Study On The Development Of Property Management Industry Based On System Analysis

As an emerging industry, property management has begun to take shape became a national economic growth after20years’exploration.The rapid development of property management industry has greatly improved the urban appearance and the living environment,as well as people’s living standards. Meanwhile, the employment channels have been broadened and the tertiary industry has been promoted. Property management as a social service industry, which involves many sectors and has social imparts, is comprehensive and is becoming more and more important. It has became the most important part of urban management and community construction as it’s unique affect in community and environment construction and management. However, during the rapid development, property management has also encountered lots of difficulties and pressure. A series of problems and contradictions have been revealed. At present, poor condition for development, low operational efficiency and bad service are major problems exist in property industry, among which, low degree of satisfaction of property owner the lack of supervision of government, and inadequate laws and regulations also take a part. Therefore, the government and social organizations from all sectors have already pay great attention to the development of property management industry, and the study on these problems and solving them has become a crucial issue.This paper studies the subsystem of property management enterprises, property owners and government, and analyzes the relationship among the three study objects with the principle of system property analysis, then proposes the theoretical framework for study on the development of property management, which provide basis for making decision on property management, help to support property management enterprises overcome difficulties, and promote health development. Mainly, the paper includes the following part:(1) The internal structure and the target as well as the external environment of property management industry system are proposed through the definition of the property management industry system. Property management enterprises, property owners and government make the three major subsystems of property management industry system. As a part of service industry, it’s more important for the property management enterprises to create a safe, comfortable, civilized, harmonious and beautiful living space to enhance social benefits than gain economic income. Also, the development of the property management industry is affected by political and legal environment, economic and cultural environment, natural geographical environment and technological environment as well as human resource environment.(2) On the basis of fully survey and analysis of the present situation and the existing problems of the property management enterprises in Nanjing. This paper studies the development condition and the business efficiency of property management enterprises. It can be seen from the study, the development condition is poor and the efficiency is low. On the whole, this paper analyzes the bad conditions for the development of property management industry and finds out the major factors which affect the operational efficiency of property management enterprises. In the study, this paper proposes the evaluation index system for the development condition of the property management industry and evaluates the development condition by the fuzzy comprehensive evaluation and empirical analysis. Research shows that at present, most of property management enterprises are in weak conditions, the level of proficient qualification, business scale, and service quality as well as the lack of professionals are important factors which affect property management enterprises. And then, an efficiency evaluation index system is built and the operational efficiency of property management enterprises is evaluated through the principal component analysis as well as empirical analysis. The evaluation is that the operational efficiency of property management enterprises largely depends on the actual collection rate, the margin cost, non-public service revenue and the proportion of labor productivity.(3) This paper analyzes the role of property owners in property management industry and proposes that the satisfaction of property owners is the prerequisite for development. On this basis, owners’satisfaction and the price tolerance is studied, and a model is built. Empirical data is adopted to quantitatively analyze and verify the relationship between the owner’s satisfaction and price tolerance, and a positive relationship is found in the analysis, also, assumptions which affect price tolerance were verified. Research also shows that owner’s involving in property management, the perception of a fair price, and the quality of property management service will affect owner’s satisfaction, and their relationship is positive. And then, the paper analyzes the reasons why the degree of the owner’s satisfaction is low. Mainly, there are5factors:weak consumption awareness of property owners, low level of the qualification of property management business, the two-way-mechanism for equal choice hasn’t been established yet, the service can’t meet the owner’s needs and expectations.(4) According to both economics and the current reality point of view, the paper analyzes the market failure and the necessaries for the government’s intervention. Research shows the property management service is a quasi-public goods; the "adverse selection", as a result of inadequate information of property owners, will exile companies with high level of service from the property management market instead of companies with low level of service, finally the overall level of service decline; due to the existence of externalities, the supply of property management market can’t meet social optimum; meanwhile, due to limited knowledge and capacity, as well as limited time and energy, the property owners’ purchase decisions are limited, as a result, the adverse selection was born. In short, the property management market’s failure needs government’s intervention.(5) The paper analyzes the game-relationship among property management enterprises, property owners and the government: the property management service and the fee is the focus of the game between property management enterprises and property owners, the conflict between the property management market and the government’s intervention as well as the balance between the cost and benefit is the major part in the game between property management enterprises and the government; the government’s investment in property management business and the expectation of property owners is the key of the game between the government and property owners. The game-model shows that, the most reasonable model is the model that combines property management enterprises, property owners with the government. It is a model in which the market mechanism is adopted to attract both property management enterprises and property owners into property management with the policy made by the government.Finally, this paper proposes suggestions for the development of property management industry. First, we should establish a standardized system of corporate governance; enhance the level and quality of property management service to improve operational efficiency of property management service and owner’s satisfaction. Also, the brand strategy should be created to increase the market share. And, customs should be "lock" to cultivate loyalty. Second, property owners’consumption awareness should be cultivated and owners committee should be set up to give full play to the role of owners’ commission. Third, the government should strengthen its intervention to avoid market’s negative effect. Various means should be taken to avoid market’s failure; combine property management with community management; improve the fee-charging system and charge fee according to the level of service; the benefits of the third aspects of the game should be reasonably established, improve the association of property management-a self-regulatory organization of property management industry. Fourth, enhance public awareness and set up a correct direction for public discussion, speed up the cultivation of property management talent, give full play to third-party organizations to strengthen the supervision of the real estate development.