You may have heard the terms facility management and property management quite frequently, and wondered whether they are used interchangeably. Truth is, both are responsible for constantly improving and maintaining property standards. While there are a lot of similarities between facility management and property management, there are also some major differences that need to be pointed out. In daily business interactions, if the differences and similarities between these two are unclear, it can often lead to wrong expectations or interpretations.
In this article, we will be uncovering the main differences between facility and property management.
Understanding facility and property management
You can enhance the value of your real estate assets by keeping in mind some key fundamentals of facility management through facility management, day to day operations of buildings are managed which includes repairs, energy management, utilities, landscaping, physical security, and overall maintenance.
Sila’s Facility management Services offers an organizational function that is responsible for integrating people, places, and processes within the property in order to improve the quality of life and overall productivity.
On the other hand, property management includes managing the property that is typically owned by another entity or person. Property managers work on behalf of the owners to preserve the property while also generating income.
Understanding facility and property management
You can enhance the value of your real estate assets by keeping in mind some key fundamentals of facility management through facility management, day to day operations of buildings are managed which includes repairs, energy management, utilities, landscaping, physical security, and overall maintenance.
Sila’s Facility management Services offers an organizational function that is responsible for integrating people, places, and processes within the property in order to improve the quality of life and overall productivity.
On the other hand, property management includes managing the property that is typically owned by another entity or person. Property managers work on behalf of the owners to preserve the property while also generating income.
What are the responsibilities of facility and property managers?
Many of the duties of facility and property managers overlap, which is the main reason why the two are often confused with each other. For instance, they are both responsible for keeping the building secure and safe, implementing energy efficiency initiatives, and talking to third-party service providers. But they are also different in their own ways.
The property manager represents the owner. They decide when to hold or sell the building and how it would generate income. They would typically leave the smaller tasks to the facility manager.
Of course, the tasks and responsibilities depend on the building size and the portfolio size. It also depends on whether the employer completely owns the building or leases it.
While the line between facility and property management may seem blurred at some places, here are the main responsibilities of a facility manager and property manager which can help us differentiate between the two.
Facility Manager
Oversees the owner-occupied and leased spaces
Maintains complete business systems and makes sure it works well
Manages the facility staff and delegating work to them
Keeps the building secure and safe
Makes sure the infrastructure and equipment in the building are always functional and working seamlessly
Conducts troubleshooting in case of equipment problems to check if the problem can be solved in-house or a specialist needs to be brought in
Property Manager
Oversees the complete building tasks
Manages all the tenant leases and fulfilling responsibilities of the building owner as mentioned in the lease
Acts as the main point of contact between owner and tenants
Handles rent payments from tenants and makes sure the payments come in on time
Helps building owners move towards their financial management goals
Communicates with the facility manager in case of any issues in the building facilities as reported by the tenants
Facility management
The main objective of facility management is to align and implement real estate strategies with productivity strategies while making sure that all the facilities in the building are working seamlessly. Using real estate as an instrument of service provision, the primary focus of facility managers is on the end user and the tenant’s needs. They are responsible for taking care of the needs of the occupants of the building–who may or may not be the property owners.
With facility management, the primary objective is cost-effectiveness and continuous supply of facilities in order to create an optimized work environment and in turn, improve the overall effectiveness and productivity. The performance indicators include the satisfaction level of occupants, the total cost of ownership, and the overall quality of facilities.
Property management
The main goal of property management is to implement real estate strategies for the property. With real estate as the main profit-generating instrument, it focuses on the owner and tenant relationship management to maximize net operating income. Contact Sila Real Estate experts
The property manager acts on behalf of the property owners and they are responsible for seamless cash flow and profit generation to increase the value for stakeholders. The performance indicators for property management include net operating income, net yield, and cash return.
Final words
Understanding the difference between facility and property management can help you manage your real estate in a more organized manner. By placing proper accountabilities on individuals who hold these roles, the decision-makers can accurately measure KPIs and understand whether they’re keeping their asset maintained and running efficiently.
