Property Management: Job Profile and Outlook

Property management involves maximizing net revenues or productivity of property based on managing rental flows, tenant retention, managing and contracting property operation. Property operation includes cleaning, maintenance and repairs, paying utilities, property insurance, property taxes and so on), reporting to owners and overseeing resident or on-site managers. Property managers are usually involved in leasing and facility management decisions. Those that manage several properties and are involved in acquisition, disposition, financing and portfolio management decisions are known as 'asset managers.' Most property managers start as on-site managers, working closely with tenants.

Consolidation is the general trend in the industry. Many property management firms are national or international in scope and are able to take over an entire institutional portfolio of various properties from different cities. Property managers' fees are often based on property rental flows, as well as the complexity of the property management work. For example, shopping center property managers may be involved in tenant merchant associations, joint promotions and advertising. It involves more time than a single tenant industrial property, where the primary management function is accounting-based control, reporting and monitoring.

Appraisal & Consulting: Job Profile and Outlook

Appraisers are paid to estimate the value of property after a systematic analysis of the prices of similar properties, or based on an analysis of discounted future returns. This valuation estimate requires market analysis and the subject property being appraised. Some appraisers work for a variety of clients on a fee basis; others are internal staff appraisers, producing value opinions for their employer. Most appraisers specialize in residential property, or specific types of commercial property.

The outlook for appraisers involved in specialized commercial appraisal and consulting, such as site analysis, buy versus lease decisions, property tax appeals, portfolio revaluation, and investment analysis, is quite promising. Many commercial and consulting oriented appraisers work within larger consulting firms including accounting and market research firms. Technology is having a major impact on the commercial and residential sectors of the real estate industry. The outlook for residential appraisal is being greatly influenced by the introduction of new technology. Opportunities abound for real estate professionals to revolutionize the residential sector, and residential appraisal firms that do not embrace new technology may become extinct.

There's space for realty education

 

Publication: The Times Of India Chennai;

Date: Jul 12, 2010;

Section: Education Times;

Page: 31

 

WITH THE REAL ESTATE MARKET BOOMING IN INDIA, STUDENTS NEED NOT LOOK AS FAR AS SINGAPORE AND AMERICA TO BECOME PROFESSIONAL REAL ESTATE AGENTS, AS SIMILAR COURSES ARE BEING OFFERED CLOSER HOME. SHIVANI BAIL AND ANJANA RAGHU RAM TAKE A LOOK…

    According to a study conducted by international auditing firm, PricewaterhouseCoopers, in association with the Urban Land Institute, a non-profit education and research institute, India leads the pack of top real estate investment markets in Asia for 2010. Despite all this attention, the Indian real estate industry still lacks a formal structure. This lack of structure is best illustrated by the fact that there are only a handful of real estate management courses in the country.     For starters, there is the MEASI Academy of Architecture that offers a postgraduate course in real estate development. The twoyear course is open to students with a background in either engineering or architecture. Director of the Academy, N Altaf Ahmed, says, "Real estate education is of immense significance from an economic perspective. Students are taught to make important decisions about real estate and how space is managed." He also highlighted the relevance of this course from an environmental perspective, as buildings affect and are affected by the environment.     Professor K R Thooyavan, Head of the Department of Real Estate Development at the Academy, stresses on the critical nature of this course. He points out that this course is for those who are seriously considering a career in the real estate sector. "This course has been approved by the Council of Architecture and is affiliated to Anna University. Students are also taught to accurately assess the economic viability and the space evaluation of every real estate project. In their second semester, they are also provided a detailed understanding of the legal underpinnings of real estate projects." Some of the components of the course are urban design, sewage management and development regulation." Three-D models of ideal sites are also used to help demonstrate the nature of real estate sites.     Also up for grabs are a variety of courses at the National Institute of Real Estate Management (NIREM). However, for those wishing to apply at NIREM, Director Sumit Jha says, "We do prefer people with a basic background in the real estate." The Institute offers courses in real estate management, finance and investment. The Director continues, "While other institutes in the country offer MBA courses which touch on real estate management, ours seeks to impart training exclusively in this field; it is a specialisation." NIREM also offers these courses by post; and both MEASI and NIREM offer campus placements.

