Effective Property Management Research Articles

Effective Property Management in Increasingly Urbanized Cities

Properties are important to how people live, work and recreate, the increasing pace of urbanization has therefore further necessitated effective management of properties in the midst of limited resources and the need to optimize returns. This current study has focused on the effectiveness of property management in urbanized Nigerian cities with a case study of Ibadan. The survey approach was adopted. Data was drawn from professionals practicing in the city with frequency tables and weighted mean score used to present data findings. Findings revealed that; the inherent facilities and services within individual properties and the neighborhood are key drivers of rental values. Further results showed that urbanization has increased the rental value of properties in the market, increased market activities and clients are now more sophisticated in their needs. The challenges identified by the study include; difficulty in tenant section, poor sanitation and unsanitary environment, subletting and conversion of properties as being key challenges on property management foisted by urbanization. The study has been able to map a nexus between property management and urbanization and the need to adopt a proactive approach towards property management. The study concluded by advocating that property managers should enhance their skills by embarking on capacity development programs through training to better prepare themselves and meet client expectations.

GOVERNANCE OF STRATA BUILDINGS FOR URBAN CONSOLIDATION IN MALAYSIA

The need for urban consolidation is very necessary in helping the cities to be more dynamic in term of transformation, transparency and technology. Although the role of strata buildings in Malaysia is increasing, nevertheless this issue has been less explored. The continuous growth of strata buildings indicates the need for effective property management system that promotes and nurtures value that would create high quality of living. Currently, none of Malaysia’s city is listed in the City Momentum Index; which one of the criteria is strong governance and planning. Therefore, the need for strata building for urban consolidation is vital for governance and management in practice. The underpinning of this study is to assess the current law and practice at federal level and evaluate with the industrial practice. A key component of this research is to formulate the best practice of governance in term of policy for strata buildings in Malaysia. The issues that circling the governance matters will be identified and further researched. Moreover, the effectiveness of Strata Title Act 1985 (Act 318) and Strata Management Act 2013 (Act 757) are also needed to be evaluated in the current practice of strata buildings in Malaysia. Furthermore, the role of Commissioner of Buildings, Joint Management Body and developer as administrator who bears the responsibility to carry out the provisions of the Act also need to reconcile to ensure good governance of strata buildings in Malaysia.

Competency Requirement for Effective Property Management in Malaysia

A knowledgeable and skilled property manager will add value to the assets and increase customer satisfaction. Weaknesses in this aspect will affect the efficiency of a property manager in managing complex issues in real estate. This study focuses on competency requirements for effective property management in Malaysia. The objectives are to determine competency requirements for property manager in Malaysia and to analyse the relationship between competency requirements with practices of property management. The quantitative method was used through the questionnaire with 81 sheets distributed to the property manager. Descriptive statistics and correlation analysis were used for analysing the data. Skills segment and duties and responsibility were analysed with improved knowledge and skills, and the needs for essential skills variables. The result shows that strong communication skills and tenant control are the most important skills for a property manager. On the other hand, paying maintenance costs and collecting rent and property fees are the highest duties and responsibilities of the property manager. Based on the correlation analysis between competency requirement and practice, it was found that tenant control has the highest correlation with saved money variables in the essential skills segment.

Оцінка майна територіальної громади: актуальні проблеми та шляхи їх вирішення Анотація. Проаналізовано роль оцінки майна в процесі вирішення проблем територіальної громади. Визначено поняття «максимальна користь жителям територіальної громади», розглянуто оцінку ефективності використання ресурсів та її складові. Переглянуто різні рівні системи управління муніципальною власністю та методику управління муніципальною нерухомістю, їх зв’язок з оцінкою майна громади та різними підходами до її здійснення.

