
repairs, and the ongoing administration of real property.
Tenant placement begins with advertising and showing the property, and it
ends when the tenant has signed all necessary paperwork, provided all
deposits and required rents, and has been handed the key to the property.
There are some factors affecting space or property described in the next
subset
3.1 Factors affecting space

• Location
• Prize
• Size
• Infrastructure
• Style
 Location
• “Location, location, location.” We’ve all heard that famous phrase, which
drives home just how important location is when choosing a space for your
office.
1.Can my clients get there without a hassle?
2.Can my employees get there easily?
• Think about the security of the neighbourhood as well and what’s close to
the office.
• Is there a gym nearby? Coffee shop? After work bar? Post office? School?
 Prize
• Price is probably the most important factor to most businesses when they’re choosing a new office.
• If you spend too little, you’ll either end up with an office you’re not happy with, or you may find
yourself moving out after a few months.
• Spend too much, and you might struggle to pay the rent or have to move again to downsize.
Neither of those scenarios are ideal.
• Here are a few important questions to ask when considering how much to spend on your next
office/working space:
1. Can I afford to pay a three month rent deposit on this office right now?
2. Have I asked about any hidden costs? (Maintenance, extra cost of parking, etc.)
3. Is this office priced in line with similar office spaces in the area?
• Question one gives you a very broad indication of affordability and asking about hidden costs helps
you protect yourself against being stung with charges you didn’t expect
• Always do a quick comparison with other offices spaces in the area to make sure you’re getting
value for money.
 Size

• Obviously both of the factors mentioned previously—location and price—will influence the size of
the commercial premises you choose, but it’s an important point to mention.
• As a very general rule, it’s normally recommended to have 70 square feet per person. However,
you know your business best. If your employees need bigger desks or more storage for example,
then up this figure appropriately.
• There’s also the issue of meeting and rest space. You’ll need an area to meet with clients, and your
colleagues need somewhere to eat their lunch!
• Here are a couple of simple questions that’ll help you work out if the offices you’re looking at are
the right size:
1. Will I have at least 70 square feet of floor space per person?
2. Do I have room to grow staffing levels in line with growth projections?
3. Do I have a dedicated space for meetings with clients?
4. Are my employees going to be happy with their social/recreation areas?
• There’s no doubt that a cramped office reduces productivity, so don’t skimp on floor space.
 Infrastructure

• This is a more important feature for some businesses than others.

• Nowadays however, there aren’t many businesses that can function efficiently without a reliable
internet connection. Some offices, particularly managed or serviced offices, generally include
internet access as part of their rent.
• If you’re leasing somewhere privately though, you’ll need to factor in the cost of getting a line
connected and the monthly payments for access.
• The quality and reliability of the service matters too. There’s no point paying for a service that is
being interrupted constantly or cracks under the strain of a particularly busy day.
• Infrastructure doesn’t just mean internet, either. What about postal services or telephone
connections? With mobile phones so prevalent these days the latter might not be that important to
you, but postal services are still crucial for signed documents or other physical items.
Infrastructure continues
• Here’s a series of questions for making sure the infrastructure in your new office is going to be
adequate:
1. Have I factored in the cost of any internet access into the price I’ll be paying
for this space?
1. Can I contact any other businesses in the building to share their experiences of the infrastructure?
2. Does this office have a dedicated postal address?
3. Can I ask the owner for a speed test to ensure that the ISP is providing sufficient service?
• The speed test is a really simple thing you can do to try and get real data that answers your
question. If the service is good, the owner isn’t going to think twice about providing it.
 Style

• Quite often this is pushed to the back of people’s minds while they’re searching for new offices. Although it’s
advisable to consider the “more important” factors like the four mentioned above first, there is still a lot to be
said for office style.
• If you’re a business that hopes to become a “brand” or wants to protect your brand image from the start, then
you’ll need to take this into consideration.
• An office/property can be a fantastic branding tool. Excelling businesses such as Apple have such grand
plans, and why should your office be any different?
Here are a few things that you should consider:
1. What other businesses operate in this area? Is it in line with the industry I’m in?
2. Does this office allow me to customize or brand the office space at no extra cost?
3. Would I be proud posting interior pictures of this office space to our website?
• If you’re answering no to any of these questions, you might want to reconsider.
• Some offices will add on costs to do even simple things like painting the walls or hanging pictures. Make sure
you’re aware, ahead of time of where you stand. An undecorated office isn’t going to help your brand image!
• Some offices will add on costs to do even simple things like painting the walls or hanging pictures. Make sure
you’re aware, ahead of time of where you stand. An undecorated office isn’t going to help your brand image!
 Cost of developing and construction of a property

