.jpg?1791551231.83259 "Savills")
The Savills Blog
Built properties face unique challenges at every stage of life, from construction to operations. Developers should be aware and conscious of this from the start, and they should create proper systems to ensure long-term value.
They can do this by hiring a property management consultant. Property management consultancy provides operational solutions that help developers optimise investment costs and save resources in the long term.
Property management consultancy varies depending on the type of property. Advice could relate to diverse topics from design and technical system reviews, budget planning, and calculating service fees to implementing standard operating procedures (SOPs).
Throughout the life of a project, developers face different challenges. Without comprehensive or expert support, they may encounter obstacles and struggle to make informed decisions promptly, which ultimately affects investment costs and operational efficiency.
If a contractor does not know how to align operational factors with design or technical systems, it may result in significant drawbacks for future management. Poor design may mean that a building does not meet the needs of residents and tenants. Suboptimal security and safety factors may affect customer experience, service quality, and operational costs. Improper technical systems can also make maintenance and repairs more difficult, leading to higher operational costs and inefficient energy usage.
Service fees must be included in a sales contract. However, many developers struggle to create service fee estimates given the complexity of building components. Inappropriate service fees could limit property sales if they are too high or create operational issues in the future if they are too low. The fees should also correspond to the nature of the property.
Within apartment buildings, owners have individual units and there is joint ownership of the shared assets within the complex such as community room, lobby and rooftop. If developers do not determine joint and individual ownership from the beginning, it could lead to future conflicts.
Defining joint and individual ownership requires legal expertise on the rights and responsibilities of shared property usage and management. By consulting with a real estate professional, developers ensure that all parties understand their responsibilities and rights according to the law.
Standardising operating procedures create a solid foundation for later activities. However, many developers do not employ specialised operations teams, which leaves significant service and management gaps. As a result, operations and managements are not standardised, management is ineffective, and internal rules and regulations are unclear, which negatively impacts long-term value.
A professional team with experience in setting up projects will ensure smooth operations. However, many developers do not have experience in recruiting and training specialised teams. Therefore, hiring a property management consultant will support staff recruitment and training, which will deliver consistency and qualified staff who will uphold the name of a project.
Operations present an array of issues for developers, given the specialised and technical nature of the processes. For example, often technical systems are not cared for according to instructions, facilities are not maintained and repaired regularly, leading to deterioration and decreased efficiency, and operational records are not fully updated and stored, which creates issues with reporting, efficiency, and auditing.
Developers must hold a successful meeting when establishing the owners’ committee. This body is crucial in upholding transparency and a connection between the developer and property owners. If the first owners’ committee meeting does not follow regulations, the owners will question its legitimacy.
Operations are complex and require transparent processes based on practical experience and the coordination of various specialised departments. Buildings require human resources, customer service, finance, and technical teams, without them, buildings may struggle with budgeting and management. Professional property management agents help developers:
When selecting a property consultant, developers should consider the following key criteria:
Experience and expertise covering all sectors are prerequisites to ensure that the consulting agency can provide effective and optimal solutions for operations, services, and costs. During their evaluation, developers should consider firms with a proven track record in consultancy and management, with practical experience in diverse properties, including office, commercial complexes and residential projects.
Developers should consider consultants with technical, design, legal, financial, and operational expertise. This will enable them to create comprehensive procedures and risk management strategies. A good consultant should have a good understanding of the market and speak to current trends like proptech or green solutions to ensure long-term value retention.
Professional consultants have a structured approach to understanding and delivering what clients want. A professional and transparent collaboration process typically involves
Savills is the market leader in property consultancy and property management services in Viet Nam. It has a team of leading professionals and over 2,000 staff across the country upholding quality and developing high-end services that meet international standards. The team delivers bespoke services at any stage of a property’s life, which attract potential customers, optimise investment costs, save resources, and enhance the long-term reputation and competitiveness. Explore our Management Consultancy services.