Annotation. Introduction. One of the trends in the development of the modern real estate market in Ukraine is the gradual growth of the real estate owners, and, accordingly, the change of the real estate management system, in particular, in the field of municipal management. Real estate, as a strategic asset, needs to be managed at a professional level. Therefore, the mechanism of property valuation of territorial communities is perceived as one of the tools of effective property management. Purpose. The purpose of this article is to find and scientifically substantiate the priority areas for improving the effectiveness of property valuation of territorial communities, and analysis related to the mechanism of evaluation of management aspects – goals, approaches, methods and characteristics. Results. The article analyzes the essence of effective management of municipal property – focuses on management goals, the priority of which is the creation of conditions for normal activities, both for each resident and all in general, analyzes the process of determining the effectiveness of municipal management in various fields and its characteristics, methods of evaluating the effectiveness of management. The main provision that guides real estate activities is that real estate development projects should meet the needs of consumers as much as possible. The views of domestic researcher N. Smentina on approaches to assessing the effectiveness of communal property – economic and social. The article provides a detailed substantive analysis of the concept of “real estate” within the complex development and its spatio-temporal characteristics that affect its value. The importance of the characteristic “optimal use of real estate” is determined. The “optimal use of real estate” reveals the conceptual content of the process of assessing the effectiveness of property use. Conclusions. Summing up, property valuation is especially important in the context of increasing the economic benefits from the sale of communal property, but the mechanism of property valuation of territorial communities in Ukrainian legislation still does not determine some specific aspects of municipal property valuation.. Keywords: property; property management; management efficiency; territorial community.

Оцінка майна в системі управління власністю: аналіз концептуальних проблем

Introduction. Today, significant property assets in the form of real estate and land are in the possession of Ukraine. To make a profit from property requires an effective management system, an important tool of which is the assessment of property value. Purpose. The main purpose of the article is to consider the obstacles to the development of property valuation as one of the tools of property management. The article also explores the peculiarities of the development of Ukrainian legislation in the field of property valuation and management, presents general recommendations for the development of the property procedure. Results. The author identifies eleven conceptual problems of use and development of property valuation in the property management system. Among the most important is the lack of detailed legislative and procedural support of the property valuation procedure, in particular – the lack of a register of state property (both functionally real estate and unfinished), insufficient regulation of land and property legislation. Insufficient guarantees of observance of the rights to possession and use of property (real estate) are considered as obstacles to the growth of the role of small and medium business, and as a negative trend in the lives of people in the temporarily occupied territory. The influence on the development of property valuation of such market characteristics as competitiveness and lack of free competition, which contribute to the determination of the final value of property such factors as monopoly and government decisions, is analyzed. Conclusions. The process of property valuation occupies a significant place in the process of effective property management, but in our country this procedure is still developing. The author emphasizes that a fair and objective assessment requires, above all, respect for constitutional rights and guarantees in the field of property. The second priority area for improvement is the formation of an integrated and complete legal framework in the areas of property management and land law, the creation of a complete register of all state-owned real estate. It is recommended to pay attention to the need to study the impact of the market on the final valuation. Keywords: property valuation; property management valuation; property valuation mechanism; small business; real estate use right.

Cluster and forecasting analysis of the residential market in Turkey

Purpose The main purpose of this study is to detect homogeneous housing market areas among 196 districts of 5 major cities of Turkey in terms of house sale price indices. The second purpose is to forecast these 196 house sale price indices. Design/methodology/approach In this paper, the authors use the monthly house sale price indices of 196 districts of 5 major cities of Turkey. The authors propose an autoregressive (AR) model-based fuzzy clustering approach to detect homogeneous housing market areas and to forecast house price indices. Findings The AR model-based fuzzy clustering approach detects three numbers of homogenous property market areas among 196 districts of 5 major cities of Turkey where house sale price moves together (or with similar house sales dynamic). This approach also provides better forecasting results compared to standard AR models by higher data efficiency and lower model validation and maintenance effort. Research limitations/implications In this study, the authors could not use any district-based socioeconomic and consumption behavioral indicators and any discrete geographical and property characteristics because of the data limitation. Practical implications The finding of this study would help property investors for establishing more effective property management strategies by taking different geographical location conditions into account. Social implications From the government side, knowing future rises, falls and turning points of property prices in different locations can allow the government to monitor the property price changes and control the speculation activities that cause a dramatic change in the market. Originality/value There is no previous research paper focusing on neighborhood-based clusters and forecasting house sale price indices in Turkey. At this point, it is the first academic study.