    For those already in the profession, the National Association of Realtors - India, is looking to streamline the Indian real estate industry. The Chennai Real Estate Agents Association supports this and encourages its members to complete the course. "As part of the course, we invite experts to address brokers and agents. Our basic aim is to educate people already in the industry and to bring them on par with their international counterparts," says Abdur Ravoof, President, Chennai Real Estate Agents Association.     Will courses like these find any takers? "This is the first time I’m hearing about this qualification," says Abdul Halim, Human Resource Manager, ETA Star Property Developers, Chennai. "However, training new recruits is quite expensive and if we could hire someone who already had an extensive knowledge of the industry it would definitely benefit our organisation," he adds. The MEASI Academy had only six students last year. This year, they boast of 20. With companies looking for students with specialised knowledge of the various facets of property development and space management, real estate courses, it seems, are here to stay.

Realty companies tracking learning curve

Dibyajyoti Chatterjee & Gulveen Aulakh,ET Bureau
MUMBAI: Infrastructure and real estate companies such as GMR and Hindustan Construction Company are setting up campuses for universities and higher education institutes to ride growth in the $80-billion-plus industry.

The higher education sector in India alone is worth $10 billion and is growing at a compounded annual growth rate of 12%, according to a report by private equity firm Kaizen. With the real estate market receiving a drubbing during the slowdown, developers are evaluating asset classes such as education.

Such partnerships are mushrooming in almost all new townships or special economic zones under development, as companies see the presence of educational institutes in a young project will drive in more revenue in the form of fresh investment for homes and offices.

“Access to social infrastructure such as schools and colleges serve as attractive features that make it easier for a developer to sell projects,” says Chintan Patel, associate director, transaction advisory services, E&Y.

A tieup between an international institution and a developer, he adds, will not only socially benefit the region, but will also allow developers to create a system around the institute, providing retail, office and residential development.

The companies’ collaboration with educational institutes follows a buildand-rent business model. While the developer acquires the land and builds the infrastructure for the educational facility, the institute runs the school or college. It either pays rent or works on a revenue-share model.

Among the companies laying out plans in education, HCC has earmarked 500 acres for institutes at Lavasa, its hill city project close to Pune. “Till date, Lavasa has invested around Rs 100 crore in the education space,” says Anuradha Paraskar, senior vice-president, marketing, Lavasa Corporation.

The company has tied up with Symbiosis , Bangalore-based Christ University, Institute of International Business Relations of Germany, Switzerlandbased hospitality management institute Ecole hoteliere de Lausanne and Educomp, among others.

Global infrastructure player GMR too has roped in Canada-based Schulich School of Business to set up a campus in Shamsabad, Andhra Pradesh, says V Raghunathan, chief executive, GMR Varalakshmi Foundation. The company will create the physical infrastructure for the institute, and in return, earn management fee on the maintenance of residences and hostel facilities. Besides, it is planning an aviation academy on 25 acres in the region, fuelled by its international airport project in Hyderabad.

Diversified infrastructure player MARG is training its focus on research, and is in a tie-up with US-based Virginia Tech University for a campus in its SEZ, Marg Swarnabhoomi, near Chennai.

Virginia Tech will set up three innovation centres focussing on automotive, nanotechnology and life sciences. The company has formed a trust with Virginia Tech, in which both have an equal partnership.

With big automobile companies like Nissan, Renault, Hindustan Motors and BMW having manufacturing facilities in Chennai, MARG believes a research centre on the automotive industry could see more investment coming in from companies. “Research and education will draw more investment in the SEZ,” says GRK Reddy, MD, MARG.

School infrastructure is an equally sought-after territory, with the kindergarten-to-class XII and the pre-school segments growing at CAGRs of nearly 14% and 35%, respectively.

New Delhi-based real estate player CHD Developers has tied up with education company Educomp to set up the millennium school in its township, CHD City, in Karnal.

While the market rate for the project is Rs 10,000 per sq yard, CHD Developers is offering the land to Educomp at Rs 4,000 per sq yard, says Ravi Saund, head, business development. A trust formed by the two companies will manage the day-to-day operations of the school, with CHD taking half the share of revenues.

Another Gurgaon-based real estate developer, Alpha G:Corp, has tied up with Dubai-based Global Education Management Systems (GEMS) for a K-12 school in its township, Alpha International City, in Karnal. GEMS has acquired eight acres from Alpha G Corp to develop its international school and will invest Rs 60-70 crore in this project over the next five years.