Property Management's New Reality
It’s certainly not your father’s property management business anymore. Lincoln Property Co VP Shane Froman should know—he's learned many lessons from his father, who's also in the biz, and is now VP of Lincoln’s Atlanta office, responsible for property management and engineering oversight of its 9M SF. Today he shares with us some of the big changes he's seeing in the industry.
As markets like Atlanta start coming out of the recession, it means properties will begin to change hands again, says Shane (above, with wife Susan and Great Danes Mavrick and Sydney—neither of whom had anything to bark about in regards to property management). That’s an opportunity for teams to showcase their management skills and earn the opportunity to stay on board with the new owner. Shane, who was just elected to the Board of Directors for BOMA’s Southern region, says in order to separate yourself from the pack, you have to: make sure your property is constantly and properly maintained; promote better energy efficiency; and look at new technology to help you manage and get to the next level. “You can’t operate the same way you did 10 years ago,” he says. Three things you must know:
1) Property managers are now also accountants.
While the money side of the biz had previously been left to property accountants, property managers are continuously expected to know more in-depth financials of the building and the owner’s plans, Shane says, including the exit strategy, which can help determine the ways in which you create value. It also means becoming more proficient in accounting software programs like Yardi and JD Edwards. (Are those anything like Angry Birds? Because if so, we've got this.) The days of on-site or project accountants are gone for the most part, he says.
2) You can’t fall behind on technology.
When Shane’s father (who works in Charlotte) started in the business in the early ‘90s, a notepad was sufficient. But now if you don’t have an iPad, take part in social media, or know the latest property management software, you’re missing out on the chance to help your property outperform. “In the future, property managers might be conducting property inspections with Google Glass,” he says. You have to figure out what options are out there and what will work best for your assets and style of management. The tough part is trying to make the technology work together, which can be a huge time investment, he says.
3) Embrace the Millennial change.
Property management leadership has to remember that Millennials have different work styles, including the times of day they work (11am to 7pm, for instance, versus the usual 9-to-5 grind). That will have an impact on operations, he says. Buildings are staying open later and tenants are trending toward collaborative space, so now property managers have to work together and figure out how to keep costs down with a diverse mix of clients in your building. Of course, Shane's ready for any new situation that comes his way: He credits his past training as a firefighter and arson investigator for allowing him to think outside of the box and stay away from tunnel vision while he handles different scenarios, even in property management.
