SCHOOL OF ENGINEERING, ENERGY AND THE BUILT ENVIRONMENT

BACHELOR OF SCIENCE IN REAL ESTATE MANAGEMENT

LAND ADMINSTRATION AND MANAGEMENT

BEG3146

GROUP 6

1. Georgina Wangari Kangethe BRM/2022/51515

2. James Mumo Muli BRM/2022/50958
3. Tracy Achieng Ochieng BRM/2022/50472
4. Sharlin Jerop BRM/2022/51271
5. Braise Laban BRM/2022/50936
6. Paul Sewe BRM/2022/51251
7. Abur Nyok Nyok BRM/2023/39345
8. Philip Kiarie Njeri BRM/2023/40119
Question

Discuss the role of a property manager within the framework a the property
life-cycle. (15Marks)

Who is a Property Manager?

A property manager is an individual or company, that is hired to oversee the

day-to-day operations of a unit of real estate.

Property owners and real estate investors typically hire property managers
when they are unwilling or unable to manage the properties themselves.
Therefore, a property manager acts on behalf of the owner to preserve the
value of the property while generating income

What is the Property Life-Cycle?

Property life-cycle refers to the various stages that a real estate property
typically goes through from its initial development of acquisition to its
eventual disposition.

They generally include:

1. Acquisition of Property

Involves the initial purchase or development of the property and includes

activities such as site selection and due diligence

2. Development of Property
This stage involves planning, design, construction and permitting if the
property is being built from the ground up.

3. Exploitation or Operation of property

During this phase, the property is managed and maintained to generate

income and preserve its value. Activities such as leasing, tenant
management, property maintenance, financial management and compliance
with regulations

4. Conservation / Preservation or Optimization of Property

Property owners and managers may seek to optimize or preserve the

property performance and value. This could Involve implementing cast
saving measures, improving operational efficiency, enhancing amenities or
repositioning the property in the market to attract tenants or buyers

5. Sale or Disposition of the Property

Property owner may decide to sell or dispose the property due to various
factors such as achieving investment goals, capitalising on market
conditions, or strategic portfolio management.

Note Better:

Each property-life cycle poses unique challenges and opportunities for

property owners, developers, investors and managers.

What is the Role of a proper manager in the Acquisition of Property?

(A) Market Analysis

Property managers have in-depth knowledge of local real estate markets.
They can provide valuable Insights into property values, rental rates,
demand trends and neighbourhood dynamics, helping investors make
informed decisions about which properties to acquire.

B. Due diligence

Property managers may inspect properties, assess their condition identify

potential issues or needed repairs and estimate casts associated with
improvements.

C. Negotiation

Property managers may assist in negotiating the purchase. price and terms
of acquisition. Their knowledge in local market conditions and property
values can be invaluable in securing favourable deals for investors.

D. Relationships with sellers

Property managers often establish relationships with sellers, real estate

agents, and other Industry professionals. This connections may be beneficial
in identifying off-market opportunities and assessing exclusive deals that
may not be publicly available.

E. Financial Analysis

Property managers can help investors evaluate the financial viability of

potential acquisitions. They may analyse rental income potential, operating
expenses, vacancy rates and potential returns on Investment to determine
whether a property is a sound investment.
The operation phase in the property life cycle involves the ongoing
management and utilization of a property after its development or
acquisition.

Below are key aspects of the operation phase:

1. Property management

This includes the day-to-day management of the property, such as

maintenance, repairs, tenant relations, and rent collection.

2. Financial management

-It involves handling of financial aspects like budgeting, accounting, payment

of expenses, and monitoring of cash flow.

3. Marketing and Leasing

- Activities related to attracting tenants, negotiating leases, and ensuring

optimal occupancy rates.

4. Legal and Regulatory compliance.

-It involves ensuring adherence to local laws, building codes, zoning

regulations and any other legal requirements.

5. Maintenance and Repairs

- Regular upkeep of the property to maintain its value and functionality,

including preventive maintenance and emergency repairs.
6. Tenant relations

Involves addressing tenant concerns, handling complaints and ensuring

tenant satisfaction to minimize turnover.

