The Institute of Real Estate Management (IREM) has published a report on the key challenges facing today's real estate management professionals as well as some practical suggestions and best practices for addressing them. Titled "Transforming Real Estate Management: Four Strategic Issues," the report is the result of a year-long effort during which IREM called upon its members to identify, analyze, and prioritize the major issues changing the dynamics of the real estate management profession. As prioritized by IREM, technology is the No. 1 issue, followed by workforce development, business competition, and risk management.
SPOTLIGHT ON TECHNOLOGY
The report observes that technology has penetrated every aspect of the property management business, a phenomenon driven largely by the need to increase productivity and strengthen customer relationships. It notes that whenever there is a question about how to improve service or reduce costs, technology increasingly seems to be part of the answer.
SPOTLIGHT ON WORKFORCE DEVELOPMENT
The report notes that a serious shortage of talent looms on the horizon, challenging all industries, including property management. As a result, real estate managers are being forced as never before to focus on identifying, attracting, developing, rewarding, and retaining qualified staff - a task made even more challenging in the face of declining profit margins, higher labor costs and competing career options.
SPOTLIGHT ON BUSINESS COMPETITION
The report observes that the property management business is highly competitive and becoming increasingly so, as evidenced by shrinking profit margins, mounting demands from property owners and clients, and rising expectations among tenants and residents. It notes that many owners now regard property management as a commodity service, creating constant pressure to lower prices. In response, some companies choose to compete more effectively by minimizing costs while others choose to differentiate their services, hoping to command a premium price.
SPOTLIGHT ON RISK MANAGEMENT
Taking and managing risks play key roles in how organizations create profits and value, the report observes. This is especially true of the real estate management business, having the usual risks associated with running any business, as well as the unique risks associated with the properties being managed and those who live, work, show, and do business there.
FREE COPY OF REPORT AVAILABLE
A copy of "Transforming Real Estate Management: Four Strategic Issues" is available at no charge, in PDF format, at (http://www.irem.org/pdfs/iremfirst/irem4issues.pdf).