How Property Management Maximizes Asset Value

Luxury apartment communities are becoming more management intensive, and as amenities and services become more common, the need for quality property managers is only increasing. Third-party property management firms can maximize asset value and play a significant role in increasing an investors ROI on an asset, according to Debbie D. Willis of Phoenix-based P.B. Bell. Luxury housing is on the rise in Phoenix, and it is creating more demand for quality third-party property management firms in the market.

“From common area amenities to individual unit maintenance needs, a quality property manager will keep a community in prime condition, maximizing its value,” Willis, president and designated broker at P.B. Bell, tells GlobeSt.com. “This, in turn, will bring higher rent potential for increased profit during ownership and a larger return once the investor is ready to sell.  Professional property management companies have vendor relationships that can provide discount or bulk pricing and can bring discounts from insurance companies. Professional property management companies utilize the latest software, which can provide key metrics to monitor maximum performance in both revenue and expenses.”

Third-party property management firms are so beneficial is because they attract quality and experienced professionals, according to Willis. In the luxury niche, an experienced team can be essential to managing day-to-day operations for tenants with high expectations. “The best of the best employees want to work for professional property management firms for the benefits, training and support,” she says. “Experienced, quality staff are essential to the success of an apartment community, especially in the luxury category. Residents looking to live in a luxury community not only expect the latest amenities but superior management and service.”

Today, luxury apartment amenities are varied. This can mean services, extra communal facilities and technology. “Luxury communities typically offer that latest and greatest when it comes to amenities and technology, providing convenience and ease of living for residents,” says Willis. “This can be challenging in that there’s more to manage and more services provided. By utilizing the latest industry software and working with premier vendors, property managers can provide efficiency in operations and increase resident satisfaction.”

The diversity in apartment communities today, which can range from high-rise mixed-use to boutique small communities, has also created diversity for property management companies. “No longer are they just managing garden style apartments,” says Willis. “We now have midrise and high-rise developments, which require a higher level of maintenance knowledge.  Amenities have evolved over the years and require additional oversight. “Smart Apartments” require managing a higher level of technology. All of these additional and expected amenities and services increase costs, so they must constantly monitor revenue growth and expense containment.”