the Month - April, 2022
ANALYSIS OF THE OWNER'S OBJECTIVES
Source: Property Management & Managing Risk
By: Robert C. Kyle & Floyd M. Baird, RPA/SMA
The plans may not include the
continued operation of the property in its present mode.
In the course of performing the market and property analysis,
the property manager may determine that an alternative use
would be more productive. Alternative uses, as well as
rehabilitation, alteration and modernization, should be
explored with the owner to define his or her objectives.
The management and improvement plan is shaped by the owner’s
attitude toward the investment. The owner may want to
authorize all suggested expenditures in order to increase the
property’s one-term income potential, or to decrease
taxes. On the other hand, the owner may prefer to make
no changes, treating the property as a short term investment
from which the maximum possible income should be derived
quickly. Other owners may permit expenditures to be
funded out of the property’s income but be unwilling to invest
The owner’s objectives will be the deciding factor in the
adoption of the management plan. If the manager cannot
successfully execute a particular plan as outlined by the
owner, the two should try to renegotiate it. One of the
most challenging aspects of property management is that there
is more than one answer to any given problem. When the
manager and the owner agree on a workable management plan for
the property, it must be put into contract form so that the
management of the property can proceed.
This web page was updated 3/30/2022.