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Property and Facility Management: what they are and why integrate them

Property and Facility Management: why should they be integrated? Buildings are one of a company’s fundamental assets. Valuing them is important from a functional, corporate image and, last but not least, economic point of view. 

From a financial point of view, fixed costs weigh heavily on budgets. Choosing the right service is therefore one of the first fundamental decisions that can determine the success of a business. 

However, careful management is not limited to the impact on the profit and loss account. Adherence to regulations is a must. Having said this, let us take a closer look at what Property and Facility Management are, and why it makes sense to integrate them. 

Property and Facility Management, let’s find out the differences 

The difference between Property and Facility Management depends on how we view the building. Everything that concerns the management of the building as a physical structure falls under the definition of Facility Management: for instance,cleaning and environmental hygiene, mail and reception management, archive management and logistics, and of course reception services.

An extensive but not exhaustive list also includes fire management, compliance with safety regulations, facility operation and maintenance services, waste management and green management. The Facility Manager is usually a professional with a specific technical background. 

Facility Management? No, Property Management 

Continuing the analysis of the differences between Property and Facility Management, Property Management, on the other hand, concerns everything related to the building as property. It is a sphere of action that insists on aspects of an economic-financial nature. For instance, Property Manager’s tasks include the identification of a suitable location for business activities, the selection of opportunities in the market, cost control, and due diligence. 

The Property Manager is in charge of maximising properties’ yield, preserving and increasing their value, if they are owned, or signing the most advantageous lease the market can offer. Nonetheless, this figure is also in charge of urgent interventions to manage unforeseen situations, not least those concerning relations with tenants and suppliers. 

In addition, the Property Manager is responsible for the financial management of the property, checks rent payments, sends reminders, decides whether and when to take legal action, acting based on their necessary knowledge of property law. These activities are pivotal especially when dealing with Real Estate.  

The Role of the Facility Manager

The Facility Manager is, therefore, the director of daily operations related to the physical structure of buildings, with a clear mission: ensuring a functional and safe work environment. His responsibilities range from maintenance to energy efficiency, encompassing safety and regulatory compliance. His work is crucial for:

• Coordinating cleaning, security, and maintenance services 
• Managing the life cycle of systems and equipment 
• Monitoring sustainability and energy performance 
• Ensuring that the facility meets the needs of users 

With a holistic vision, the Facility Manager acts to minimize risks and optimize operating costs. 

The Role of the Property Manager 

The Property Manager is tasked with increasing the value of the property and ensuring its profitability. In addition to handling administrative and contractual aspects, the Property Manager focuses on:

• Identifying and acquiring properties suitable for business needs 
• Negotiating and managing lease agreements 
• Controlling and optimizing cash flows resulting from Property Management 
• Managing relationships with tenants and suppliers
  

Essential for his role is a deep understanding of the real estate market and related laws, as well as financial expertise to ensure the maximization of real estate investments. 

Property and Facility Management: a fine line 

While specialisation is essential, there is an extremely fine line between property and Facility Management. Ordinary and extraordinary maintenance activities, for example, are simplified by the use of known and reliable suppliers, who preferably have a single point of contact. 

Neverthless, energy efficiency or that of telephony and communication networks are also borderline territory: if plant engineering is the responsibility of the Facility Manager, contract management falls to the Property Manager. How can these aspects be separated without complicating things? 

Outsourcing Facility and Property Management 

Given the complexity of the tasks and the possible spin-offs of Property and Facility Management, many companies choose to outsource and rely on external professionals. A partner that is able to handle both the engineering and the contractual, administrative and service side is optimal: same standards, same suppliers, lower costs due to economies of scale are just some of the reasons why an integrated provider simplifies management.

If your partner has internal divisions capable of taking care of every aspect, the control chain is also shortened, ensuring greater speed and efficiency.

Finally, the presence of a common IT system that is capable of dialogue represents a further advantage of adequate Property and Facility Management capable of enhancing the value of assets. As a result of the above, integrated Property and Facility Management represents an option favourably evaluated by many companies.