the5 mostchallengingprofit killers

5 Most CHALLENGINGProfit Killers

for Luxury Condo Property Management

A Comprehensive Research Study byEmpire Research Team

Presentation Rights Granted to Jowers & Co.

Areas Covered

© 2008- 2009 Empire Research Team

• Overview of Changing Trends for Property Management

• Challenging Profit Killer #1 – Shockwave Effects of the Mortgage Crisis

• Challenging Profit Killer #2 – Sky-Rocketing Insurance Rates and Property Taxes

• Challenging Profit Killer #3 – Increasing Claims of Health-Related Problems

Areas Covered

• Challenging Profit Killer #4 – Responsibility Consolidationand OVERLOAD

• Challenging Profit Killer #5 – Market Saturation and Higher Costs

• What Does This Mean for Property Management?

• How to Stay Efficient and Effective


Areas Covered

• Employment and Contract Services

• The Silent Profit Killer - TIME

• Staying Competitive


Overview of Changing Trendsfor Property Management

• Foreclosure filings on nearly 234,700 properties in March ’08 showed a 57% increase over the prior year.

• The current property manager labor pool is aging; with a lack of young people entering the profession.

• Nationally, condo sales fell 10.4 % since 2006, which is nearly 2% more than the existing home market fell.

National Real Estate Investor - May 1, 2008, By Joe Gose; Atlanta Business Chronicle, May 2nd 2008© 2008- 2009 Empire Research Team

Overview of Changing Trendsfor Property Management

• The Multifamily Condo Market Index, showed a confidence level of 18.8 (out of 100) at the end of last year, down nearly 11 points from the end of 2006.

• National Association of Home Builders showed about 2/3 of condo developers had lowered prices to bolster sales.

• 10 years ago, virtually NO school offered a bachelor’s degree in real property management; today several do.

http://atlanta.bizjournals.com/sacramento/stories/2008/03/31/focus2.html; EpiCity.com – Tom Stokes article© 2008- 2009 Empire Research Team

Challenging Profit KILLER #1Shockwave Effects of the Mortgage Crisis



• Over 110+ U.S. lenders BANKRUPT

• Operations seriously DAMAGEDat many major mortgage firms

• 5 hedge funds WIPED OUT

• Tens of thousands of jobs LOST

• MILLIONS of foreclosures with MILLIONS more on the way

• MASSIVE VOLATILITY in the stock, bond, credit, futures, and real estate markets here in the US and around the world

Mortgage Crisis Overview:

http://www.flagshipfinancialmortgage.com© 2008- 2009 Empire Research Team


http://www.flagshipfinancialmortgage.com; AARP Bulletin Today, February 4, 2009

• The culprit…? Sub-prime Loans

• Estimates are that losses in the mortgage securities market alone could reach HUNDREDS of BILLIONS of dollars through 2008.

• According to RealtyTrac, an industry group, foreclosure filings skyrocketed by 81% in ‘08 over the previous year and by 225% over ’06.

Mortgage Crisis Overview:



• Sales of previously owned homes, including single-family, townhomes, condominiums and co-ops, DROPPED a

seasonally adjusted 2.2 percent to an annual rate of 4.91 million units from a rate of 5.02 million in July ‘08.

• August ‘08 figures are also down 10.7 percent from the same time last year.

- National Association of Realtors

Mortgage 101 - Amber Nelson on September 29th 2008© 2008- 2009 Empire Research Team


AARP’s Public Policy Institute 2008 study

• 684,000 homeowners age 50 or older were delinquent on their mortgage during the last half of 2007, with some 50,000 already in some stage of foreclosure.

• The over-50 crowd represented about

28% of all foreclosures and delinquencies nationwide.

Older Population Hit Hard By Foreclosure Crisis



• The foreclosure wave is likely to last well into the beginning of the next decade, as there are an additional

$67 BILLION in pay option ARMs due to reset in 2010.

“The combined impact of payment shock, negative amortization, declining home prices and restricted availability of mortgage credit may leave many option ARMs’ borrowers unwilling to continue paying their mortgage.”

