A Comprehensive Overview of Property Asset Management
In its purest form, property asset management is the maintenance and upkeep of business buildings and facilities. Effective property management can help streamline operating costs and even increase efficiencies.
But how does it differ from regular asset management, and what role does a property asset manager play?
What is a Property Manager’s Role
A property asset manager is in charge of all assets associated with a building and its facilities. They seek to make those assets deliver value in line with a company’s core business goals while also assisting in the provision of suitable working environments for employees.
This position is also known as a facilities manager, a property manager, an asset manager, an estates manager, or a buildings manager. The various titles reflect how the scope of the job role can differ from company to company.
A property asset manager will typically keep an accurate inventory of all property-related assets that need to be maintained or replaced. This entails gathering critical data (asset name, type, and financials) and monitoring asset performance throughout the asset life cycle.
A property asset manager is also responsible for asset maintenance and may be in charge of building services such as security, parking, and cleaning.
The job description may also include asset risk assessments, analysis, and reporting. The following are examples of typical roles:
Keep a Fixed Asset Register:
Property asset managers and financial accountants need a centralised repository where they can get an accurate and up-to-date view of all the fixed assets they own. This is necessary for financial reasons, as companies must know the total value of their fixed assets.
Making decisions with assurance is also aided by knowing the precise status of the assets you own. Situations involving audits and compliance may be simpler to handle because most asset management systems have an audit trail feature that makes it easy to keep track of all the activities pertaining to your fixed assets.
Calculate Fixed Asset Appreciation and Depreciation
On their balance sheet, businesses must declare the total value of their assets. This necessitates an accurate valuation of their assets from acquisition to disposal. Companies can use various methods of appreciation and depreciation with the right tool. Straight line and double-declining balance are the most common depreciation methods.
Finance Managers must adhere to a standard when recording and reporting the value of their assets. Some of the well-known accounting standards supported by most building management software are GAAP (Generally Accepted Accounting Principles), IFRS (International Financial Reporting Standards), and BSI (British Standards Institution).
Building Management and Maintenance
Maintenance costs can account for up to 7% of total property costs, so most businesses track all aspects of building maintenance using the maintenance features of their facilities management product. CMMS features enable organisations to effectively plan maintenance and respond to reactive maintenance tasks.
Some of the most common reasons facilities managers use maintenance features are job assignment, work orders, engineer schedules, ordering replacement parts, and maintenance reports.
Buildings that are well-maintained typically live 10 to 20% longer and have higher occupancy rates. External maintenance teams are frequently hired to maintain office buildings, and they are likely to update your software or use their own.
What Are the Advantages of Asset Management for Real Estate?
In business, properties can account for 5 to 20% of total fixed asset costs. Effective property asset management can assist a company in identifying inefficiencies.
It can also spot opportunities that will benefit finances and result in a well-run, efficient workplace.
Property asset management can provide the following advantages:
- Asset tracking and record-keeping accuracy
- Comprehensive asset performance monitoring
- Service and work history
- Optimisation of the work environment
- Improved understanding of operating expenses
What is The Definition of Property Asset Management
Property asset management is concerned with the physical assets that support day-to-day business operations.
These assets are classified into two types: immovable assets and movable assets:
- Industrial, retail, and office space are examples of movable assets. In addition to utilities (such as electricity, water, and sewerage), lighting, lifts, and fire alarms.
- Any asset that is not attached to an immovable asset is referred to as movable. Machinery and equipment, vehicles, printers, photocopiers, IT equipment, employee uniforms, and signage are all examples.
Property asset management entails tracking and monitoring the financial value of assets over time to record their appreciation or depreciation.
Utility management, lease management, preventative and reactive maintenance activities, workspace management, security management, and cleaning are all covered.
Visitor tracking and management is also an important part of the process for keeping business premises and facilities safe and secure.
What is The Difference Between Property Asset Management and Regular Management?
Asset management is the tracking and monitoring of company assets in order to maximise their value. These include both tangible and intangible assets.
Machinery and equipment, for example, IT hardware and infrastructure, fleet assets, or digital assets.
The goal of asset management software is to maximise return and extract the most value from a company’s assets.
Property asset management, on the other hand, is more concerned with optimising operating costs while meeting the needs of employees and their workspaces.
How Does Property Asset Management Help Business?
By automating and simplifying a number of processes, asset management software can help make property asset management more manageable and time-consuming.
It can also be more cost-effective in the long run than hiring a team of facility managers.
An efficient asset management solution can provide a comprehensive view of all facilities and assets. This is especially useful for property asset managers who are in charge of multiple sites across the country or around the world. Or for companies with hundreds (or thousands) of assets to manage.
Modules for scheduling preventative and reactive maintenance, managing work order requests, self-service requests, and reporting may be included in such software.
Some solutions may also include space management, relocation management, and occupancy management for various work areas and floor plans.
Modern solutions are also web-based and mobile-friendly, allowing property asset managers to be more responsive and work from any location, on or off-site.
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