Challenges in real estate asset management that can hamper your growth 

08.09.22 04:49 PM Comment(s) By Assetsoft

The real estate business is not only about the properties; the assets that make up the structure of your properties and make them rent-worthy are equally vital for the business to run seamlessly. Maintaining, updating, and constantly keeping track of them is a part of any property manager’s job. But a property manager has a thousand other odd jobs to handle, from tenant onboarding to common area maintenance and more. 

 

No matter how boring or tedious asset management work is, it is unavoidable. Managing these assets comes with its own set of challenges that can become major roadblocks for your business, to say the least. Read this blog to find out how these 5 challenges in real estate asset management can become significant problems for your business. This article is carefully curated and analyzed based on industry insights that our team has gathered through years of experience in working with real estate businesses.  

Top 5 challenges in real estate asset management 

Assets in a real estate business are countless, and each property and unit has its own set of assets, and property managers need to be aware and updated about them at all times. But, at the same time, they also need to look out for these red flags to understand the underlying problems in your asset management system. It will also help you understand if it is time to make an upgrade and look for technology implementation plans.  


  1. Scattered data of your assets 

 

The real estate industry was never very keen on technology selection up until recently, when the scenes changed due to the pandemic. To date, most real estate businesses use spreadsheets and crude manual methods to keep updates about their assets. Unorganized data storage of your assets can also lead to a lot of monetary loss. The Harvard Business Review report on IBM research points out that the US economy alone loses $3.1 million a year due to bad data quality. 

 

Without access to proper data will never understand which assets are performing the best or which ones are draining all your money and need immediate replacement. Having a centralized system from the beginning will help you stay in better charge of your assets. A software-based system will also provide you with ample data analysis and insights about your assets to boost your profits.  


  1. Hindrance in accounting for your assets 

 

All of your assets in your properties need timely renewal and yearly or monthly maintenance work, you spend a good amount of money on these, but most of the time, that transaction happens in petty cash. That means missing invoices or informal work that can end up in you struggling to close your books and failing to justify transactions to the tax departments and FASB. This also hampers your CAM reconciliation work and year-end accounting work when you have to collect all asset maintenance, purchase, and renewal data from different departments and compile them at the last moment. 


  1. Repetitive problems in reporting your asset conditions 

 

A proper business process and property manager always ensure that they send periodic reminders about the conditions of the assets to start preventive maintenance and then react after major breakdowns. These are repetitive tasks that need to have every month or so; human errors can very well miss out on these minor reminders and fail to meet renewal deadlines, and get trapped with many unhappy tenants.  


  1. Lack of data analysis on asset status 

 

Does your asset management system include data analysis of your assets from the data collected over the years of usage? If not, you might already be losing out on a lot of money. Say some of your assets are too old for them to be renewed; upgrading to the latest equipment would be more cost-saving. But if you do not have an asset manager or software in place, you never find these insights to save money.  


  1. Energy consumption and non-sustainable assets 

 

There might be many appliances and assets in your buildings that can be major energy-consuming areas. They can make your power bills go up at a subsequent rate and also adversely affect the environment and make your properties less sustainable in general. You need to have a plan to optimize the energy usage of your assets to get the correct value for every penny that you invest.  

Why should you automate asset management? 

With the right selection of technology in project management, your team can simply automate the asset management process and get done with this aspect of the business. When you automate the asset management work, you gain a lot. Take a closer look, 

 

  • Stay updated about the condition of your assets, even from remote locations. 

  • Receive periodic reminders from your software about asset renewals, repairs, subscriptions, insurance premium deadlines, and more. This will help you never miss out on deadlines and face penalties or hamper your relations with the tenants.  

  • An asset management software also provides insights into your assets and helps in your budgeting and forecasting plans. 

  • You can also start preventive maintenance work for your assets when you plan ahead rather than taking a reactive approach.  

  • You can detect which assets have the maximum energy consumption and get them fixed or repaired to make your projects more sustainable and eco-friendly. 

  • Updating your asset status on your property management software dashboard will also let tenants have access to the details, and they can voice their problems at any point in time. 

  • Saves time and cost of hiring full-time asset managers for each property and pays them when the work can be done with the right technology selection.  

  • Check your asset performance to better your future investments. 

Finding the correct asset management software 

There are many asset management software out there in the market; you need to find out which one works best for your company and your business goals. You can talk to our tech experts at the Assetsoft team to guide you better in choosing the right asset management software for your business. Our team can help you with a better selection of technology in project management. We provide end-to-end integration, staff training, and offshore support for as long as you need. So, what’s stopping you from calling us? 

 

Talk to us today for more.  

Assetsoft

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