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Investing in real estate can be the most rewarding yet resource-consuming type of investment. Your real estate investment does not stop at purchasing or owning a property. Factors such as maintenance and risk assessment are required to minimize costs and depreciation.
However, real estate investors usually do not have the time to oversee and maintain the day-to-day operations of their property. This is where the concept of asset management comes into play and why having an asset management team can be beneficial for your property investment.
Asset management is the process of maintaining, handling, and organizing assets to maximize returns and minimize costs. Having an asset management team for your building can help cultivate your property’s market value.
Risk Assessment and Up-to-Date Strategy Planning
With a constantly changing market, it is important to assess potential risks and their impact on your property investment. Legal, economic, and natural disasters can happen at any given time but having an asset management team can help assess these potential risks and their effects on the property’s day-to-day operations and costs. Part of their expertise is to formulate strategies that can help mitigate these risks.
Additionally, asset management teams are equipped with current knowledge of the real estate market which can help identify opportunities to grow your investments.
Accurate Financial Records
Keeping an accurate and up-to-date record of your financial statements is crucial in your business. Investing in property comes with its costs, such as taxes, maintenance, and utilities, thus if mismanaged, it can cause a huge financial blow to your investment.
With the right asset management team and the help of a property manager, you can be assured that all finances are properly used to maintain the property and its value. Instances such as “ghost assets” which are misplaced assets, are eliminated from your financial records, ensuring you with accurate and up-to-date records.
Improved Service Efficiency
It is important for your property to be consistently maintained throughout its life cycle. Proper maintenance and quality services can help lower the vacancy rate of your property and build a good relationship with your tenants. With the right asset management team, you don’t have to worry about losing tenants or any additional costs in the long run.
Over time, property equipment and facilities depreciate and lose their efficiency when not maintained properly. This can lead to higher energy demand leading to higher utility costs. Preventive maintenance is necessary, which is why asset managers ensure that the property’s facilities and equipment are in top running condition to prolong their lifespan. Overall, you can reduce costs, maximize ROI, and lengthen the lifespan of equipment through proper asset management.
Life Cycle Cost Analysis
Delays occur when property equipment is damaged or in need of maintenance. To avoid this, asset managers use the Life Cycle Cost Analysis which helps them identify the entire cost of equipment from acquisition to disposal. This enables asset managers to predict the end of life of every piece of equipment in the property, thus preventing equipment breakdowns.
With its proven track record of handling various properties and facilities in the Philippines, KMC Savills’ asset management team can help you with your property investment by maximizing its returns and minimizing costs.
For more information about our Asset Management services, call (+63) 2-8403-5519 or send an email to [email protected] today!