With the current surge of demands for sophisticated and more secured housing needs, the real estate industry has grown to be the major cash house for investors. Coming with this surge is the need for best practices that are sustainable to keep these properties in good shape and keep proceeds for a long period of time.
We’ll be addressing the question of whether real estate facility management is a necessity or a choice. In arriving at an answer, we’ll define the subject matter “real estate facility management”, look at its advantages and its attendant challenges in execution and proffer likely insights to a more efficient operation.
DEFINITION OF TERMS
What is Real Estate?
Real Estate is a general term that covers property made up of land and structures on it, natural resources beneath it and cultivated or uncultivated vegetation on it. But for purposes of this, we will limit the definition to cover land and the immovable buildings on it.
What is Facility Management?
Facility management covers the provision of expert services, which ensures the maintenance of facilities to a pre-determined standard, such that it’s optimal usage is sustained over a period of time.
What is Real Estate Facility Management?
A combined reading of the two definitions above will mean that “it is the provision of expert services which ensures the continuous planning, organizing, directing, controlling and maintenance of real estate facilities and services to a pre-determined standard, such that it’s optimal usage is sustained over a period of time.
Real Estate Facility management includes service requests, preventive and corrective maintenance, inventory, inspections, facility condition assessments, and space management.
IS REAL ESTATE FACILITY MANAGEMENT A NECESSITY OR A CHOICE?
Just as the human body needs management through the consumption of healthy foods, exercises, regular medical checkups etc. to boost it and keep up optimal performance, real estate facility management is key to providing and sustaining the support services needed to keep real estate facilities in top functionality. By so doing, the life span of these facilities is optimized and value sustained.
To further buttress the fact that real estate facility management is a necessity, below are the advantages;
- It will increase the lifespan of the facilities.
- The facilities will continue to deliver value.
- It will save the owner and users the resources that will be expended in acquiring new ones.
- It will reduce accidents caused by facility failure.
- It will increase the value of the property itself.
- It will keep building equipment and infrastructure functional and efficient.
- It will expose faulty facilities for change and upgrade.
- It will reduce operating costs and increase productivity.
- It will lead to a high demand of services which will translate to more profits.
Read More: SERVICE TENANCY AND STATUTORY NOTICES
CHALLENGES OF REAL ESTATE FACILITY MANAGEMENT
The likely challenges of real estate facility management includes but are not limited to;
- The cost of facility management in the real estate sector is on the increase as demands are high.
- The expertise needed is not readily available. There are few experts and fewer agencies rendering the services
- Usage culture amongst Nigerians is very poor. Especially as it relates to properties under lease. You find out that tenants most times have poor usage culture, if it is the duty of the Landlord to maintain the facilities and services.
- The world is evolving and innovations in technology is the talk of the day. While it is getting to the real estate sector it is slow unlike in other sectors like Telecom, Health care etc.
- There is regulatory lapse in the real estate sector. Most buildings are given approval for occupation without inquiry as to the nature and quality of facilities in use.
PROSPECTS OF REAL ESTATE FACILITY MANAGEMENT
- Integration of technology to real estate facility management.
- Promulgation of regulations to specifically monitor real estate facility management and compliance
- A body should be setup to from time to time carry out facility assessment in buildings.
- More individuals and agencies need to be encouraged to take up interest in real estate facility management, this will aid to meet up demands and reduce cost.
- There should be sensitization on best practices to improve usage culture of Nigerians.
The importance of Real Estate Facility Management cannot be overemphasized. It is an aspect of real estate that will determine how much value is placed on your properties. So for you to continue reaping the benefits of your real estate investment, then you need to ensure that adequate measures are put in place to take care of real estate facility management. Indeed real estate facility management is a necessity and not a choice.
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