Outsourced property management: the regulations of the property manager

PurposeThe purpose of this paper is to identify factors on property management level for analysing incentives for an effective property management in an outsourced setting.Design/methodology/approachThis research is based on an interview study of a set of three real estate-owning companies and their contracted facility management companies’ property management teams.FindingsThe study concludes that the property manager within the facility management company is highly controlled by the contract between the real estate owner and the facility management company. However, this contract does risk the individual property manager to prioritise the wrong work tasks as she/he has to know exactly what to prioritise in each contract and consider in whose interest she/he performs each task, the real estate owner, her/him employer or the tenants.Research limitations/implicationsThe research in this paper is limited to Swedish commercial real estate sector.Practical implicationsThe insight in the paper is regarding how real estate owners create incentives for the facility management companies’ property management organisation and how that are perceived by the individual property manager.Originality/valueIt provides an insight regarding how the commercial real estate industry prioritises different work tasks and how incentives are created to enable effort.

An analysis of possibilities for the establishment of a multipurpose and multidimensional cadastre in Poland

An efficiently operating cadastral system may provide the basis for all processes for the purposes of rational and effective property management. The cadastre existing in Poland originates from the 13th century’s tradition of land management. However, the work on the construction of an IT cadastral system was only initiated with the issuance of Regulation on the Land and Property Register in 1996. The implementation of its provisions resulted in errors visible in the cadastral documentation up to the present day. Currently, the Land and Property Register i.e. a public register serves the function of the cadastre in Poland. Regulation of 1996 initiated the stage of transition of (both descriptive and graphic) documents from analogue forms to digital data carriers. Most often, this was done by means of scanning or digitisation of the existing resources. As demonstrated by earlier studies, the process often failed to include the updating of maps and the verification of the compliance of the descriptive part of the Register Documentation with its graphic part. Moreover, significant inconsistencies were observed between the data originating from the Land and Property Register and the Land and Mortgage Register i.e. a register of rights to properties. Low accuracy of the cadastral data, and the incompleteness of sets of spatial data about cadastral objects create a significant barrier to the construction of a modern cadastral system in Poland. This study constitutes the analysis for the construction of a multidimensional cadastre in Poland, and to identify the groups of problems associated with its implementation. Based on detailed analyses of regulation and conducted case studies, a possibility was indicated for a gradual evolution of cadastral data from the 2D dimension to 3D. The study considered technical and legal conditions of designing cadastral systems worldwide. The proposed solution offers an opportunity to accelerate the construction of a cadastral system which is an effective tool of property management policy in Poland.

ЕФЕКТИВНЕ УПРАВЛІННЯ КОМУНАЛЬНОЮ ВЛАСНІСТЮ ТЕРИТОРІАЛЬНОЇ ГРОМАДИ

The article focuses on such a direction of research as property management of territorial communities. The approach to the management of communal property strengthens the capacity of the territorial community, allows to make the work of local governments more predictable, aimed not only at ensuring social stability, but also at sustainable and balanced development. This contributes to increasing the investment attractiveness of the local community, improving the climate for the creation and development of high quality public services and business in the area. The problems of providing financial resources to the needs of territorial communities, which always attract the attention of politicians, scientists, practitioners and the public, are considered. After all, there are many contradictions in the legal field, characterized by insufficient interaction of local governments with civil society institutions, there is a high level of subsidies for local budgets and so on. The availability of sufficient resources in local budgets is a guarantee that the local community has the opportunity to provide better and more diverse services to residents, implement social and infrastructure projects, create conditions for business development, attract investment capital, develop local development programs and finance other activities to improve living conditions of community residents. Therefore, based on the above, it is possible to state the fact that territorial communities need to implement a system of effective property management. This system can be implemented in various documents, or included in the section of the Territorial Community Development Strategy, or approved as a separate Property Management Program. It was found that one of the important documents for determining the prospects of economic development and attracting potential investors (grantors) to the community is the investment passport of the local community. An investment passport is a comprehensive information marketing document designed for potential investors, which provides a brief description of the area with detailed information about the resources available in the community. The proposed approaches will provide an objective assessment of the state of asset management in the community and develop a realistic program for its further implementation in partner communities.

