This chapter focuses on organizing and managing an office and ties together much

Question

This chapter focuses on organizing and managing an office and ties together much of the material you have previously learned into practical application. You will gain insight into what it will take for success in your own property management office.

1. Assume you are going to open a management office with yourself and one clerical/ computer support person. Estimate what you would consider to be all expenses to open your office.

2. Based on the question above, what would you estimate to be the monthly fixed expenses for this office?

Explanation / Answer

1) In view of the aforesaid mentioned question, as it is a hypothetical scenario for considering opening and managing an office property. Hence for deducing an approximate expenditure the following aspects / factors need to be taken into account such as the setting up / establishment costs of the office like permits / license to operate the business, staff / personnel costs, design, assets costs such as the IT equipment, networking, fixtures and other overheads expenditure which are necessary for functioning of the office optimally.

2)   The expenses on a monthly basis would depend upon the nature of business and the defined area of operations. Hence it is relevant to review the plan, and at the onset i.e. at the starting of business / office work out the operations expenses incurred at the beginning, as well as the recurring / ongoing expenditure. As this adds value towards having an overall understanding of the expenses flow, basically. In accordance with the above question, and the kind of small set up of the proposed office, the estimated expenditure on a monthly basis can’t be exactly deduced. As it would depend upon the actuals comprising of the following aspects overviewed on a broader scale such as the occupancy and administrative costs primarily the license, insurance fees, hiring / purchasing of IT equipment, Salary of the employee, property insurance, rent, electricity, water, phone, registration, GST (Goods, Services Tax). As a result, a rationale and pragmatic assessment of the monthly expenses would require taking into account of the variables which are aligned to the fixed assets of the particular company.

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