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[P767]Property Management And Maintenance
by Gary Crow, Gar
All management is based on guiding principles; and the effectiveness of management derives from those principles. This is true whether the principles are appropriate or inappropriate, reasonable or unreasonable, consistent or inconsistent. Similarly, the derivative nature of management holds whether the guiding principles are vague or well-defined, followed faithfully or haphazardly, applied day-to-day by managers who are highly skilled or fundamentally incompetent. Effective management, then, is a product of:

? Guiding principles that are appropriate, reasonable, and consistent;

? Managers who clearly understand the guiding principles, faithfully adhere to them, and who are fundamentally competent.

It follows from this that the effectiveness of an organization's management is a product of the Principle/People equation:

? Principles + People = Outcomes.

The guiding principles for an organization are a composite of underlying assumptions and values that define and direct management practice. 'Assumptions' in this context are beliefs that are held as 'true' without demonstrable proof. 'Values' are those conditions that are held to be inherently and intrinsically 'right.' From this perspective, then, guiding principles are true because they are true and right because they are right.

With the non-empirical, self-justifying nature of guiding principles in mind, an organization has its unique 'culture.' Here, 'culture' refers to the collective beliefs, values, and norms of the organization, where 'norms' are the standards for behavior and interaction within the organization. These standards are, of course, based on the organization's beliefs and values related to how the organization's people 'should' behave and interact both with each other and with people outside the organization. 'Norms' thus define correct and proper behavior.

When norms are understood as following from beliefs and values, the organization's culture can be summarized as its collective sense of;

? What is true,

? What is right,

? What is proper.

At an abstract level, an organization's guiding principles exist within its collective memory and current consciousness; but at a practical, functional level, those guiding principles reside within its people. Each person is a carrier and a conveyer of the guiding principles that direct the organization's day-to-day activities and future 'outcomes.' Those 'outcomes' may be tangible or intangible but are, nonetheless, a product of the collective efforts of people who carry and convey the organization's guiding principles.

PRIDE

(P) Professionalism: An organization's achieving its desired outcomes is dependent on its people; so what people bring to the endeavor makes a critical difference. They must be competent to fill their organizational roles. At a minimum, they must have knowledge, skills, and judgment consistent with their positions and responsibilities. In turn, they must apply their knowledge, skills, and judgment in the interest of achieving the organization's desired outcomes. To the extent that the organization's people do not have the requisite knowledge, skills, and judgment for their positions, the organization, through its management, must assure that the needed training and skill development are provided for its people; and as people leave the organization, new people must be recruited who either have or can develop the requisite knowledge, skills, and judgment. Whatever the mechanism, the organization cannot achieve its desired outcomes unless and until the requisite knowledge, skills, and judgment are in place.

(R) Responsibility: Assuming that the requisite knowledge, skills, and judgment are in place, the organization's desired outcomes will only be achieved to the extent that its people do the right things right, the first time, on time, every time. Simply having competent people in place is not sufficient in and of itself. Here, doing the 'right' things is not based on training and experience. Rather it is based on understanding and adhering to the organization's guiding principles. It is doing that which is right from a value perspective. Doing the right things right, the first time, on time, every time means that the organization's people are consistently and conscientiously adhering to its guiding principles.

(I) Initiative: Competence plus adherence to guiding principles leads to initiative: people seeing what needs done and doing it because it needs done. Since the organization's people are competent, they are able to see what needs done and have the requisite knowledge, skills, and judgment to do it. Since they adhere to the organization's guiding principles and are committed to its desired outcomes, they do that which needs done. Conversely, if the organization's people do not manifest initiative, there are organizational deficits requiring management intervention. That intervention must be directed to some mix of increasing the competence of the organization's people and increasing adherence to the organization's guiding principles. Increasing adherence to guiding principles, of course, must focus on increasing understanding and acceptance of that which is true, right, and proper from the organization's perspective.

(D) Directedness: The organization's people can be competent, do the right things, and manifest a high level of initiative and still not achieve the organization's desired outcomes unless there is a high level of Directedness: focus on attaining optimal outcomes for each situation or circumstance. These optimal outcomes are intermediate steps toward the organization's desired outcomes; and an absence of focus on them decreases the likelihood of achieving the organization's desired outcomes. Conversely, intense focus on intermediate outcomes increases the likelihood of achieving the organization's desired outcomes.

