物业管理英语课程PropertyManagement

物业管理英语课程PropertyManagement

物业管理英语第一讲：Property Management

Property management is the process of overseeing the operation and maintenance of real property to achi eve the objectives of the property owner. Sometimes owners manage their own property, particularly smal l properties and particularly when they themselves o ccupy part of the space. But for larger properties or those whose owners live at a distance, manag ement is usually performed by a paid property manag er, either an individual buildings on long-term leas es, where tenants maintain the building, pay the ta xes and insurance,

and mail the owner a check each month. But most r esidential, office, retail, and many industrial prope rties offer services along with the space over time .

Property management has long been an underrated func

tion in the real estate industry. The need for p rofessional management did not become apparent until the depression of the 1930s, when numerous foreclo sures revealed a pattern of management deficiencies. This oversight might seem strange, since running a large commercial or residential project in which hundreds or thousands of people reside or work is a highly challenging task, calling for training, g ood judgment, variety of technical skills. Traditiona lly, however, emphasis in the real estate industry has been on the so permanent elements of the inves tment-good location, construction, and reasonable long -term financing-than on the day-to-day operation of the property. It has sometimes seemed as if a pr operty owner, having made a very large investment i n the permanent structure, assumed that the property would run itself with a minimum amount of supervi sion.

This concept of property management has changed subs tantially in the past decade. In an era of rising costs, it has dawned on owners that good property

management is the major controllable influence on residual cash flow (i. e., the number of dollars t hat end up in the owner’s pocket). It is true that both rent rates and op erating expenses are largely shaped by market forces beyond the control of any one property owner (wit ness the very sharp rise in energy costs in the 1 970s). But it is also true that comparable properti es within the same geographic area often show signi ficant variances in rental income and operating cost s. Why? Close inspection often shows that “above-av erage”operating expenses and lower than average re nt levels result from inadequate property management.

The classic mistake of the stock and bond investor moving into real estate involves underestimating th e importance of management. Some investors have the feeling that real estate manages itself.

There is a story about the importance of property management. A San Francisco real estate broker recen