Why one Tennessee property manager cannot carry a capital improvement program alone

Why Tennessee high-rise boards are rethinking capital project oversight

Every successful high-rise community depends on strong onsite leadership. Community managers understand the building, know the residents, and keep daily operations running efficiently. They coordinate vendors, address homeowner concerns, support board initiatives, and often serve as the face of the community.

But as capital improvement projects continue to grow in complexity and scale, many Tennessee high-rise boards are recognizing an important reality: a talented manager is critical to a project's success, but no single manager should be expected to carry an entire capital improvement program alone.

The responsibilities facing high-rise boards have changed considerably over the last several years.

Throughout Tennessee, particularly in Nashville's rapidly growing high-rise residential market, boards are balancing aging building systems, reserve planning needs, insurance cost increases, energy management considerations, labor challenges, and rising resident expectations around communication and transparency.

At the same time,  luxury condominium owners increasingly expect a hospitality-driven living experience. They want amenities to remain attractive, service levels to remain high, and building operations to continue seamlessly, even during major construction efforts.
 

Why major capital projects require more than onsite management alone

These expectations create a challenging environment for both board members and onsite management teams. Capital improvement projects often require coordination among engineers, architects, contractors, legal advisors, insurance professionals, lenders, financial consultants, and numerous vendors.

They also demand detailed project communication, budget management, schedule oversight, risk assessment, documentation control, and board reporting. When all of those responsibilities are concentrated with one individual, even the most experienced property manager can find themselves stretched too thin.

The challenge is rarely about capability. More often, it comes down to having the right support structure in place.

Many boards continue to approach capital projects from an operational perspective. They assume the manager will coordinate stakeholders, maintain communication, oversee progress, and keep the project moving forward. While managers undoubtedly play a central role, today's large-scale capital initiatives often require a broader governance model with dedicated resources and clearly defined responsibilities.
 

How capital improvements have evolved in Tennessee high-rise communities

This becomes increasingly evident as projects become more expansive. A balcony rehabilitation may seem relatively straightforward, yet the board must still review bids, coordinate contractor schedules, oversee expenditures, communicate with residents, and oversee that the project aligns with long-term community objectives.

Similarly, parking structure repairs, elevator modernization projects, or building system upgrades may involve multiple consultants, phased construction timelines, and extensive financial analysis.

For many Tennessee high-rise communities, capital projects now extend far beyond deferred maintenance. Boards are investing in amenity enhancements, technology upgrades, building modernization initiatives, security improvements, sustainability efforts, and resident experience enhancements designed to preserve property values and maintain a competitive advantage in a fast-evolving market. These initiatives often affect operations, finances, and resident satisfaction long after construction is complete.
 

Why project structure matters for Tennessee condominium boards

FirstService Residential's owner's representative program demonstrates why structure matters. For clients who engage this service through a separate agreement, support can begin during preconstruction with a benchmark scope and schedule, kickoff meetings with management and the board, stakeholder contact lists, weekly meeting cadence, initial schedule and budget development, RFP creation, consultant site visits, and bid leveling for scope, price, and timeline.

During design, support may expand to design team coordination, value engineering, lead-time recommendations, permit coordination, and contractor RFP preparation. During construction, the owner's representative can help monitor contractor performance against cost, schedule, and risk objectives; review pay applications; evaluate change orders; track submittals and RFIs; and oversee punch list and closeout activities.
 

Balancing capital projects with daily building operations

As projects advance into design and planning, support can expand to include coordination among consultants, value engineering discussions, procurement planning, permitting assistance, and project schedule oversight. During construction, project support may involve monitoring contractor performance, reviewing payment applications, evaluating change orders, tracking submittals and RFIs, facilitating progress meetings, and overseeing project closeout activities.

That level of project management can be difficult for one individual to successfully manage while also maintaining daily building operations, supporting residents, overseeing vendors, and serving the board.
 

Building the right support network behind your community manager

A strong manager remains one of the most valuable assets a community can have. However, boards should also evaluate the broader network of support that exists behind the manager. This includes understanding how project information is shared, how challenges are escalated, how decisions are documented, and when specialized expertise is brought into the conversation.
 