- Huxley Somerville, Group Managing Director and U.S. RMBS group head



Federal Bailout to Total $700 Billion in Upfront Costs - Mortgage 101, September 2008

• In subsequent action from the Bush administration, that bought up MILLIONS of soured mortgage securities from Freddie and Fannie and to help bankrupt AIG will initially

cost the federal government, and consequently the taxpayers, $700+ BILLION, but there is no clear picture as to how much more could be required as time goes on.



2008 InsuranceRate.com

• AIG recently announced that it will no longer write coverage for condos in HUNDREDS of ZIP codes nationwide designated as having “declining” conditions.

• This ban applies regardless of an applicant’s credit, assets, or equity stakes.

Recent restrictions by major private mortgage insurers will make it impossible for many condo owners to get the PMI (private mortgage

insurance) they need to buy or refinance a condo.



2008 InsuranceRate.com

• Fannie Mae and Freddie Mac, two MAJOR financing sources for condominium projects, have both introduced new procedures that could reduce the availability of financing to condo buyers in upcoming months.

• Fewer people will have the option to buy or refinance a condo unless they can come up with a 20% down payment.

• Similarly, the extraordinary demands placed on lenders by investors will likely result in fewer condo loans being offered.



www.bizjournals.com/atlanta/ - Property managers confronting new challenges - May 2, 2008

• The property management business as a whole is feeling the impact of the current slowdown in property sales.- Ken Manson, vice president and director of management services for Grubb & Ellis Co.

• "When transactions slow, so does the property management business," Manson said.

• Fewer properties changing hands decreases opportunities for third-party management firms, he notes, "and owners as a whole get more cautious about bringing in new managers."


SOLUTIONS FOR:Shocking Effects of the Mortgage Crisis


1. Associations need a company with a strategy to assist owners with HOA payment difficulties, foreclosure, and declining home values.

2. Need a proactive manager that has a true short and long term property management plan.

3. Knowledge of the local market and economic climate, with intelligent cost-conscious suggestions to the board.

Challenging Profit KILLER #2Sky-Rocketing Insurance Rates & Property Taxes



• Risk managers at property management firms across the United States are facing increasing challenges as they grapple with Higher Insurance Rates and more natural catastrophes.

- David Kaiser, Business Insurance(March 2007)



• "Two of the things property managers have to deal with regularly in this business are…

1) Increasing Insurance Rates2) Property Taxes

• They seem to go hand-in-hand," said Ben Cecchini, asset manager at Quest Property Management in Portland, Ore.

www.businessinsurance.com/cgi-bin/article.pl?articleId=21366&a=a&bt=grapple© 2008- 2009 Empire Research Team


www.businessinsurance.com/cgi-bin/article.pl?articleId=21366&a=a&bt=grapple

• Since the Sept. 11, 2001, terrorist attacks, insurance rates for the properties managed by Signature Associates have more than DOUBLED, rising from around 10 cents per square foot to more than 20 cents, he said.

• Two Primary Factors:1. The insurance industry spreading its risk-loss ratio of terrorism…over its entire portfolio in an attempt to make up for some of those losses.

2. The insurance industry was spreading losses for natural disasters, floods and hurricanes that were occurring."



http://www.bizjournals.com/atlanta/stories/2008/05/05/focus6.html

• Utility cost INCREASES and EVER-GROWING property taxes present major challenges for today's property manager.

- Florence Barbour, regional vice president of Boston-based Winthrop Management L.P. and president of the Atlanta chapter of the Building Owners and Managers Association (BOMA).



BusinessWeek - A reversal in property taxes?; by: Dean Foust on June 21, 2007

Year Personal Income Property Taxes

1990 6.78% 9.28%1991 4.94 7.961992 4.61 7.341993 5.32 5.221994 4.16 3.901995 5.86% 3.20%1996 4.99 2.941997 6.18 4.481998 6.81 5.171999 6.27 4.142000 6.61% 3.97%2001 6.22 5.822002 2.02 5.882003 2.19 6.272004 4.66 7.272005 3.89 6.162006 4.12 6.23

Federal Tax Foundation Chart:

GA Property Taxes vs.Personal Income

…Georgia Property Taxesrun a CONSISTENTLY HIGHERRATE than Personal Incomegrowth…



How can you curb Property Risks and Reduce Insurance Premiums?

