Where to start with this seemingly complicated task? It is actually not that complicated, you just need to choose a property manager that is doing a great job. After evaluating the recent news updates we can see a huge switch in Latvian property management industry. Several Latvian property management companies have been acquired by much larger real estate manager companies from Lithuania. Does it mean “The bigger the better”? Not always.
Option No.1: a smaller size property manager
We believe that a smaller property manager will take more careful and personal touch towards managing and administrating your apartment building. Managing an apartment building usually takes individualistic approach. At first glance, it may appear: “Well, we can just use our main business strategy and it is going to work”, but at the end, we see the results and we need to take a step back.
We can compare the management of multi-residential apartment building with the human body. If one part of the body is sick and you are not taking a specific care of it then after a while “the whole body will be sick”. You can be sure that a larger size property manager will use general principles and strategies. However, a smaller size property manager is the only option if you want that your building is managed with a genuine care.
The pros for choosing a smaller size property manager:
- efficient and effective decision-making of building manager and administration
- reachability of management by phone, email or management app
- better chance for creating customer relationships
- individualistic approach
- more suggestions for improving your home
- knowledge of the local market
- knowledge of the apartment building history.
The cons for choosing a smaller size property manager:
- less leverage in crisis situations (water leaks, heating communications etc.)
- can be more influenced by emotional and physical factors
- a smaller circle of contractors
- smaller chances for attracting financial loans in regards to a renovation
- will have more difficulties in legal disputes against public utility companies.
Option No.2 a larger size property manager
For larger volumes “the bigger the better” can actually work. Of course, it is not set in stone but larger property management companies have more leverage in case of crisis situations. They have a much greater impact on attracting financial loans then let’s say a property manager who is managing multi-residential apartment building portfolio of 5 buildings. They also can better handle pressure from governmental institutions and public utility suppliers. These companies have certain kind of reputation and management style. Your apartment building will experience the same treatment as other 100+ apartment buildings in the city.
The pros for choosing a bigger size property management companies:
- a certain level of standardization and quality
- leverage in crisis situations
- better chances for attracting financial loans in regards to the renovation
- a larger circle of contractors
- will have workforce: project managers, engineers, and technical specialists
- a feeling of a safety cushion.
The cons for choosing a larger size property manager would be:
- a much more complex way of decision-making
- the ability to quickly adjust to changing circumstances
- do not have an individualistic approach and management style
- corporate style of managing your building – which means lack of flexibility
- rotations of building managers, meaning a constant change of personnel.
After evaluating pros and cons you will be able to choose the property manager that is going to fit the needs of the residents of your apartment building. If you need any help in deciding or you wish to receive a consultation feel free to contact us at Urban Treetops!