The risks of relying too heavily on one property manager

"Boards should be cautious when a capital project depends too heavily on one individual. The manager may be excellent, but the board still needs defined roles, escalation points, documentation and access to specialized resources. That structure protects the manager, the board and the community."

Gabrielle Leary, vice president, high-rise communities at FirstService Residential

One of the first indicators that a project lacks sufficient structure is uncertainty around accountability.
 

Creating accountability throughout complex capital improvement projects

An engineer may recommend one solution while a contractor proposes another. Residents want answers. The finance committee needs information on funding implications. The board wants confidence that projected costs and timelines are realistic. Without a clear process for communication and oversight, information can become fragmented, making it difficult for the board to evaluate options effectively.

When that occurs, boards may find themselves making major decisions without having complete visibility into potential risks, budget impacts, or long-term consequences.
 

Why clear communication is essential 

Communication challenges frequently emerge as well.

During significant capital projects, residents often ask the same questions repeatedly. What work is taking place? How long will construction continue? Will amenity access change? What level of disruption should residents expect? How will project costs affect the community? What is being done to minimize inconvenience?

When communication is inconsistent, resident concerns can escalate quickly.
 

Meeting resident expectations in Tennessee luxury high-rises

This is especially true in Tennessee's luxury high-rise communities, where resident experience remains a key differentiator. Homeowners expect proactive communication, transparency, and confidence that community leadership has a thoughtful plan in place.

Gabrielle adds,

"The most successful boards approach capital projects as long-term stewardship decisions rather than individual construction projects. When boards have clear visibility into priorities, project risks, financial impacts and resident expectations, they are better positioned to make decisions that protect both the physical asset and the community's future value."

That mindset reflects a broader shift occurring among many successful high-rise communities. Rather than evaluating projects solely from a construction perspective, leading boards consider the larger impact on resident experience, operational continuity, financial sustainability, and long-term property performance.
 

Defining roles, responsibilities, and decision-making authority

A stronger support model begins with clearly defined responsibilities and expectations. Boards should understand who is responsible for each component of the project, which decisions require board approval, what reporting requirements are necessary, and when subject matter experts should be engaged. Depending on the project scope, that may include engineers, attorneys, insurance consultants, financial advisors, reserve specialists, energy experts, or other professionals.

Financial considerations are especially important. Major capital initiatives can lead to complex discussions surrounding reserves, assessments, financing options, insurance obligations, and future budget planning. Access to specialized financial expertise can help boards better evaluate alternatives and make informed decisions.
 

Leveraging operational resources to support community goals

Operational resources can also play a meaningful role. Energy consultants can assist with infrastructure and efficiency considerations. Communication platforms can streamline information sharing and improve transparency. Resident engagement and hospitality resources can help boards preserve service standards and maintain a positive resident experience throughout construction.

Importantly, none of these resources replace board authority. Instead, they provide the information, perspective, and expertise that support better governance.

The most effective capital project support systems have one thing in common: they provide boards with visibility before issues become urgent. They also give managers access to additional resources and expertise, reducing the likelihood that critical project responsibilities become concentrated with a single individual.
 

What Tennessee high-rise boards should look for in a property management partner

For Tennessee high-rise boards, the takeaway is clear. Do not evaluate a property management partner based solely on the capabilities of the manager assigned to your building. Evaluate the full infrastructure of support that stands behind that manager.

Ask how major projects are coordinated. Ask how risks are escalated and tracked. Ask how resident communication is managed. Ask how technical, financial, operational, and project-specific expertise is incorporated throughout the process.
 

Successful capital improvement programs depend on structure and collaboration

Capital improvement programs are simply too important to depend on extraordinary efforts from one person. Successful outcomes require structure, collaboration, accountability, and access to specialized resources.

When those elements come together, boards can spend less time responding to unforeseen challenges and more time making informed decisions that protect property values, strengthen resident satisfaction, and support the long-term success of the community.

Read next: In part three, we explore how high-rise boards can protect resident experience, service levels, and hospitality expectations while major capital improvements are underway.

Contact FirstService Residential today to learn more about how we can support your Tennessee community or building.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.