(E) Effectiveness: Were the internal and external organizational environments static, professionalism, responsibility, initiative, and Directedness would be sufficient for achieving the organization's desired outcomes; and once people were successful with respect to the intermediate outcomes, they would only need to 'keep up the good work.' Management, then, would be little more than a 'maintenance of effort' process. However, both the internal and external environments change over time; and management is responsible for assuring a continuing fit between the organization and the external environment. Further, the organization's desired outcomes change over time. This change may involve completely different outcomes or changed standards for old outcomes. Whatever the change, yesterday's desired outcomes will not be the same as tomorrow's. It is, then, management's responsibility to keep the organization's people aligned with its changing outcomes. This is accomplished through doing what needs done, evaluating what was done, and doing it better the next time, while concurrently assuring continuous fit with changing internal and external environments and desired organizational outcomes.

The 'people' side of the principle/people equation requires continuous management of Professionalism, Responsibility, Initiative, Directedness, and Effectiveness in relation to changing, desired outcomes in concert with the organization's guiding principles. This leads to the conclusion that PRIDE is and must be the underlying guiding principle for effective management and for effective managers.

With PRIDE as their guiding principle, effective managers then strive to:

? Understand and further the mission of the organization.

? Define and maintain a rational, flexible Organizational Structure within which employees can function with a minimum of administrative and bureaucratic control and interference.

? Provide clear, consistent Direction for employees, assuring each employee knows and understands what is expected of him and what behavior and action are acceptable and unacceptable.

? Maximize Personal Control for each employee over his work related environment and activities.

The critical strategies for achieving these outcomes are:

Cooperation: Emphasizing a helpful, supportive approach to relationships and activities.

Loyalty: Emphasizing working with employees by accommodating to special needs and interests and facilitating resolution of problems.

Caring: Emphasizing concern for and interest in the activities, successes, and problems of employees.

Sharing: Emphasizing talking with employees, reciprocal assistance, and mutual problem solving.

Respect: Emphasizing acceptance of employees' beliefs and values, receptivity to employees' thoughts and ideas, and sensitivity to employees' feelings and interests.

Trust: Emphasizing giving employees the benefit of the doubt without blaming, accusing, or threatening.

Integrity: Emphasizing keeping commitments to and agreements made with employees.

Conflict Resolution: Emphasizing identifying, understanding, and working through conflicts and tensions among and between employees.

There you go and now you know.

Property Management allows a real estate broker to:

1.  Even out the rough spots The real estate broker profession is a profession in which its participants will go six months without making a dime and then the stars align and $40,000 falls into the brokers lap.   The exhilaration of a large bank balance is soon forgotten as office overhead and overdue personal bills are paid and the roller coaster repeats itself.  In the feast-or-famine world of real estate sales, the management fees collected from real estate investment properties provide a stabilizer effect to help even out the peaks and valleys of 100% commission income.  Through the use of a property management business, the 10% management fees from collected rents can easily provide a broker with an ongoing income stream with which to pay office overhead. This stream of income can turn into a full-fledged river after several large properties have been placed under management; enough money to pay a salary in order to even out the ebbs and flows of real estate markets. 

2.  Crack the often elusive trusted advisor circle Property management not only provides extra income through management fees, but also provides brokers opportunity through getting on the inside of a tough, but lucrative market - a real estate investors inner circle of trusted advisors. Many agents do not realize that the best deals never make it to the MLS. When it comes time for an investor to sell a real estate investment, they will work with an agent they feel is the most competent agent for marketing the investment and representing the investor. This may be a broker who manages the property or it may be a broker they have had success with in the past, but the property manager certainly has had plenty of opportunity to demonstrate levels of knowledge, skills, and competence.   

3.  Provide an endless supply of would-be homeowners Eventually most renters will leave the rental market and enter into the world of owner-occupancy. Who do you think a renter turned would-be owner will look to when they are ready to purchase? An agent whose face and phone number have faded off the bench at the corner bus stop or their broker/property manager who was willing to work with them on their late rent while their baby was in the hospital?   Starting a property management business is not only a great way to increase income to offset sagging sales, but also help build a loyal clientele of investors and homeowners for the future.  

Go to  for more information on starting a property management business today!

Article Source : Local Real Estate Agent

About Author
Both Gary Crow & Ryan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Gary Crow has sinced written about articles on various topics from Skin Care, Social Issues and Software. Gary A. Crow, Ph.D. has over forty years experience in management and training. He is the Executive Editor of Leadership Village Press and Leadership Village, a network of sites focusing on leadership, personal success, family and parenting matters, and r. Gary Crow's top article generates over 74000 views. to your Favourites.

Ryan has sinced written about articles on various topics from Real Estate, Information Technology and Recipes. Ryan Windley coauthored The Property Management Start-Up Guide "How to Start a Property Management Business and Still Keep Your Life" in order to introduce entrepreneurs to property management as a viable business.If you would like to know more about star. Ryan's top article generates over 2900 views. to your Favourites.
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