Is crime a real estate problem? A case study of the neighborhood of East Liberty, Pittsburgh, Pennsylvania

This study documents an intervention designed and implemented using the tenets of community operational research (community OR) approach to address crime in East Liberty, a neighborhood in the East End of the City of Pittsburgh, Pennsylvania. The intervention was implemented by a community development organization (CDO) with active engagement by the community. The multi-pronged strategy included real estate acquisition of crime hot spots, use of uniformed off-duty police, effective property management and a strengthening of the neighborhood's informal social controls. We used the community OR approach to examine both the processes and outcomes of the intervention. We found that the initiative was associated with a 49% reduction in residential crime in the neighborhood over the period 2008–2012, a trend that held steady till 2015 which represents the latest data analyzed for the present study. Evidence of the lasting impact of our strategy is that there has been little observed decay in the crime reduction even after off-duty police were withdrawn. We conclude that a community-oriented approach that addresses crime should emphasize strategies to improve and leverage the neighborhood's social cohesion and informal social controls for crime reduction to be sustainable. Similar interventions in the future may benefit from the study by conceptualizing and implementing community-engaged initiatives that are closely aligned to community OR principles.

Is Crime a Real Estate Problem? A Case Study of the Neighborhood of East Liberty, Pittsburgh, Pennsylvania.

This study documents an intervention designed and implemented using the tenets of community operational research (community OR) approach to address crime in East Liberty, a neighborhood in the East End of the City of Pittsburgh, Pennsylvania. The intervention was implemented by a community development organization (CDO) with active engagement by the community. The multi-pronged strategy included real estate acquisition of crime hot spots, use of uniformed off-duty police, effective property management and a strengthening of the neighborhood's informal social controls. We used the community OR approach to examine both the processes and outcomes of the intervention. We found that the initiative was associated with a 49% reduction in residential crime in the neighborhood over the period 2008-2012, a trend that held steady till 2015 which represents the latest data analyzed for the present study. Evidence of the lasting impact of our strategy is that there has been little observed decay in the crime reduction even after off-duty police were withdrawn. We conclude that a community-oriented approach that addresses crime should emphasize strategies to improve and leverage the neighborhood's social cohesion and informal social controls for crime reduction to be sustainable. Similar interventions in the future may benefit from the study by conceptualizing and implementing community-engaged initiatives that are closely aligned to community OR principles.

УПРАВЛЕНИЕ НЕДВИЖИМЫМ ИМУЩЕСТВОМ ПРОМЫШЛЕННОГО ПРЕДПРИЯТИЯ НА ОСНОВЕ ТЕОРИИ ЖИЗНЕННЫХ ЦИКЛОВ

In the process of large manufacturing enterprise management, the problem of the effective management of real assets is very important. Within a market economy, real estate is an expensive commodity, the value of which depends on many factors such as the type and class of property, type of use, the period of economic life, the wear rate, the economic situation in the country, etc. According to the conventional theory, the main performance indicator of real estate is the dynamics of its market value. In spite of the deep study of the theory of real property appraisal, the existing methods do not allow to adequately appraise industrial properties because they are developed for commercial or residential real estate. Thus we see obvious contradiction between the objective need in effective property management on industrial enterprises and lack of theoretical research in the field of real asset management. The paper deals with the analysis of life cycle theory for real estate management. The author suggests a function of the development of industrial real estate management policy based on life cycles of real estate, business and real estate market. The results can be used in the process of industrial real estate management.