7. Utilities and Services

It involves managing utility payments and services such as electricity,

water, heating, and waste disposal.

8. Security and safety.

Involves implementing security measures and ensuring compliance with

safety standards to protect occupants and the property itself.

9. Sustainability initiatives

- Involves implementing energy-efficient practices, waste management

strategies, and other sustainable initiatives to reduce operating costs
and environmental impact

10. Performance monitoring

Involves tracking key performance Indicators (KPIs) such as occupancy

rates, rental income, operating expenses, and overall Return on
Investment (ROI)
The property manager plays a critical role in the development of an
estate particularly when it involves the introduction of capital. Here are
some key responsibilities and roles on of a property manager in this
context:

1.Financial planning and Budgeting.

He or she develops a comprehensive budget for the project, including

capital expenditures.

2. Project management

Overseeing the development process from the start to finish, ensuring

that timelines and budgets are adhered to.

Coordinating with contractors and other stakeholders to ensure the

project meets design and quality standards.

3. Regulatory compliance

The manager ensures that the development complies with local zoning
laws, building codes and other regulations.

Securing necessary permits and licenses for the development.

4. Stakeholder communication

Acting as the link between investors, developers, contractors and other

stakeholders, the manager provides an important link.

Providing regular updates on the projects progress and financial status.

5. Sustainability and innovation

Incorporating sustainable practices and innovations to attract tenants or

buyers.

Evaluating and Implementing new technologies and methods that can

improve the development process and long-term property management.
Property manager roles in disposition of property.

A person, either natural or entity can decide to dispose off property for
financial reasons, investment strategy among others.

A property manager can play a helpful role in the transition of ownership of a

property in Kenya, even though their involvement isn't explicitly defined by
law. Here's how they can assist, keeping in mind the legal limitations

Facilitating the Process (Within Legal Bounds):

 Preparing the Property: The manager can oversee minor repairs,

cleaning, and potentially staging (making the property more appealing
to buyers) to improve its saleability.
 Market Research: Understanding the current market value is crucial.
Consider getting a property valuation by a professional appraiser.
Research recent sales of comparable properties in your area.
 Property advertisement: property managers may have access to
marketing resources or partnerships that can help with advertising the
property for sale through property portal websites dedicated to real
estate listings and social media platforms for instance Facebook
Marketplace.
 Documentation Management: They can ensure all necessary
documents, like title deeds, land certificates, and any relevant
approvals, are readily available for the sale and transfer process.

Protects interest ;Clear and concise contracts outlining the terms of the
sale prevent misunderstandings and potential disputes down the line.

These transactions are submitted to the Land Control Board Consent.

 Communication Channel: The manager can act as a communication

point between the seller, buyer, and potentially the real estate agent,
 facilitating information exchange and keeping everyone informed on
matters related to the property.
 Post-Sale Assistance. The manager could assist with coordinating
the handover process to the new owner, including scheduling
inspections, ensuring access to the property, and potentially collecting
final utility bills on behalf of the seller (if authorized in the contract).

legal framework that guides sale of property

Constitution of Kenya, 2010:

 Establishes the foundation for land ownership rights and access to land
information.

Land Act No. 6 of 2012:

 Defines various land ownership types (freehold, leasehold) and outlines

the rights and obligations associated with each.
 Provides regulations for land transactions, including subdivision and
registration.

Land Registration Act, 2012:

 Governs the registration of land ownership and interests in land.

 Establishes a secure system for recording ownership transfers.

Tax Implications:

 Stamp Duty Act (Cap 480): Imposes a tax on the transfer of

property.
 Income Tax Act (Cap 470): May apply if there are capital gains from
the sale.
  Value Added Tax, 2013: May apply to the sale, leasing, or renting of
commercial properties.

Conclusion

The legal and financial aspects of closing are typically handled by lawyers,
the Land Registry, and potentially the buyer's lender and takes place at the
Land Registry office or another mutually agreed-upon location.

