MNT402 - Managing Maintenance Operations and Property Risk

Learning Objectives

Lesson 1: Developing a Customized Maintenance and Risk Management Program

A successful property maintenance and risk management program helps avoid liability and reduce operating expenses/increase NOI by identifying and addressing potential problems well before they become significant safety and financial risks.

In this lesson, you will learn how to:

-  Recognize the importance of owner’s goals when developing or monitoring a maintenance and risk

management program

-  Reduce risk by developing and implementing a successful and proactive maintenance program

-  Identify components necessary in a maintenance policy and procedure manual

-  Develop a maintenance and risk management budget and capital improvement plan

Lesson 2: Conducting and Monitoring Property Inspections and Risk Analysis

Regular inspection ensures a proactive approach to maintenance that preserves the owner’s investment and eliminates reactive maintenance. This results in higher resident and/or commercial tenant satisfaction and retention as well as attracting new residents and/or commercial tenants. Implementing appropriate risk management strategies reduces the potential for losses and the severity of their consequences.

In this lesson, you will learn how to:

-  Prioritize activities, marshal resources, and develop a budget to accomplish maintenance and risk management goals

-  Conduct property inspections to identify and document needed repairs and potential risks, and develop procedures to resolve maintenance needs

-  Identify, recommend, and implement risk management strategies

knowledgeably with maintenance personnel and contractors to ensure proper, proactive maintenance and efficient, cost-effective operation.

In this lesson, you will learn how to:

-  Develop and apply guidelines and procedures to ensure proper maintenance and operation of major building mechanicals and systems.

Lesson 4: Managing Maintenance Activities

Management of onsite maintenance staff and contractors ensures cost-effective and efficient work, while proper communication ensures owner buy-in and resident and/or commercial tenant satisfaction.

In this lesson, you will learn how to:

-  Determine which maintenance activities are best handled by onsite maintenance staff vs contractors and why

-  Create detailed job specifications and manage the bidding process from RFP to awarding the contract

-  Develop procedures for establishing contracts that protect the owner and management company

-  Identify proper contracting procedures to avoid ethical challenges, litigation, and liens against the owner and property

-  Identify strategies and communication protocols for managing contractors and contract work

Lesson 5: Mitigating Risk Through Insurance

Proper insurance coverage helps to mitigate or transfer risk from the property manager and owner.

In this lesson, you will learn how to:

-  Describe the importance of transferring risk away from the owner and management company through the purchase of insurance

-  Define various insurance coverage types and general insurance concepts

-  Manage the incident response, incident reporting, and claims process