Incentives in Swedish commercial real estate companies: the property manager function

PurposeThe purpose of this paper is to identify factors on the property management level for analysing incentives for an effective property management with a focus on organising it in-house.Design/methodology/approachThis research is based on an interview study of 11 firm representatives from the Swedish commercial real estate sector with in-house property management.FindingsThe study concludes that the property management organisation in the in-house setting is governed in an informal way, with a large portion of “freedom with responsibilities” setup instead of regulations.Research limitations/implicationsThe research in this paper is limited to the Swedish commercial real estate sector.Practical implicationsThe insights into the paper regarding how decision makers create incentives for the property management organisation can provide inspiration to design incentives for effort.Originality/valueIt provides an insight regarding how the commercial real estate industry prioritises different work tasks and how incentives are created to enable effort.

Occupants’ Perception of Quality Design and Standard in Building Services for Effective Property Management

Building performance evaluation techniques are hardly applied to occupied premises in property management practice in Nigeria. It undermines occupiers’ satisfaction as well as occupiers’ perception and action toward facilities. Tenants’ decision to stay or leave a property and the reason for conflict of interest over rent increment could be adduced to poor service quality and dissatisfaction. The need to measure occupiers’/customers’ satisfaction in dwelling houses also arises because it is now universally accepted that users have become more astute and their rising expectations need to be met. The specific objective of the study is assessment of occupiers’ satisfaction using quality performance criteria under the SERVICE QUALITY DIMENSIONS in selected high-rise buildings. The study adopted a cross-sectional research design approach. The data were collected through the aid of questionnaire survey to investigate 54 quality service and property performance indicators and were analyzed quantitatively. 106 questionnaires were returned from the 207 tenants of the selected buildings representing 51.2% response rate. The mean item score (MIS) for satisfaction level for each indicator was calculated and expressed in percentages to arrive at importance index for the purpose of ranking in line with the highest derived satisfaction level of the respondents. The study found that tenants are highly dissatisfied with communication, and lack of interaction becomes a major reason for non-satisfaction of service quality. Out of 52 indicators, only 8 environmental indicators show no significant difference between expectation and perception. Tenants were least satisfied with communications, service management, water quality and cost. Property management service delivery in Nigeria is not customer/user driven with 44 out of 52 indicators having significant differences between tenant expectation and perception of service quality and delivery. The study recommends improvement in communication gap, definition of occupier’s service standards for adequate service delivery and reduction of unsatisfactory service designs and quality.

Child Safety Policy in High-Rise Building as Preventive Measures of Child Falls–A Review

Urbanization is one of the factors that lead to the high-rise buildings construction and vertical commercial development in developed countries especially in high density area to ensure that housing stock is sufficient. The continuous growth of high-rise residential properties indicates that there is a need for an effective property management system to provide a sustainable high-rise residential property development. The children who live in high-rise residential would be exposed to danger or accident especially risk of fall from height and currently has been occurring nation-wide for many years resulting serious injuries and deaths. This incident can be avoided by incorporating simple child safety designs into new homes or by providing child safety features into existing homes. However, this matter requires the intervention of policy and legislation for the enforcement of the implementation. Hence, this paper attempt to reviews the literature concerning the needs of policy related to child safety for high-rise residential in order to control an accident involving children falls. The outcome of this study hopefully will ensure the implementation of child safety policy in order to prevent child falls and make sure the building is safe to be occupied especially for children.

Statistical Analysis For Impacts Of Economical Conditions on Housing Markets: An Example on Fragile 5 Countries

In the year 2013, Morgan Stanley declared the Brazilian real, the Indian rupee, the Indonesian rupiah, the South African rand and the Turkish lira as the Five, or the troubled emerging market currencies under the most pressure against the U.S. dollar. For those countries, housing market has been a key driver of growth and has been a steady and robust performer since the year 2000. The main purpose of this study is to investigate, modeling whether there is a long-run relationship between macroeconomic indicators and housing markets in Fragile Five countries by correlation analysis, regression, krigingmetamodelling for the twelve year period from 2002 to 2013. The findings of this paper would help government and property investors for creating more effective property management strategies in these countries.