 All parties involved, or their representatives, sign the necessary

documents for ownership transfer.
 The buyer makes the final payment (or the escrow agent releases the
funds).
 The Land Registry officially transfers the title of the property to the
buyer.
 The seller receives the sale proceeds, minus any agreed-upon fees or
closing costs.
 Ways of Conserving/Optimizing/Preserving properties in Facilities and
Management

•Conserving, optimizing and preserving property in facilities and

management can be achieved through several strategies which include:

Energy Efficiency.

This involves implementing energy-saving practices in the properties such

as using LED lighting, optimizing HVAC systems, and improving insulation
to reduce utility costs and environmental impact.

Maintenance Planning.

-Properties should be scheduled for regularly maintenance of the

equipments and facilities to prevent breakdowns, extend lifespan and
avoid costly repairs.

Water Conservation.

-It involves reducing water consumption through efficient fixtures, leak

detection programs and using recycled water where possible.

Waste management

This involves implementing waste reduction and recycling programs to

minimize landfill waste and maximize resource recovery.

Sustainable Materials

It involves using environmentally friendly materials that are durable and

have a lower environmental impact.

Education and Awareness

The staff, tenants or whoever are to use the property should be educated
about sustainable practices and encourage their participation in conservation
efforts.
Space Utilization.

Optimize space usage to avoid unnecessary expansions or renovations,

which can conserve materials and resources.
Monitoring and Measurements

Regularly monitor resource consumption and performance metrics to

identify areas for improvement and track progress over time.

Areas that need improvements should be attended to immediately.

Compliance and Standards

It should be ensured that the property adheres to local regulations and

industry standards for environmental sustainability and property
management.

Advantages of Conserving, Optimizing and Preserving property in Facilities

and Management.

Cost Saving

• Implementing energy-efficient practices, water conservation measures

and waste reduction strategies can lead to lower utility bills and
operational costs overtime.

Long-Term Sustainability.

By conserving resources and minimizing environmental impact, property

managers contribute to the long-term sustainability of the property and
surrounding environment.

Reduced Risk and Liability

• Proper maintenance and management practices reduce the risk of
equipment failures, property damage and potential liability associated
with environmental issues.

Operational Efficiency.

Optimizing space use, implementing efficient building systems and using

smart technologies can improve operational efficiency and streamline
property management processes.

Improved Tenant Satisfaction.

Sustainable practices often lead to healthier indoor environments,

improved comfort and better overall tenant satisfaction.
 Compliance and Reputation

Meeting environmental regulations and obtaining certifications e.g. LEED

can enhance the property's reputation, attract environmentally conscious
tenants and improve relationships with stakeholders.

Enhanced Property Value

Sustainable property management practices can increase the

attractiveness and marketability of the property, potentially leading to
higher property values and rental rates.

Resilience to External factors.

Sustainable buildings are often more resilient to fluctuating energy

prices, water scarcity and regulatory changes, reducing vulnerability to
external economic and environmental factors.

Employee Productivity.

Green buildings and sustainable practices have been linked to improved

employee productivity and satisfaction leading to better tenant retention
and workforce attraction.

Corporate Social Responsibility. (CSR)

Demonstrating commitment to sustainability through property management

aligns with CSR goals, enhances corporate reputation and attracts socially
responsible investors and partners.
CONSERVATION/PRESERVATION OF PROPERTY. COPTIMIZATION)

Property preservation means to maintain and safeguard properties. It is

the process of protecting and maintaining vacant, foreclosed or
abandoned properties to prevent them from deteriorating, vandalizing or
violating local codes and regulations. It involves preventive maintenance,
proper storage and protection against wear and tear. Optimization of
property refers to the process of evaluating your real estate assets and
operations to identify efficiencies, reduce costs, create strategy and
maximize value.

It also refers to the process by which the savviest businesses minimize

their occupancy cost and increase the ROI (Return on Interest) on their
owned and leased properties.

This may include regular maintenance using data analytics, and

optimizing

space utilization to ensure resources are used effectively.

Property Conservation involves implementing measures to reduce energy,

water and resource consumption.

It involves using energy-efficient technologies, water-saving fixtures, and

sustainable practices to minimize environmental impact.