• Here are some of the items you want to consider for development and
construction of a property
• Permitting cost and fees-building, inspection, certificate of occupancy,
sceptic system, well, impact fee, driveway
• Water & sewer connection i.e piping, municipal water, municipal sewer
• Utilities-Electrical connection
• Survey
• Engineering inspection
• Water well; Drilling, casing and cap development, pump and wiring,
trenching, piping, pressure tank, disinfecting etc., water treatment.
Cost of developing and construction continues

• Sceptic system-soil testing, design, installation

• Clearing-Grading: rough & final
• Earth work-Site drainage (wet or steep sites)
-Steep site: grading cut and feel
• Landscaping
• Paving-Asphalt or concrete
 Activity
• Estimate the cost of developing and constructing a hospitality property
of your preference making reference to the costing items discussed in
this lecture
 The cost of operation
Following the construction of the facility there will be on-going
costs associated with its operation.
Property operation and maintenance (POM) costs include labour,
benefits, maintenance, supplies, etc.
Energy costs:- electricity that usually accounts for 70% of energy
costs, fuel and water. The energy expenditure also varies by type
of property.
The more you spend on construction the more you will spend on
maintenance.
 The cost of operation continues
Cost of renovation or modification
There is need to put aside money for renovation in each year of
operation.
• In most cases major renovations and equipment replacement
require the owner to provide additional capital.
• It also depends on the size and scale of the property
 Rationale for property management

The management of a property is important for:

Assuring compliance with ever-changing governmental
regulations
Maintain the property market value.
Enables for cost effective way of operating.
Enables the production of quality/ best value delivering
of service.
Serving as a liaison between tenants, site personnel,
and landlords.
 Rationale for property management continues

Customer satisfaction.
To safeguard occupancy against accidents.
Improve the efficiency of the property to provide the
right environment for conducting their business.
Monitoring and reporting financial transactions in
respect to the property.
Types of Properties
Real property can be divided into two broad categories:
Residential properties which are apartment units or
houses where people live.
This covers a broad range of housing types, many of
which use the services of a property management firm.
Types of Properties continues
Commercial properties that are typically non-residential
(or not exclusively residential) and are leased to various
commercial businesses.
These businesses vary greatly in size and usage
requirements.
Their management, though similar in some ways to
residential, is generally more complex in terms of leases,
rents, and space requirements.
Types of Commercial Properties
Office buildings include many types of buildings, from sky-
scrapers to convention centers and medical centers.
Shopping centers, malls, and research parks also have
multiple renters, which are generally made up of different small
businesses leasing individual spaces in a collective development.
Warehouses store merchandise inventories for large
businesses, while self-storage units offer smaller spaces for
individuals or small businesses to store personal belongings,
business records, etc.
Industrial complexes range from large manufacturing sites to
small independent services.
Types of Hospitality Properties
Hotel
This is a commercial establishment providing lodging, meals, and
other guest services on a short term basis.
A hotel provides paid lodging to tourists and may also provide a
number of other services or amenities, such as a restaurant,
swimming pool, and/or spa.
Many hotels are also arranged to hold conferences and
meetings, thus making them useful locations for business
meetups.
Motel
Is a word derived from the term "motorist's hotel."
This was a term used to indicate when a hotel provided ample
parking, a feature that is particularly useful to long distance
travellers on major highway and interstate systems.
DISCUSS OTHER FORMS OF HOSPITALITY PROPERTIES
 Qualities of a Property Manager
In nearly all aspects of the work, property managers are
communicating with people such as:
the landlord and tenants,
onsite personnel,
subcontractors, and employees,
Hence the manager is expected to communicate
responsively and reliably.
 Qualities of a Property Manager
continues
• The property manager needs to be pretty good at
reading people and have good intuition
• Give careful attention to detail
• You need a cool head, as you’ll serve as the diplomat
when conflicts and challenges arise.
• A good property Manager will be organized, managing
all the little odds and ends to keep the system running
smoothly.
• Integrity fosters trust which in turn builds loyalty
Qualities of a Property Manager
continues
• Ability to empower staff. A good manager empowers staff
to perform at their best
• Ability to motivate. People perform best when they are
happy and motivated
• Ability to delegate. A good manager understands the
skills and abilities of staff and knows how to delegate
• Adaptability. Ability to adjust quickly and to understand
the implications of changes, adjusting goals and
strategies accordingly
Qualities of a Property Manager
continues
• Action. To be prepared to take action and
address problems as they arise.
• Role model. Able to set an example to all staff of
appropriate behaviour and performance
standards
• Value people. Able to listen to people and be
fair and understanding. However, this doesn't
mean they can always keep everyone happy.
Activity
• What are the factors affecting space for your property
• Discuss the qualities of a good property manager