SILA adopts a tech-driven approach, utilizing Robotics and IoT, Automated Compliance Management, and our proprietary technology (SILA Connect) to efficiently manage properties across India. As pioneers in technology within the facility management sector, SILA stands out as one of the best facility management service provider in India.
To delve deeper into our integrated facility management services, click here.
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1. What are soft services in facility management?
Soft services encompass a range of human-centered services aimed at creating a comfortable, secure environment. These services primarily involve human interaction and contribute to enhancing the overall ambiance. Examples include housekeeping, payroll management, pest control, front office management, pantry services, front desk support, and horticulture.
2. What are the hard services in facility management?
Hard services in facility management refer to the physical and structural elements that are essential for the operation, functionality, and maintenance of a facility. These services typically involve machinery, systems, and infrastructure. Some examples of hard services include mechanised cleaning services, managing & maintaining HVAC and Electrical Systems, Plumbing and Water Management, Fire Safety and Security Systems, Waste Management etc.
3. How does outsourcing Facility Management lead to cost savings?
Facility Management proves to be cost-effective. Managing spaces in-house can incur significant expenses. However, outsourcing it not only reduces the time your staff spends overseeing facility operations but also results in long-term savings.
4. What is mechanized housekeeping?
Mechanized housekeeping refers to the use of machinery, equipment, and automated tools in performing various cleaning tasks and maintenance activities within a commercial or residential space. This approach involves the use of specialized cleaning equipment such as vacuum cleaners, floor scrubbers, polishers, steam cleaners, pressure washers, and robotic devices designed to automate or simplify cleaning processes.
5. How does Facility Management play a key role in an organization's success?
Facility Management (FM) plays a pivotal role in an organization’s success by contributing to various aspects that directly impact efficiency, productivity, and overall performance. FM ensures that the physical workspace, infrastructure, and systems are well-maintained, safe, and conducive to work. A properly managed facility promotes productivity among employees by providing a comfortable and efficient working environment.
About SILA -
A Real Estate platform driven by an entrepreneurial spirit.
Our businesses include Real Estate Services which offer Facility Management, Contracting Solutions and Real Estate Advisory. Our other business is Real Estate Development. We have a diverse client base in various sectors which include large Corporates, Real Estate Funds, Landowners and Developers.
Over the last decade, SILA has scaled efficiently, managing over 150 million square feet of assets, with over 20,000 employees pan India. The platform is backed by Norwest Venture Partners and Samara Capital Group in our Real Estate Services and Development arms, respectively.
SILA is one of the best facility management service provider in Mumbai, Bengaluru, Delhi, Chennai, Hyderabad, Pune & more.
SILA is among the top facility management companies in India, offering comprehensive property management services and housekeeping solutions. As a leading facilities management company, SILA provides tailored FM solutions, including housekeeping services in Mumbai. Leveraging our expertise, we ensure seamless property management for clients nationwide. Whether you require housekeeping agency support or specialized facility management solutions, SILA delivers excellence in every aspect of your property’s upkeep and maintenance.
About Author -
Aniket Sheth
The insightful content in this blog is curated by Aniket Sheth, our esteemed Senior Vice President of Operations. With an impressive professional journey spanning over 13 years, Aniket has held key positions at prestigious brands, showcasing his exceptional leadership skills.
Aniket’s educational background is marked by an MBA from Cornell University, which laid the foundation for his successful career. He began his professional journey at EY in New York, contributing significantly to enhancing and implementing engagements for Fortune 500 companies.
Aniket’s strategic acumen, proficiency in asset management, and forward-thinking innovation have been instrumental in helping companies streamline their operations and achieve substantial cost reductions. His wealth of experience brings a unique perspective to the world of facilities management, making his insights invaluable for businesses seeking operational excellence.