1. Make sure owners and tenants are aware of city codes and safety requirements.

2. Pay attention to basic safety measures. (I.E. stairways are well lighted, evacuation procedures posted, etc.)

"We have added things like sprinklers to our warehousesand have recalculated hydraulic factors in some of ourolder buildings to make sure they meet current code requirements." Mr. Cecchini, Quest Property Management



www.businessinsurance.com/

The BENEFIT to Your Owners / Tenants?

• “Our clients also appreciated our efforts to reduce their costs," Mr. Perlin, Property Manager for Signature Associates

• "We made our efforts at no cost to our clients and gained client satisfaction and tenant retention simply because we showed that we were looking out for their interests.

• "When looking for new business, we also showcased this effort as a good example of how we attempt to keep costs down for the owners of the properties we manage."


SOLUTIONS FOR:Sky-Rocketing Insurance Rates & Property Taxes


1. Keep owners well informed with constant communication regarding how their property is being managed.

2. Property Managers need to review active insurance policies, and ensure proper coverage and protection.

3. A successful management company has a personal relationship with its residents.

Challenging Profit KILLER #3Health-Related Claims and Infraction Liability Problems


The American Institute of Architects© 2008- 2009 Empire Research Team


• Every major city is seeing a dramatic INCREASE in urban condominium projects.

• Realtor Magazine reported in 2006 that, “Condos now account for 12.8% of the housing market, a 33.3% rise over the last decade.”

• The Multi-family Housing Market Index, published by the National Association of Homebuilders (NAHB) in 2007, said, “Condos are the strongest category in multi-family construction.”

The Demand for Condominiums

The American Institute of Architects© 2008- 2009 Empire Research Team


The Accelerating Risk • Condominium management carries with it an unusual risk and higher than average number of claims.

• Condominium units often sell for prices ranging from $250,000 to $1 Million+. High-end residential construction generally leads to high expectations.

• When you stack 50 to 100 of these luxury homes in a high-rise tower there is the potential for a major lawsuit if the building fails to match up to the marketing materials or, worse yet, contains code violations, leaks or mold.

The Lewis-Chester Group© 2008- 2009 Empire Research Team


Common Examples of Property Management Liabilities:

1. Mishandling of accounting & financial matters 2. Mismanagement 3. Exceeding authority under the contract 4. Failure to perform under the contract 5. Failure to obtain certificates of insurance from

contractors for Workers' Compensation insurance, resulting in owner being liable for the premiums

6. Giving incorrect property values, resulting in uninsured losses or excessive premiums

7. Failure to maintain an adequate amount of insurance

William Gallagher Associates - Risk Management for Mold Hazards to Commercial Building Owners and Managers

• Mold-related claims are increasing at an alarming rate all over the country.

• Mold can give rise to liability issues on behalf of the building owner.

• Property owners should be aware that the potential for liability exposure is real, and complaints of health issues should be treated seriously and promptly.



Tough issues confront property managers - Real Estate Weekly, by Lois Weiss

Building owners and managers are facing tough issues that center not only on the health of building visitors and residents, but must also rely on their support to help the environment. - Real Estate Weekly, by Lois Weiss

• There is also worry of the impact of lead abatement and affects on residential owners.

• "They say it's the asbestos of the 90s".

• The cost could be staggering. If lead must be abated it could run between

$7,000 and $12,000 per unit on average to clean it up.



• That is a MAJOR IMPACT on the cost of operation.

• Lead lawsuits continue to be a problem and speakers at a Community Housing Improvement Program (CHIP) seminar were troubled by insurance companies that are excluding lead problems from

coverage and lawsuits that result in jury awards in the MILLIONSof dollars.

Tough issues confront property managers - Real Estate Weekly, by Lois Weiss© 2008- 2009 Empire Research Team


www.surgeongeneral.gov/topics/indoorenv/pdf/HIEWorkshopBinder.pdf

• According to the Centers for Disease Control and Prevention (CDC)

in just the past 25 years, the evaluations related to indoor air quality concerns have increased from one of every 200

evaluations to one of every two.



http://findarticles.com/p/articles/mi_m3601/is_/ai_15812829

• The attorney general's continued investigation into Indoor Air Quality (IAQ) has also had an effect of making people concerned.

• People want to be much more cautious than ever.

