Understanding the roles of both facility and property managers is paramount when it comes to managing office spaces. Though these two positions are interconnected, their responsibilities are distinct — particularly when maximizing the efficiency of corporate offices. Before business leaders can optimize space usage, streamline operations, and make informed decisions about their real estate portfolios, there should be a firm understanding of the difference between a property manager and a facility manager.
Below we explore each position’s intricacies, explain where their responsibilities overlap, and help you determine which role makes the most sense for your business.
Responsibilities of property managers
Property managers handle the broader responsibilities of the physical building itself. Their primary concern is the ownership, leasing, and financial aspects of the property. While they won’t be directly involved in the day-to-day, boots-on-the-ground decision-making of the company, they should still be considered a critical stakeholder in the business. Key responsibilities include:
- Rent collection and lease administration. Property managers are responsible for collecting tenant rent and ensuring lease agreements are appropriately executed and enforced.
- Property maintenance and repairs. Like facility managers, property managers oversee maintenance – but their focus is on the building’s structural integrity and long-term value. The property manager may oversee full-scale renovations, sustainability initiatives, waste management, and general upkeep of the building.
- Tenant relations and conflict resolution. Property managers are the main point of contact between the tenants and the property owner. They handle tenant complaints, resolve disputes, and ensure lease terms are met.
Desired skill sets of a property manager
Property managers should have a firm understanding of financial management, problem-solving, and negotiating tactics. Let’s talk about why each of these three skills is important:
- Financial management. Property managers want to generate revenue like the rest of us. Understanding budgeting, rent, and financial reporting ensures the property remains profitable for the owner.
- Negotiation tactics. Property managers often need to negotiate lease terms and contracts with tenants. Strong negotiation skills allow you to secure favorable deals that benefit both the tenant and the property owner.
- Problem-solving. When issues arise with real estate assets or tenants, property managers need to remain steadfast and quickly begin thinking about potential solutions. Building a positive relationship with tenants and facility managers gives you more leeway when addressing building management.
Responsibilities of facility managers
Facility managers (FMs) are responsible for a facility’s day-to-day operations, ensuring it remains efficient and promotes a healthy working environment. Their primary focus is creating a productive, safe, and well-maintained building, supporting employees’ needs while maximizing office space usage. Here are a few key roles a facilities manager plays in an organization:
- Facility maintenance and upkeep. Facility managers are responsible for ensuring the office’s physical infrastructure functions smoothly. This could include HVAC installations, cost-efficient lighting, and engaging all necessary service providers. Building owners may also assist in these efforts.
- Asset management. FMs are also in charge of managing office equipment, furniture, and technology. This helps businesses extend the lifespan of their assets and ensures all equipment is functioning properly.
- Space planning and utilization. Optimizing space usage is a major responsibility of a facility manager. FMs should manage desk reservations and room bookings and cultivate a flexible work environment that accommodates hybrid work models.
- Health and safety compliance. FMs are responsible for maintaining health and safety in the workplace. This could include enforcing fire safety measures, installing sanitation stations, or offering mental health resources.
Desired skill sets of a facility manager
The skills required for a facility manager are slightly different from those needed for a property manager. Instead of heavily emphasizing financial literacy and deal-brokering, facilities management professionals must be more deeply tuned into their employees’ wants and needs. Here are a few critical skills:
- Communication. Facility managers must constantly communicate with all relevant stakeholders, including employees, contractors, upper management, and the property owner. This ensures everyone is aligned when changes happen within the company.
- Adaptability. Office environments can change quickly, especially in hybrid work setups. Facility managers must be flexible and ready to adjust to shifting needs, whether managing a sudden office closure or optimizing space for a growing team. Being able to shift your workspace suddenly helps maintain operational efficiency.
- Empathy. A great facility manager understands the needs and concerns of employees. By putting themselves in the workforce’s shoes, they can create office environments that enhance comfort, productivity, and overall well-being.
Where do property management and facility management overlap?
Despite the distinct differences between the two roles, there are still areas where the responsibilities overlap, requiring collaboration from both parties. Ideally, the facility manager and property manager remain in lock-step from day one to limit the discrepancies that pop up during the duration of the lease agreement. Here are some areas where the roles intersect:
- Collaboration. Facility managers should work directly with property managers to ensure the smooth operation of the office. Open communication between the two parties is crucial, even if there are no urgent issues. When emergency situations do arise, like a pipe leak, you’ll already have that relationship built.
- Emergency preparedness. Both roles need to be prepared for issues to pop up out of nowhere. Both parties must prepare for major emergencies such as natural disasters or security threats. More minor issues, like needing to call a plumber, should be the facility manager’s job.
- Budget adherence. Both FMs and PMs have financial responsibilities, though slightly different focus areas. Facility managers oversee the operating costs within the office, while property managers manage expenses related to the building itself. Together, they ensure that all budgets are adhered to and that cost-saving measures are implemented where possible.
- Data-driven insights. Both roles can leverage workplace management tools to collect real-time data on office usage, space optimization, and building performance. This data helps inform decisions about space utilization and investment strategies.
Which role should you hire for?
When viewing these roles in the context of your business and deciding which one to hire, it’s essential to consider your needs. Adding both roles might be necessary for companies that own or lease large office spaces, but if your focus is on optimizing daily operations and ensuring that your office space meets the needs of your employees, a facility manager is likely the better fit.
Facility managers play a direct role in shaping your office’s day-to-day environment. They make decisions that impact employee productivity, space usage, and the overall functionality of the office. Property managers, on the other hand, are more concerned with the financial and administrative aspects of the building itself.
To make confident, data-backed decisions about workspaces, FMs can leverage a workplace management platform like OfficeSpace to gather data on desk reservations, room bookings, and office usage. Integrating presence data from badges, for example, allows FMs to understand occupancy in real-time, without the need for manual attendance tracking.
Tools like OfficeSpace remove the guesswork from building an office environment and show you the information that truly matters.
Request an OfficeSpace demo to learn more.
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