RMK 353

PROPERTY MANAGEMENT

OPERATING A PROPERTY PREMISE

School of Housing, Building and Planning

Universiti Sains Malaysia
 Content

o Introduction
o Professionalism of property management
- Activities of property management
- Outcome of property management activities

o Performance of property manager

o Factors influencing performance

Introduction

Act
242
Introduction

o Only a registered valuer can call himself a – "Valuer",

"Land Economist", "Property Consultant" or "Property
Manager".

o He/she can carry out the practices of valuation, property

management or property consultancy.

o He/she is educated and trained in all areas of real estate

use and development, and is registered only after
passing the Test of Professional Competence set by the
Board of Valuers, Appraisers, Estate Agents and Property
Managers (BOVAEP)
Introduction

o Property owners of retail centres,

shopping complexes, etc who do not
manage their own buildings are
advised to engage only the services of
registered property managers for
property management services.

o Owners should approach the Board for

directions & guidelines in instances
where they find any difficulty in
appointing property managers.
Introduction

Registered with BOVAEP

Types of Firm Number
Estate Agent & Property Management (EPM) 12
Property Management (PM) 275
Valuer, Estate Agency and Property Management 218
(VEPM)
Valuer and Property Management (VPM) 9
Registered Members Number
Property Managers (PM) 2776
(As at January 2021)
Who is Property Manager?

o A person, a firm or company who, on behalf of

the owner of any land, building and any interest
therein, manages & controls such land, building
and interest to maintain or increase the
investment in, or physical worth of, such property.

o Shall comply with the provisions of Act 242, Act

318 and Act 757 as well as all relevant
regulations, standards, guidelines and circulars
issued by the Board and other relevant
authorities.
Property Management Responsibilities
Includes but not limited to :
1. Monitoring outgoings
for the property and
making payments out of
the income from the
property
4. Advising on the sale and
purchase decisions
2. Preparing budgets and 3. Enforcing the terms of
maintaining the financial leases and other
records for the property agreements pertaining to
the property
6. Advising on the
opportunities for the
5. Advising on insurance
realization of development
matters
or investment potential of
the property
7. Advising the necessity
for upgrading the property
or for the merging of
interests
Activity & Outcome

Activity/ Task Intermediate Outcome End Outcome

Regular Condition of the building
inspection, Residents feel
improve safe & happy
operations,
survey &
documentation
Property Management Activities
Handing/
Taking Over
Facilities Building
Management Management

Tenancy/
Maintenance
Lease
Management Scope of Management
Work

Health, Safety
& Emergency Financial
Management Management

Insurance Administrative
Management Management
Property Management Activities
• Essential step to ensure all relevant assets,
documents & records on the maintenance &
Handing/ management of the property are handed/
taken over properly
Taking Over • Prepare a clear checklist
• Carry out general inspection audit of the state
/ condition of the property

• Set up a systematic approach to management

& maintenance to ensure smooth operation
• Recommend suitable organizational structure
& adequate manpower to undertake day to
Building day activities
• Prepare, review & implement SOP
Management • Formulate management & maintenance
procedures
• Recommend an appropriate purchasing
procedure
Property Management Activities
• Ensure a proper accounting methods &
systems
• Issue invoice & receipts
• Collecting rental of income, service charges,
Financial sinking fund
Management • Prepare budgets, maintaining financial records
& submitting financial reports
• Monitor outgoings & making payments out of
the income or charges derived from the
property (eg : GST, quit rent)

• Plan & implement a comprehensive

maintenance management program
• Corrective maintenance – to ensure the
Maintenance effective rectification/replacement of the
defective facilities and equipment
Management • Planned maintenance – to prevent or minimize
defects or malfunctioning
• Service providers – to protects an asset’s value
Property Management Activities

What is the
frequency of the inspection & operations?
Property Management Activities

Example of frequency of lift & escalators inspection

Good Inspection of lifts & escalators at least once every two weeks
Above average Inspection of lifts & escalators at least once a month
Acceptable Inspection of lifts & escalators at least once every two months
Below average Inspection of lifts & escalators at least once every three months
Poor Inspection of lifts & escalators less than once every three months
Property Management Activities
• Compile and keep proper records, manuals,
drawings, service contracts, inventory listings
• Ensure the application and timely renewal of
Administrative all relevant licenses, permit, certificate
Management • Implement a system of handling & recording
enquiries, complaints and feedback, survey
• To assist JMB, MC to convene & facilitate
meetings (committee meetings, AGM)

• Assist in the procurement of the adequate

insurance cover
• Enable for a proper timely billing of the
Insurance insurance premium to all liable owners
• Report damages & losses and assist to make
Management appropriate claim to the insurers
• Ensure monies received from claim is fully
utilized for the purpose for which it was
claimed for
Property Management Activities