• Owners are concerned with tenant retention and the amount of attention needed to ensure a quality operated building.



SOLUTIONS FOR:Health-Related Claims and Infraction Liability Problems

1. Act quickly to resolve anycomplaints or reports; fast action often heads off legalities.

2. Be sure your property shows“as advertised” – bold claimswithout backing invite trouble.

3. Take proactive steps to stayahead of the regulations – don’t be caught in a “reaction” mode to air quality, health issues or other liabilities.


Challenging Profit KILLER #4Responsibility Consolidation and OVERLOAD



• In this day of…

+ security concerns+ emergency planning and disaster recovery+ rising insurance costs+ mold

a day in the life of a Property Manager has changed tremendously, and so have the standards for Property Managers.

• Gone are the days when fixing the plumbing and collecting rent is considered management.

Answering the challenges of today's management standards - Property Management - Real Estate Weekly© 2008- 2009 Empire Research Team


Typical Major Tasks of Property Managers:

1. Pay bills every month2. Collect and track assessments for each unit owner every month3. Coordinate repair and maintenance services4. Respond to phone calls and correspondence from other unit-owners5. Prepare all necessary documentation for any sale or refinances within the

property6. Coordinate board meetings7. Deposit monthly assessment payments8. Prepare annual budgets9. Prepare financial statements and bank reconciliations10.Maintain compliance with state and industry regulations



Trends and Innovations in Property Management Systems – Dick Jonilonis

• The time factor is an especially major concern for Property Managers based on the many associated demands and volume of their operations.

• I.E. checks to owners and vendors, receipts to process, and monthly reports to prepare and distribute, etc.

• A one week delay in operations will usually create MAJOR PROBLEMS at many levels, and could result in lost business, mortgage and/or property tax delinquencies, and even DRE violations.



• “One challenge is utilizing the resources at a company's disposal to properly service the clientele, no matter what area needs the servicing.”

• "It's being flexible enough to help them with more than one problem.“

• “To not only be a jack of all trades, but be a master of them.”

Koeppel Tener Real Estate Services© 2008- 2009 Empire Research Team


• Due to increased owner expectations and increasing competition, the new trends consists of trying to improve services by doing better than you did before.

• "It's constantly improving your services in order to remain competitive."



But other PROBLEMS abound…

• The BIGGEST long-term problem facing today's property management business revolves around demographics.

• The current property manager labor pool is aging.

• “With a lack of young people entering the profession, there's really no one there to fill in the gap when property managers from the baby boom generation start to retire.”

http://www.bizjournals.com - Property managers confronting new challenges - May 2, 2008© 2008- 2009 Empire Research Team


http://www.bizjournals.com - Property managers confronting new challenges - May 2, 2008

• "Recruiting young professionals to grow a pool of property management employees is becoming a huge challenge.”

- Florence Barbour, president of the Atlanta chapter of the Building Owners and Managers Association (BOMA).

• "This is something that is really on our 'radar screen' at BOMA -- and one of our major initiatives is to increase the number of young professionals involved with our organization."



RealtyTimes, December 28, 2007 by Blanche Evans

• Today, sophisticated Property Managers have to manage the physical aspects of the job, and oversee their asset management duties.

• The problem is the two-year training cycle clashes with the 31% annual turnover rate, which suggests that salaries aren't complementing the demands of the job.

Why aren’t Gen X and Gen Y interested in Property Management?



RealtyTimes, December 28, 2007 by Blanche Evans

Why aren’t Gen X and Gen Y interested in Property Management?

• Gen Xers have seen THREE housing meltdowns in their lifetimes in the early 90s and 2008, and now when you see more people lose money than make money, it's hard to recruit.

• Gen Y's young workers are about 12% of the real estate workforce. They have a different value set than the workaholic baby boomers. They want flexibility and insist on a better work-life balance.



• The current wave of Property Management is seeking PROFESSIONAL assistance to the INCREASING demands.

• Consolidated solutions that cover the wide range of responsibilities and workload involved with properly fulfilling owner and tenant needs.

• There’s an ALARMING number of ‘Burnouts’within the Property Management industry – much of which could be avoided by securing comprehensive PROFESSIONAL assistance.


