The Value of Great Management?
The bitterness of poor quality can last far longer than the sweetness coming from a low price: The quality of your property management company can dramatically impact operating costs, the quality of life for the residents and appreciation of property values.
Communities develop reputations. Some are well maintained and look great, while others are allowed to slip away as they age. Well maintained communities have residents that are happy and enjoy where they live and potential buyers are drawn to these same benefits. As a result, these communities often achieve greater appreciation in property values than others. Community aesthetics can usually be attributed how well a community has been properly managed.
So, what is the value of good management, and the resulting cost of poor management? Consider an average market value in a neighborhood of 100 homes to be $400,000. The collective value of the homes is $40 million. If as a result of being well managed and maintained the property values increased 5% instead of just 4% annually, the incremental appreciation for the neighborhood would be $400,000. Conversely, poor management and maintenance could have deprived the homeowners of this advantage.
Unfortunately a small savings in management fees or services would have resulted in limiting the potential return on the resident’s largest investment.
At Shaben & Associates, we keep this “big picture” in mind everyday in the communities we manage. We provide all of our services with individual attention and integrity, but also to enhance the value of the neighborhoods and homes that we oversee.