Health, Safety • Ensure compliance of the various regulations

and legislations that relate to the health &
& Emergency safety of the occupiers
Management • Prepare an Emergency Management Plan

• Implement relevant processes for the

collection of rents, car park charges or other
relevant charges & shall keep proper
Tenancy/ accounts of all monies collected
Lease • Ensure proper documentation & records are
kept on the property & inventory
Management • Ensure that the covenants implied are
observed by the tenant under the tenancy
agreement throughout tenancy period
Property Management Activities

• The integration of processes within an

organization to maintain and develop the
agreed services which support & improve the
effectiveness of its primary activities
• In the Malaysian context, facilities
Facilities management does not involve the collection
& administration of monies collected
Management • It encompasses mainly the management and
maintenance of the facilities & services
within the building
Outcome of Activities

Outcome of activities survey for health & hygienic

Good/ hygienic 100 Clean and tidy internal common areas, well covered rubbish
bins and none of the problems indicated below
Above average 75 Clean corridors and staircases with only a few stains on the
walls and floors and none of the problems indicated below
Acceptable 50 Some litter on the staircases or stains on the walls or floors
and none of the problems indicated below
Below average 25 Litter, odors or moss on the walls and floors; and none of the
problems indicated below
Unsanitary 0 Major rubbish accumulation or pest problems or stagnant
water or sticky or slippery floors
Outcome of Activities

Consult the
expertise eg :
Engineer &
architect

Determine
assembly area
Performance

Best practice in Property Management should result in :

1. Better building management

2. Better building building’s conditions
3. Better monthly rent due to its higher quality services
4. Prevent the increase of unauthorized building works or
appendages in common areas
5. Better social interaction among residents
6. Maintain the value of the property
7. Quality property management services affects
prospective buyers’ decisions
Factors Affecting Performance

Factors that affected performance of the

property management are :

1. Resources
2. Competencies of Property Manager
3. Commitment of management team
4. Workplace environment
5. Property management execution plan
6. Continuous improvement
Factors Influencing Performance

1. Resources

o technological resources that improves

communication and reporting
o financial resources

These two resources overlap with, and influence,

each other. Therefore, it is important for the
organization to invest its funds wisely
Factors Influencing Performance

2. Competencies of Property Manager

o The performance of property management is

influenced by, and dependent on, people and how
they are managed.
o Competencies increases competitive advantage,
innovation and effectiveness
o Enhancement of the knowledge through training will
result in successful property management and this
involves the integration of professional, managerial
and administrative skills
Factors Influencing Performance

3. Commitment of Management Team

o Well-disciplined staff and a high level of

professionalism
o Good attitudes
o Responsiveness of management team
Factors Influencing Performance

4. Workplace environment

o Supportive managers
o Good teamwork
o Empowerment
Factors Influencing Performance

5. Property management execution plan

o systematic and coordinated actions are developed,

through which an organization oversees its assets.
Factors Influencing Performance

6. Continuous Improvement

o A management philosophy
which is customer focused and
believes that there is always
room for improvement.

o processes need to be reviewed

on a regular basis if a company
is to have any chance of staying
ahead.
Factors Influencing Performance

What to Improve?

Customer processes
It is likely to generate cost and revenue and will be
critically important to the business

Management and support processes

Create and maintain the essential capabilities to run a
business successfully.
Conclusions

o To achieve the desired performance of property

management services is challenging.

o Performance of property management services is

influenced by the availability of adequate resources,
property manager and team competencies, a
supportive workplace environment and application of
good practices (continuous improvement)
 ASSIGNMENT
(Group of 5)
To prepare a
Property Management Action Plan
Your company has been selected by the Management Corporation (MC) to take
over a stratified housing property as the previous property management
company’s contract has come to an end. The stratified housing property is going
to have their next AGM in 3 months time and have been having issues such as :

i. High payment of water & electricity bills for the common area
ii. Poor cleaning maintenance
iii. High number of defaulters in maintenance billing
iv. Insufficient maintenance fund to cover monthly expenses even with
100% fund collected
v. Some residents with pets that caused nuisance to other residents
 Assignment : Property Management Action Plan
You are required to prepare a proposal plan to the MC of
the stratified housing property which include but not limited
to :

1. a detail taking over checklist of the property from the

previous property management
2. a detail proposal plan to the MC on the actions that
need to be taken to address all the issues listed
3. a suggestion on other matters that the property
management company find is suitable to enhance the
safety & quality of life for the residents

Submission Date : 2nd May 2023 (Tuesday)

THANK YOU