SOLUTIONS FOR:Responsibility Consolidation and OVERLOAD


1. Have a business model that stresses specialization or “core- competency” and outsources the rest.

2. Outsource contracts go to companies with a proven track record and reputation for decreasing costs.

3. Partner with a responsive provider that also creates less work for the manager.

Challenging Profit KILLER #5Market Saturation and Higher Costs



© 2008- 2009 Empire Research TeamJournal of Property Management, by Bentsen, Lan - http://www.allbusiness.com/management/473435-1.html

• The golden age of real estate management took place from 1965 through 1980 when an ever-increasing stream of baby boomers turned 21.

• These newly independent adults needed a place to live, a place to work, and a place to shop.

• Each year brought a new high water mark in demand for real estate.

The Golden Age of Real Estate Management


The Golden Age of Real Estate Management

• The BABY BUST cut the rate of new household formation in HALF, but it took several years for development to slow down.

• The resulting OVERSUPLY of commercial and residential real estate brought havoc to the entire industry, including Property Managers.

Journal of Property Management, by Bentsen, Lan - http://www.allbusiness.com/management/473435-1.html


© 2008- 2009 Empire Research TeamJournal of Property Management, by Bentsen, Lan - http://www.allbusiness.com/management/473435-1.html

• Managers faced wrenching changes as properties went from investors to receivers to lenders to investors.

• As a result, managers have experienced:

* reduced fees due to reduced income

* increasing competition from syndicators and developers

* fee cutting due to increasing competition

* foreclosures that severed longstanding relationships

* ownership that is increasingly institutionalized



• “Getting the new business is TOUGH.

• Keeping clients once you get them is even TOUGHER.

• These are only two of the various challenges that keep property management professionals busy these days.”

Property managers confronting new challenges - Friday, May 2, 2008


© 2008- 2009 Empire Research TeamFriday, September 7, 2007 - Cracks in condo market, Charlotte Business Journal - by Susan Stabley

• Analysts and many developers now worry that supply is already far EXCEEDING demand.

• The number of new units on the market represents a 29-month supply, based on the current rate of closings, according to an analysis by Metrostudy, a national market-research provider to the housing industry.

• A 6 to 8 month supply is considered a healthy market.- Bill Miley, Metrostudy's Charlotte market manager



• The Property Management business as a whole is feeling the impact of the current slowdown in property sales.

- Ken Manson, Vice President and Director of management services for Grubb & Ellis Co.

• "When transactions slow, so does the property management business," Manson said.



• “Fewer properties changing hands decreases opportunities for third-party management firms, and owners as a whole get more cautious about bringing in new managers.“

• A decrease in the tenant-in-common (TIC) 1031 tax-free property exchange-related business has especially cut back on new business.

- Charles Swain, President of Colliers Spectrum Cauble Management.


© 2008- 2009 Empire Research Teamhttp://www.bizjournals.com - Property managers confronting new challenges, May 2, 2008

• Rising utility cost and ever-increasing goods and materials cost present major challenges for today's Property Manager.

• Many buildings have seen recent increases in these items totaling as much as $1 per square foot.

“The challenge is keeping these expenses down so that owners and tenants are not affected. They have to be paid -- but you certainly don't want to have to cut into customer service, amenities or the other nice things you do for properties.”

- Florence Barbour, regional vice president of Boston-based Winthrop Management L.P.


© 2008- 2009 Empire Research Teamhttp://www.bizjournals.com - Property managers confronting new challenges, May 2, 2008

• In addition to dealing with RISING COSTS, assisting owners with participation in Leadership in Energy and Environmental Design (LEED) initiatives aimed at promoting buildings that are:

+ environmentally responsible+ profitable and+ healthy places

is a big part of the property management business today.

- Jones Lang LaSalle Inc. Managing Director Linda Bolan.


© 2008- 2009 Empire Research TeamNational Real Estate Investor, July 1, 2008


• Property Managers are under increasing pressure to generate value for clients as some sectors of commercial real estate show signs of softening.

• For managers, that renewed focus on value means paying close attention to tenant services and operating efficiencies. Those companies that can deliver value in this choppy economic climate will continue to garner new business.

© 2008- 2009 Empire Research TeamNational Real Estate Investor, July 1, 2008


• Efficiency is in line with the growing emphasis on creating greener buildings. Certainly part of the focus is driven by soaring fuel costs.

