Page 12
— Property Management Quarterly — April 2016
W
ith a bit of comparative
license to Gordon Gecko’s
famous quote from the
movie “Wall Street,” during
which he proposed that
his audience consider an alterna-
tive, positive outlook on greed, I
would propose that the typically
frightening prospect of change in
the property management world
can be, and usually is, a good thing.
The reality of the investment real
estate world we live in today is
that it is dominated by owners and
investors who purchase and own
most commercial properties for
three to five years. Then they sell
to reap the financial benefits from
their investment in the asset and
the appreciated growth in value for
their own investors. Our challenge
as property managers is to navigate
and embrace these never-ending,
inevitable changes in ownership or
management and create the great-
est benefit for our employees, cli-
ents and ourselves.
Throughout my more than 30
years of property management in
Colorado, I have experienced sev-
eral significant changes for myself
and my employees, and without
exception those changes ultimately
resulted in better opportunities
for every individual who stayed
focused, didn’t get sidetracked by
the “what if’s,” and continued to
perform their jobs at their same
high level through the turmoil.
So, what can you do when you
get a call from your boss or asset
manager telling you that your prop-
erty or portfolio is
being sold? And
before you hang
up and process
the information,
you hear from the
sale listing broker’s
assistant wanting
to send you their
list of all the infor-
mation they need
by tomorrow. I’ve
outlined four key
areas to focus on
immediately after
receiving that phone call.
1. Kick it into a higher gear.
A prop-
erty manager’s responsibility is to
serve the needs of his clients, and
the client is looking to you to help
drive this effort to a successful
conclusion. No one should globally
know more about the asset(s) than
the property manager. This sale pro-
cess is the manager’s opportunity
to sell themselves and their team
as knowledgeable, valuable to the
property’s successful performance,
and as professionals in representing
his client and company.
2. Pull your team together.
As the
leader of your management and engi-
neering team, they are all looking to
you for direction, support and a posi-
tive attitude. Lead by example and
remember that you’re only as good as
the people on your team. Hold a team
meeting as soon as possible to hon-
estly provide whatever information
you can regarding the sale on timing,
process and expectations over the
next few months.
You don’t want your people to
learn first of a potential sale from
someone outside your team. In
many cases, the individuals who
are most concerned are the low-
est compensated positions who are
the least likely to be the impacted
by a sale, so don’t forget to include
everyone. Ask your management
firm or client if stay bonuses can be
considered for key members of your
team. Fear of change can cause
your people to consider moving on
when you need them most, and
they should be rewarded for all the
extra efforts required in a sale.
3. Focus on the presentation of your
property and people.
Prepare your
property and employees for perhaps
dozens of guided tours. Determine
and agree with your owner and
listing broker on the best route
through the facility and the man-
agement representatives who will
participate.
Give strict guidance on what
information or discussions are
permitted by your team members.
Focus on the cleanliness and order-
ly appearance of everything seen on
the tour route including the proper-
ty and your team. Practice the tour
with your team before the first tour,
and try to walk it before subsequent
tours. Surprises are never good.
4. Double check every piece of
information.
The laundry list of due
diligence information that will
be requested to be produced is
vast and leaves almost no subject
untouched. Work with your team to
divide and conquer the compilation
of all the information, but clearly
identify to the team that no one
releases any information unless it
has been approved for release.
Be certain your client agrees with
the release of information and
exactly what documents are being
provided. Only provide documents
or information through the listing
broker and never deliver informa-
tion directly to a prospective buyer.
Check the accuracy of the informa-
tion provided, ensure it is up to
date, and correct any discrepancies
you can before it’s distributed.
Nothing says subpar performance
to your client, buyer or successor
management company than a list
of expired month-to-month agree-
ments, old certificates of insurance
or poorly organized files. When
you are ready to transfer or upload
information, many of the top-listing
firms will provide assistance on site
to scan and upload approved infor-
mation.
Many times when we are asked
throughout our careers what we
love about the property manage-
ment profession, the answer often
repeated is that we love the diver-
sity of roles and that the job is
different every single day. The day
you hear your property or com-
pany is being sold is definitely one
of those different days. Don’t fight
the change, but rather embrace it.
Redouble your efforts to focus on
your job and support the people on
your team. Change is usually for the
good, but only as good as you make
it.
s
Tom Bahn
Senior vice
president, Stream,
Denver
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