As an asset manager overseeing a portfolio of real estate assets, you know that ROI depends on tenant retention, lease rates, taxes and maintenance costs - both operating and amortized. And ROI also depends on reducing the risk of the occurrence of catastrophic events; and if these events happen, it means being ready to produce an audit trail of maintenance history and personnel involved for insurance, legal and risk management purposes.
ProAct makes it easy for asset managers to monitor the proper maintenance, capital asset management and budgeting for their portfolios. This helps manage risks and improve ROI.
As an asset manager, you are concerned about two general categories of risk as shown below.
Health and safety - financial and reputation
Health and Safety Risks are reduced because the proper maintenance practices are performed and documented - and they are easily retrievable at a moment's notice. Test that with your current system to see if it is being used as intended.
- In the event of an audit or insurable event, can I prove that all regulatory, legal and recommended maintenance practices have been performed?
- What is the property manager doing to prevent major equipment failures?
- Is the work actually getting done and recorded with a cohesive chain of command?
- If a health or safety event related to maintenance occurs - will I be able to instantly retrieve accurate records to respond appropriately?
- Safety related maintenance standards change fast - are ours up to date? - can we respond quickly to changing laws and regulations?
- Does the existing system facilitate all of this cost-effectively, or is it time to change?
Operating and Capital Cost Risks
Annual capital replacement plans should be based on and aggregate of collected facts recorded over the years - and not on a year end survey. Many systems can provide this capability, but unless the system it is designed to match the real-life work flow, the information does not get recorded. The elegant design of ProAct facilitates easy record keeping and retrieval of all preventative and repair maintenance costs.
- Are all assets accounted for and included in a life cycle cost analysis?
- Do we have a fact backed capital replacement plan?
- Are all repairs and predictive maintenance activities being tracked to forecast replacement dates and costs?
- How do maintenance costs within the portfolio compare to benchmarks within the portfolio and other benchmarks?
- How do I know the systems are performing efficiently and without compromise to equipment life or tenant comfort?
- How do we identify assets that cost more to operate or maintain than they should, or are near their end of life?
- How is our energy budget prepared? Is it based on projection of facts or just historical usage? Can it be improved?