RVP Corner.(what'sup?)

In RVP Corner JPM shares the thoughts and opinions of an IREM Regional Vice President on a single topic covered in the magazine. This issue, IREM Region 9 Vice President Dale Nusbaum, CPM[R], discusses the relationship between property managers and brokers.

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Nusbaum oversees the activities of IREM chapters in Illinois, Minnesota and Wisconsin. He is President of Park Ridge, IL-based McLennan Property Management Company, AMO, which manages commercial, industrial and residential properties. Nusbaum earned the CERTIFIED PROPERTY MANAGER (CPM) designation

from IREM in 1977 and served as IREM Chicago Chapter No. 23 president in 1995.

How can a good relationship with brokers be beneficial to property managers?

The broker becomes another set of trained professional eyes, which can assist and enhance the property manager's efforts. As the broker works to renew leases and fill vacancies, the property manager realizes a steady stream of income due to higher occupancy. The property manager gains valuable insight into the brokerage end of the business, which in turn sharpens the manager's knowledge and skills.

An additional source of income for the manager will be created in the form of management fees and construction supervision fees for capital and tenant improvements, which come about as a result of brokerage activities.

How should property managers identify broker associations?

Search the Internet, look in the phone book and inquire about brokers when talking with other professionals like attorneys, accountants and fellow members of real estate associations, like IREM.

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How can property managers best connect with brokers on a professional and personal level?

Invite the broker out to breakfast or lunch for a business discussion. Consider joining an association that the broker belongs to and attend their meetings and functions. It is important to maintain the relationship by keeping in touch with the broker. Consistency is crucial, but be careful to avoid being a nuisance. The occasional phone call, e-mail or personalized note is essential and appropriate.

How do the financial viewpoints of property managers and brokers typically differ?

The property manager has a tendency to focus on the budget and bottom line of the property's operations while the broker may lobby to persuade the owner to make cosmetic and capital improvements that will ultimately generate a leasing fee or sales commission.

What types of incentives or working agreements can property managers offer brokers to help build trust?

Referral fees are a great incentive and certainly at the top of the list. The property manager could also reciprocate by introducing the broker to some of the manager's key customers. Leasing fees and sales generated as a result of these new contacts could create referral fees back to the manager.

For an in-depth discussion of the relationship between managers and brokers, please see the feature, "Profitable Partnerships," on page 30.

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