Property management as property rights governance

Purpose – To re‐examine the role of property management from an institutional economics perspective. Design/methodology/approach – The role of property management is explored by asking why property management has emerged from the first principle. Then, an analytical framework for property management is put forward. Different dimensions of institutional arrangements, ranging from open access to communal private property or solely owned private property, are discussed in the real estate property context. Findings – The paper shows that a unique feature of property management is its role in excluding outsiders and resolving internal conflicts among the stakeholders of communal private property. Research implications/limitations – This approach opens up a new research agenda for property management. The adoption of different institutional arrangements in property management can be explained by further studies. Practical implications – The efficiency of different institutional arrangements for the governance of communal private property is situation‐specific. An endogenous assumption of institutional regime in property management practice greatly expands the flexibility of management. Originality/value – This paper is the first to apply an analytical framework for interpreting the institutional arrangements in property management.