English

The National Department of Public Works has the responsibility of providing office accommodation to all state departments nationally, The objectives of the paper are to establish a base for evaluating the performance of the process and secondly investigate the performance against this base. Critical success factors were found to be: Better site search and space management, Effective maintenance policy, Extensive feasibility studies, Standardised lease agreements, Effective property management, Sustainable site procurement and Client-driven service delivery. In the performance evaluation it was found that turn-around times were poor due to lack of resources, asset registers were incomplete, the frequency and quality of maintenance services rendered were unsatisfactory, and the implementation of Public Private Partnerships (PPPs) in the procurement of new sites were not seen as adequate partly due to political pressures. Key words: Office accommodation; state departments; provision of accommodation; process of accommodation, state departments.

Forecasting future trends in Dubai housing market by using Box‐Jenkins autoregressive integrated moving average

PurposeIt is important to forecast index series to identify future rises, falls, and turning points in the property market. From the point of this necessity and importance, the main purpose of this paper is to forecast the future trends in Dubai housing market.Design/methodology/approachThis paper uses the monthly time series of Reidin.com Dubai Residential Property Price Index (DRPPI) data. In order to forecast the future trends in Dubai housing market, Box‐Jenkins autoregressive integrated moving average (ARIMA) forecasting method is utilized.FindingsThe results of the ARIMA modeling clearly indicate that average monthly percentage increase in the Reidin.com DRPPI will be 0.23 percent during the period January 2011‐December 2011. That is a 2.44 percent increase in the index for the same period.Practical implicationsReidin.com residential property price index is a crucial tool to measure Dubai's real estate market. Based on the current index values or past trend, real estate investors (i.e. developers and constructors) decide to start new projects. Attempts have also been made in the past to forecast index series to identify future rises, falls, and turning points in the property market. The results of this paper would also help government and property investors for creating more effective property management strategies in Dubai.Originality/valueThere is no previous study analyzing the future trends in Dubai housing market. At this point, the paper is the first academic study that identifies this relationship.

A new evaluation procedure in real estate projects

PurposeThe main purpose of this paper is the formulation of an integrated procedure for the evaluation of real estate investments.Design/methodology/approachThe main methods for evaluation of real estate investments are presented initially. The paper analyses both the academic and the professional points of view of all these methods and compares them to each other, denoting that they could be implemented in the evaluation of real estate projects. Also, it presents the internal and external variables that influence the evaluation.FindingsThe primary focus is the calculation of the investor's interest (required return) in relation to the risk of the investment. In this framework the most common financial methods that have been used at an academic level in an attempt to estimate the risk‐return ratio of an investment are used and relevant proposals based on the available data and practices are made. The use of these components in a real estate investment in the Greek real estate market is tested empirically, giving future trends and prospects.Originality/valueA new integrated procedure for the evaluation of real estate investments is proposed. This methodological approach helps in effective property management and decision making in real estate projects.

MANAGING URBAN DEVELOPMENT PROCESS BY USING SPATIAL INFORMATION SYSTEM: A Case Study of I-Space

The advancement in Information and Communication Technology (!CT), particularly in relation to Geographical Information System (GIS), Computer Aided Design (CAD), Database Management System (DBMS), and Facility Management System (FMS), has provided the opportunity for urban government to adopt innovative and effective technologies to aid and improve the management and decision-making in urban development process. Among the obstacles that hamper effective management and decision-making in urban development process are the absence of integration between the works of the professionals involve in such process and the unavailability of immediate and reliable data to form the basis for sound decision-making. Thus, this paper proposes that a city-wide spatial information system to be developed comprising two major elements: a common platform for integrating the works of the various built environment professionals and a city-wide built environment database. While the common platform will help to streamline the works of the professionals, the database will assists urban government in making sound and informed decision in relation to planning, management, maintenance, and monitoring of the urban built environment. This paper highlights the efforts of the International Islamic University Malaysia (IIUM) in developing its spatial information system. The system is designed to provide information on the IIUM property that covers buildings, infrastructure, facilities, and space to decision makers and managers to help them in making sound decision and in implementing effective property management scheme.