Tenant project management and in-house management are two distinct approaches to managing and overseeing projects within a real estate or property management context. Each has its own set of advantages and disadvantages, and the choice between them often depends on various factors, including the size and complexity of the project, the available resources, and the specific goals and requirements of the property owner or manager.
Many organizations use a combination of both approaches, relying on in-house management for certain projects and outsourcing to tenant project management for others, depending on their specific needs and priorities. If you are unsure about which route might be the best for you, hopefully, this in-depth discussion about both approaches can help you resolve your queries.
In-House Management
In-house project management involves managing and overseeing property-related projects using an organization’s own staff and resources. It gives the property owner or manager more direct control over the project, allowing them to make decisions on the fly while also dealing with the management side.
In-house teams can develop knowledge and expertise specific to the organization’s needs, which can be valuable in the long term, however, it also has limitations, including the need to hire and train staff, potential resource constraints, and limitations in expertise for larger or more complex projects.
For smaller and less complex projects, in-house management may be cost-effective since there’s no need to pay external project management fees. However, when it comes to large apartments or condominiums, delegating these tasks to a tenant project management company is more advantageous.
- Pros
- Direct control of the facility and management is under the owner.
- Cost-effective since you don’t have to pay management fees.
- Personalized service to tenants
- Cons
- Time and resource constraints to develop an in-house team.
- Training and development costs
- Lack of expertise in the context of procuring legal tenders, project expansion, and conflict management.
Tenant Project Management
Tenant project management involves outsourcing the management of specific projects related to a property to a third-party project management firm or individual. Tenant project managers typically have specialized expertise in real estate development, construction, renovation, or other related fields. They bring their knowledge and experience to the project.
Outsourcing project management can save time and resources for the property owner or tenant, as they don’t need to build an in-house team or allocate resources for the project. An external project manager can provide an objective view of the project, which can be valuable in decision-making and conflict resolution.
This route to tenant management can alleviate the burden on property owners or managers, allowing them to focus on their core responsibilities, and due to its scalability, projects of any size or scale can benefit from it. However, it’s worth noting that tenant project management comes with costs and may involve relinquishing some control over the project to external parties.
- Pros
- Can offer expertise and specialization specific to the project.
- Can save time and money.
- Get access to tools, contractors, and suppliers through the company’s network.
- Services can be scaled to meet the requirements of the project.
- Cons
- Hiring project management companies involves additional costs.
- Certain conflicts may take longer to get resolved due to additional steps.
Work With Perillo Construction
Managing tenants and large-scale projects can be challenging as it is, but when you don’t have a competent team behind you, both the tenants and owners may have to bear the cost of any issues that may come up. Fortunately, the answer to the dilemma is to work with a trusted company such as Perillo Construction.
With over forty years of experience, experts at Perillo Construction will ensure that your project sees the light of success. From consulting services (for both owners and tenants) to conflict resolution, legal guidance, and budgeting, we provide every tool necessary for your project. Call us today to learn more about our services!