Managing the Property Owner/Client Relationship

As a property manager, you may sometimes feel that you are walking a tightrope between the interests of your property owner or client—to whom your property is a source of income and profits—and the tenants or homeowners, who regard a well-managed property as a reflection of their home life or as a way to boost resale values. Here are a few tactical steps that can help make that relationship more harmonious.

First, acknowledge that it’s difficult. “The politically correct thing to say, of course, is that we can balance all of these things, but we can’t,” says John Rosenberg, an adjunct instructor of real estate for the University of Cincinnati. “What is clearly in the interest of the owner and investors is money, and that can cause conflict.”

When dealing with owners:

Invest in the best software available. David Kramer, vice president of Grady Pridgen, Inc., in St. Petersburg, Fla., an industrial property management company, says it only makes sense to have the “latest and greatest” software to stay organized and effectively manage all aspects of the property.

“It’s so much easier to track expenses and keep on top of things,” he says.

Have a clear understanding of the owners’ expectations. How hands-on do they want to be? “Unless you have truly understanding owners, who understand day-to-day operations, the money you spend will have to be spent very wisely,” Rosenberg says. “Unfortunately, if you haven’t figured correctly, and you need to ask for more money, the owner may see you as a bad property manager.”

Get everything in writing. This includes what financial returns are expected, what onsite improvements and maintenance are required, and what daily upkeep should involve. “Ultimately, it is the owner who employs a manager, not the tenant,” Rosenberg says. “As long as the manager and owner are on solid ground and expectations are well defined, a lot of conflicts will be avoided.”

Good communication is crucial. Property managers should meet with the owners face-to-face at least once a month. “More and more, we’re seeing brokerage firms that are giving away their management services as a loss leader in order to create a relationship,” Rosenberg says. “This is creating challenges for not only property managers, but also owners. The two need to be talking on an ongoing basis.”

When dealing with tenants and staff:

Carry the PR down the chain. “Many times the tenants’ point of view is that the manager is the owner,” Rosenberg says. So as a property manager, you should employ ”professionalism all the time, good communication, great customer service—some may say it’s just lip service, but it’s what makes the difference,” Rosenberg says.

Communicate with tenants constantly. Nothing riles tenants more than not having their e-mail or phone call returned. “Give an immediate response, even if you don’t know the answer to their problem,” says Kramer. “Ensure they understand their lease—you can’t change the rules midstream, and if they understand it from the beginning, it helps eliminate a lot of problems. Typically, tenants don’t really understand their lease until they’re upset about something.”

On the flip side, achieving this level of communication may also entail “going to bat” for your tenants. “If it’s a fairness issue, you may need to point that out to the owner,” Kramer says. “Don’t just leave your tenants with, ‘It’s your problem.’ Always try to point them toward a solution. Even though you’re working for the landlord, you have to try to keep your tenants happy.”

Help your tenants network. This works especially well in commercial applications, Kramer says. “When we put a tenant in a space, we can see connections, and we put them together,” he says. “You want your businesses to survive, and we can help provide business contacts for them.”