• Natural gas prices rose 10.7% in 2007, while

the cost of heating oil rose 35% according to the U.S. Energy Information Administration.

• Those higher prices are a big concern for property owners and tenants since commercial buildings are huge energy users.

• Buildings are responsible for 39% of energy consumption in the U.S., according to the U.S. Green Building Council.

SOLUTIONS FOR:Market Saturation and Higher Costs


1. Weigh the heavy burden and liability of “In House Staffing” vs. outsourcing to a vendor.

2. One source that covers your people management, cleaning, lights, landscaping and light maintenance needs reduces headaches and costs.

3. Have a technical building engineer for expertise on retainer.


What Does This Mean forProperty Management?

• If you’re not AHEAD of the trends, then you’re BEHIND in the times!

• In these current economic times – you MUST be strategically EFFECTIVE and EFFICIENT!


How to Stay Efficient and Effective

Take a SERIOUS, in-depth look at the operationsside of your business.

1. Where is most of your Property Managers’time wasted?

2. Are you consistently having to monitor theactivities of employee grounds personnel?

3. Are there too many vendors being attendedto - taking away from other important responsibilities?

4. Is supply ordering an increasingly additionalburden?



It’s impossible to run a lean, Effective andEfficient machine if…

• Property Management is directing andfollowing-up with maintenance employees.

• Property Management is the soleresponsibility for product and supply ordering.

• Property Management must coordinate andfacilitate the cooperative efforts with multiplevendors.

• Property Management must deal with themultitude of HR issues from the entireemployee staff.



Does it make better FINANCIAL SENSE and TIME EFFICIENCYto employ personnel in-house, or contract the servicesof EXPERT professionals?

Let’s take a look at some resources on the subject, and some side-by-side comparisons…


Employment and Contract Services

DEFINITIONS

An Employee is defined as a person on the actual payroll. Employees exclude temporary and contract workers but include the owner or manager if that person works at the firm.

An Independent Contractor is defined as a person engaged in an independently established business - a person engaged in an occupation that contracts to work according to their own methods, without being subject to control of the employer except for results.



For many years, Property Management firms have been well aware that they can be held liable for the wrongful acts of those they hire and that greater liability is associated with workers hired as employees than exists for independent contractors.

This difference in liability relates in large part to the degree of control over workers' activities.

The issue of control also is a primary criterion in the distinction of employee versus independent-contractor status.

Journal of Property Management - By McBride, John



http://www.associationtimes.com/articles2004/empIndCont090104.htm

According to the Association Times (a resource for community associations),here are the MAJOR ADDITIONAL EXPENSES linked to Property Managementemployment:

1. Salaries2. Benefits3. Payroll and Unemployment Taxes4. Labor Law Disputes5. Wage and Hour Claims6. Overtime7. Workers Compensation Coverage8. Responsibility for Most Worker

Negligence Occurrences



http://www.associationtimes.com/articles2004/empIndCont090104.htm

• The employer also AVOIDS having to supply office space, overhead, equipment and supplies normally associated with an employer/employee relationship.

• Furthermore, if the employer becomes unhappy with the worker's performance, it can easily change to another independent contractor without having to experience the trauma associated with terminating an employee.



https://ssl.perfora.net/smartlegalforms.com/guide.asp?level=2&id=747

1. A company does not have to pay payroll taxes and benefits for an independent contractor.

2. A company can maintain flexibility with its workforce, not just in the number of workers, but also the skills that the business might need at a given time.

3. One of the most important benefits of hiring independent contractors is that the hirer does not assume tort (personal injury) liability for an independent contractor.

What are the MAJOR BENEFITS for hiring professional Contract Services?



Earlier, we discussed the OVERLOADEDresponsibilities that has become more prevalent amongst Property Managers.

Understand that just utilizing professionalContractor Services doesn’t solve all yourproblems…

The PROBLEM of managing and coordinating the efforts of MULTIPLE service contractors can be an additional strain on time resources…

Note this IMPORTANT point!


