Performance management is an essential part of any property management system. It involves setting goals, monitoring progress, evaluating performance, and providing feedback and support to ensure the property is managed efficiently and effectively.
The main objectives of performance management in property management are to improve tenant and client satisfaction, increase property value, optimize financial performance, and ensure compliance with regulations in the highest standards possible.
Here are some key steps involved in achieving and maintaining an effective performance management framework in a typical property management system:
Establish Performance Goals: The first step is to establish clear and measurable performance goals for property managers, staff, and vendors. This includes setting targets for tenant retention, rent collection, maintenance response times, and financial performance. It is important that these pre-agreed goals are properly defined in the Service Level Agreement (SLA) to include the process for monitoring performance using SMART Key Performance Indicators (KPIs) and their associated costs implications/rewards.
Monitor Performance: Regular monitoring of performance metrics is essential to ensure that property management activities are aligned with the established goals. Performance metrics can include occupancy rates, maintenance costs, revenue growth, and tenant satisfaction surveys, response time, breakdown or downtime, etc.
Provide Feedback: Property managers should receive regular feedback on their performance, including areas where they are excelling and areas where they need improvement. Feedback can be provided through regular performance reviews or through ongoing coaching and mentoring. On the other hand, the service users/clients play a critical role in providing useful feedback. Facility managers are encouraged to demonstrate high level of tolerance especially if and when receiving unpleasant reviews and should endeavor to respond to such with verifiable facts where applicable. Like some will say, ‘Facility management if a thank-less job’, however, this perspective may be changed if facility managers take the lead in setting up a feedback mechanism and not leave it in hands of service users who may sometimes be reactive. For better results, always ask for feedback and state the area you specifically want it and how you want it and your overall objectives. Be ready to take the punches, they often will come.
Implement Performance Improvement Plans: When performance falls short of established goals, property managers should be provided with performance improvement plans to address the areas of weakness. These plans should outline specific actions to be taken to improve performance, as well as timelines for completion. Where these actions require funding, facility managers are expected to seek approval from necessary quarters with convincing facts and data and other feasible alternative options. More often than not, attaining a high performing facility management system is achievable by removing wastages and inefficiencies within the system. This should be done continuously.
Recognize Successes: Recognizing successes and achievements can help motivate property managers and staff to continue to improve their performance. This can include bonuses, incentives, and other forms of recognition. Sometimes what does the magic is a simple yet golden expression “Kudos or Thank you”.
Overall, performance management is critical for ensuring that property management activities are effective, efficient, and aligned with organizational goals. By setting clear goals, monitoring performance, providing feedback, and implementing improvement plans, property managers can optimize their performance and enhance the value of the properties they manage.