6 Differences between Facility and Property Management
If you mix up facilities management and property management, a lot of people won’t even notice. Although the two terms are similar enough that they can be interchanged in a casual environment, there are significant differences between facility and property management that can lead to misunderstanding and, ultimately, practical problems if used incorrectly in a formal setting.
Despite the fact that they are plainly related terms, they are not interchangeable.
It is therefore important to note that when interacting with other colleagues, customers and professionals, facilities management professionals must be aware of these significant differences between the two terms.
Definition of Facility Management and Property Management
Understanding both terms usually start from defining them clearly.
According to a precise definition by one professional in the field, property management is simply building or property maintenance, whereas facility management is the delivery of basic needs or facilities to the occupant or tenant in order to provide him with the maximum living comforts as per predefined standards, though both entail the involvement of HR, financial, and material resource management.
Another definition is that Property management is mainly concerned with the property’s ownership, whereas facilities management is concerned with how the property’s services are delivered. Facilities management is more concerned with people and operations, whereas property is more concerned with buildings and ownership (primarily the selling and buying of a property including the renting and leasing of it).
While one has been known to involve lots of processes and people, the other is majorly focused on assets and maintenance of the assets/building.
Facilities management or Property management, which is more profitable?
In as much as both are profitable in their own right, one is often said to generate more profit than the other. Now let’s look at an example given by Bernard MacOscair, a lecturer at Portobello Institute.
“There are a property division and a facilities division,” Bernard explained, using the example of a huge real estate corporation with which he just had a recent engagement. “The facilities section provided a variety of services for a modest fee and employed a large number of workers. The real estate industry, on the other hand, completed one transaction the week prior and made seven times the profit in one transaction.
The key thing to note here is that property managers are responsible for both the financial and operational tasks, such as budget calculations and tenant rent collection, as well as site inspections, renovations, security, and the hiring of janitorial, general maintenance, and landscaping employees.
Their top responsibility is to keep the tenants satisfied as well as keep the money coming in.
Facility managers on the other hand are in charge of everything from overseeing assets and space use to managing and optimizing processes and systems to ensuring that a facility or campus functions as efficiently as possible. Understanding their company’s core business strategies is critical because everything the facility manager does should ultimately be geared toward lowering facility costs, increasing productivity, and positioning the company in the best light possible in order to help generate revenue elsewhere within the organization.
However, the fact that one section of the corporation earns more money does not imply that it is more significant than the others” Bernard said. The only reason the property division is worth so much is because of the facilities management section spends quite a large amount on its department’s upkeep.
The 6 Distinct Differences between a Facilities Manager and a Property Manager
- Sees to all building tasks
- Manages all tenant leases and ensures that the building owner’s responsibilities are met as stated in the lease.
- Takes care of tenant rent payments and ensures that they are received on schedule.
- Serves as the primary point of communication between the landlord and the tenants.
- Assists building owners in achieving their financial management objectives.
- In the event that tenants notice any problems with the building’s facilities, he communicates with the facility manager.
- He is responsible for the owner-occupied and rented spaces
- Maintains full business systems and ensures that they function properly.
- Manages the facility’s personnel and assigns duties to them.
- Maintains the building’s security and safety.
- Ensures that the building’s infrastructure and equipment are always operational and functioning properly.
- Troubleshoots equipment problems to see if they can be fixed in-house or if an expert is required.
Property management is generally centered on Real Estate skill sets, and profitability but the Facility market is expanding with each passing day to include new skill sets.
Both are growing industries and have their uses in core sectors of the economy but the facility management sector is much more in high demand due to the capital, technological and human expansion it’s currently experiencing.
Which one should I go for as a Career?
Thinking of studying one or both? It is important to address this question critically by first thinking of which problem you want solve as an individual. If you are more interested in profit, property management will do just fine but if you are looking at diverse and more encompassing career path, it is best to go for facility management.
Which one do I need for my Business?
Again it all boils down to the issues facing your business. If you own multiple properties and you are not always there to manage them, then you may need a property manager. Problems relating to building maintenance will facilitate the need for a property manager.
For issues in businesses that goes beyond the building to caring for the occupants requires a facilities manager. For example, a pipe in the restroom could burst, flooding the entire floor. While the property manager arranges for a plumber to repair the problem, the facilities manager relocates everyone to another location where they may resume work.
Facility Managers sees to not just the building itself but the smooth running of integrated services within the building/organization.
In a nutshell, hiring both can be beneficial for your business. Also taking both as a career path can be rewarding for you.
You can start your career as a property manager and work your way to becoming a skilled facility manager. At Max-Migold, we have created certified and skilled courses that can make you become an expert in each of these professions.
Browse through our list of courses and begin the one that best suit your level of learning and preferences. Don’t know where to start? Contact us at once and we will respond as fast as we can.