What is a Property Manager? Role, Model, and Scope of Work

The building management model is a system used to organise, manage, and supervise activities within a building to ensure that all functions and services are carried out effectively and cohesively. Developing an effective management model enhances service quality, provides a satisfying experience for residents, and optimises long-term operational costs. 

03 COMMON BUILDING MANAGEMENT MODELS

1. Building management agent established by the developer 

In this model, the developer maintains central control over all aspects of the building operation. With in-depth knowledge of the project, from planning to construction, a developer can make flexible management decisions to optimise the building usage efficiency. 

Pros:

• Proactive control: Developer holds decision-making authority and supervises the entire operational process, ensuring consistency and effectiveness. 
• Optimised human resource costs: Using an internal workforce reduces management costs compared to hiring an external third party. 
• Data security: The Developer collects, stores, and manages all internal building information. 

Cons:

• Lack of specialisation: The internal management team may not be fully specialised across various areas such as technical, safety, customer care, legal matters, and operations, which can limit service quality control. 
• Recruitment and training challenges: Finding and training employees who meet the required qualifications can be significant, involving both time and cost. 
• Limitations in ensuring objectivity: It might not be easy to balance the benefits of stakeholders, including developers, residents and tenants. 

To address this, the Housing Law 2023 specifies the qualifications, certifications, and professional management processes required for building management agents. The model can maintain stability and transparency in long-term operations only when these conditions are met. 

Read more: The Housing Law 2023: Significant changes in operation management and residents' entitlements

2. Building management agent established by residents

Under Housing Law 2023, the Building Owner’s Committee represents the developer or residents in managing the building usage according to legal regulations. The Building Owner’s Committee has a 3-year term and is elected at the annual Owner’s Committee meeting at the end of each term.

A building with multiple owners and 20 or more apartment units must establish the Building Owner’s Committee. The members of the Building Owner’s Committee include representatives of the property owners, users of the apartment building if the owners are not present, and the developer if they still own any part of the building, except in cases where the developer chooses not to appoint a representative to the Building Owner’s Committee.

For buildings with a single owner or multiple owners but less than 20 units, the Owner’s Committee meeting will decide whether to establish a Building Owner’s Committee.

However, in the case of a Building Owner’s Committee in a building with a single owner, they have no legal status and official seal. The Building Owner’s Committee, with multiple owners, has legal status and an official seal, which grants them greater authority in activities such as managing, using, and reporting on the maintenance fund and signing contracts with management agents and maintenance providers.

Pros:

• Protects residents' benefits: Residents within the building elect the Building Owner’s Committee, allowing them to participate directly in operational management. This ensures that all decisions related to the operation align with the residents' benefits.

Cons:

• Legal procedure limitations: The Building Owner’s Committee lacks legal status and official seal in buildings with a single owner. There might be limitations when carrying out legal procedures in management activities.
• Lack of professional management skills: Some Building Owner’s Committee members may lack the professional expertise required for building operations and may not be fully aware of legal regulations, leading to inefficiencies.

Read more:

• How to distinguish Owners' Committees from Management Boards
• Building Owner’s Committee: Key Considerations in Applying the new Housing Law 2023

3. Building management agent established by a third party

In this model, the developer or Building Owner’s Committee hires a property management company to handle daily building operations, including technical management, security, cleaning, and resident and tenant management.

Pros:

• Balancing benefits between stakeholders: They serve as an intermediary, balancing the benefits of all stakeholders, including developers, residents and tenants, and contractors.
• High professionalism: Professional property management companies typically have well-trained and experienced teams, ensuring quality services.
• Long-term cost saving: Outsourced management companies often deliver superior cost optimisation for building operations compared to in-house management teams.

Cons:

• Higher costs: Professional property management companies may charge higher fees than internal management teams. However, this is a wise investment with long-term efficiency. With experienced staff and optimised working processes, the property management company can enhance operational performance and reduce costs, ensuring resident satisfaction.

Article 149 of the Housing Law 2023 also requires that buildings with elevators hire a property management company with the requisite operational management capacity. Therefore, a skilled management team must ensure operational efficiency for the building.

KEY ROLES IN THE MANAGEMENT TEAM

The Property Manager and the Chief Engineer are two key roles in the Management Team that are crucial to ensuring operational efficiency and service quality.

1. Property Manager

The Property Manager is responsible for all operational activities within the building. They supervise, coordinate and advise on management issues, ensuring consistent and high-quality services.

The Property Manager creates and monitors daily operational plans, ensuring compliance with legal regulations and serving the collective benefits of the residents. They also help the developer and Building Owner’s Committee control costs and use budgets effectively, ensuring financial transparency. Additionally, this role oversees essential areas such as technical management, customer service, labour safety, customer management, etc. Their strategic thinking and leadership skills are the key to enhancing property management standards, ensuring the project operates smoothly and develops sustainably over time.

2. Chief Engineer

The Chief Engineer undertakes various responsibilities, including operating technical systems, performing maintenance, overseeing renovation and design layout work, managing the quality of outsourced technical services, and overseeing energy management to ensure the building operates smoothly and efficiently. The Chief Engineer must be knowledgeable about technical standards and possess leadership skills, plan effectively, and ensure that the building's technical systems operate at their best.

The building’s technical team typically includes the Chief Engineer and technicians. The Chief Engineer supervises the entire team, ensuring that tasks related to operations and maintenance are always carried out correctly and safely. This role is also primarily responsible for managing the building's technical systems, planning costs, resolving arising issues, and reporting directly to the Property Manager or developer.

Choosing a suitable building management model is the key to a project's long-term success. A practical management framework focuses on facility operations and requires close coordination between management models, the Management Team, and key personnel. Property management companies must fully understand the importance of management models to optimise operations, ensure tenant satisfaction, and increase the project’s value. Developing an effective management strategy will help the developer and management company build credibility while providing smooth and efficient daily operations.

With a team of experts and operating procedures that conform to international and Vietnamese operating standards and regulations, Savills is Viet Nam's largest property management agent. We prioritise optimising investment costs, saving energy and operating costs throughout the project lifecycle to optimise operations and balance the benefits of all stakeholders.

Learn more about our Property Management Consultancy services.

Read more:

• All You Need to Know About Property Management 
• Comparison of the Housing Law 2023 and 2014 with Its Impacts on Building Operations
• The Criteria You Need to Pick the Perfect Property Management Agency