The Silent Profit Killer - TIME

How much time does your Management Team divert to:

• Ordering New or Specialty Supplies

• Monitoring Supply Quantities

• Checking and Changing Light Bulbs

• Arranging Large Item Waste Disposal

• Managing In-House Personnel

• Following up on Maintenance Personnel

• Coordinating Special Events

• Checking Electrical Components

• Facilitating New Vendors Visits

• Handling Emergency Situations (24/7)

• Researching Reliable Vendors

• Heavy Equipment Rental and Liability

• Finding and correcting liability issues

• Cleaning and Care of Parking Areas



• There is an ENORMOUS amount of profitable Management time taken up by non-essential tasks.

• Some of the major common ones are:

1. Cleaning2. Supplies3. Equipment4. Employee Management

• As a result, managers are saving precious time that can be re-directed to attend to the residents and finances of the property.



• If your Property Manager did have that TIME back, it’s been proven that they would be able to FOCUS on Profitable and Strategic Activities such as…

• Finding more efficient solutions for building upkeep

• Making sure code violations are in order

• Running More Effective Communication Campaigns to Owners/Tenants

• More ‘Face Time’ with Owners/Tenants

• Less of a Feeling of Overwhelmed, and Transitioning to a State of Focus & Clarity for Sales & Marketing


Staying Competitive

10 KEY Things to Look for When Searching for Professional Help…

1. Make sure your Property Managers can leverage off the many resources such as:Expertise Experience, Trained Staff, Equipment and Supplies.

2. Must be a cost effective solution to complacent, in-house staff.

3. The Association/Manager should be able to save time and money plusexpenses by not having to train employees. Make sure they have a team ofseasoned supervisors that will do it for you.

4. Must have effective communication with Managers regarding safety issues orpotential code violations in the community.

5. Must help you eliminate the daily headache of managing people.


Staying Competitive

10 KEY Things to Look for When Searching for Professional Help…

6. Must eliminate risk and liability resulting in greater strategic value for the property.

7. Must achieve economies of scale that are unavailable to individual propertieswith in-house staff.

8. Offers diversification in services that is difficult for in-house personnel to manageand maintain.

9. Must enable property managers to utilize the kind of expertise it couldn’t findinternally to perform special projects or tasks.

10.Must offer greater productivity with their employees, leading to better customerservice and increased profitability for the Association.


Staying Competitive

• An average, in-house cleaning costs 25% more than outsourcing.

• For example, in-house personnel still contract with outside vendors to handle carpet cleaning, trash removal, hauling services and more.

• With Jowers, this is and always will be the menu of services offered.

• In fact with in-house staff, there is an increased frequency of regular tasks performing duties such as cleaning and checking the same area several times - where the time spent on extra checking would be best spent doing something else in the building.Facility Mgt Study, April 2008


Staying Competitive

• Through our independent research, in-house staff costs on average $0.85 MORE per square foot than an outsourced contractor.

• Also, trends show that professional, legitimate, cleaning companies provide a lot of materials and supplies that are part of the services offered.

• In-house employees rely on mangers to do the ordering and purchasing which appears on budgets as an extra line item that adds to cost.


Staying Competitive

• After consulting with several clients on their needs, demands, and experiences, our analysis tells us that outsourcing with a professional cleaning company, like Jowers, employers are likely to have more supervision and support by upper management.

• In-house personnel, however, are very rarely supervised or followed up on by an overly consumed property manager.


Staying Competitive

With the new information presented…

…Professional Services exemplified…

and the factors of Time & Money Savings provided,

how can we help YOU like we’ve helped so many others?

Let’s see where you can experience similar BENEFITS as some of ourmost loyal clients…


Testimonials

“The people and staff are wonderful. They will comeout when you call. I recommend Jowers to anybusiness, because you will not be disappointed.“

~ Kumba Bass

“I’ve been using Jowers since 2000. The response from the residents and the board is outstanding. I would highly recommend their services to anyone who is in need of janitorial services.”

~ Richard Hooker


Testimonials

“The Jowers people are an important part of our team. They are detailed and courteous. I could always reach someone when I needed help, or needed additional services.

They are a part of what makes us successful.“

~ Gina Krauth & Robert Ransome

Now You Know…

For your Assessment or more information on customized Property

Management Solutions, please contact:

JOWERS & COMPANY, INC.www.JowersCo.com [email protected]

Direct: 404.633.8707

the5 mostchallengingprofit killers

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