All entries for Tuesday 05 June 2012
June 05, 2012
Working on my PMA made me think of a lot of things concerning the real estate/property management as part of assets management. As I mentioned in a previous entry, there are some definitions of asset management that focus only on this category of management and consider literaly the word asset.
Many people choose to invest in asset management, and namely properties, as it can yield quite high returns. When it comes to companies it is a bit different. Companies have properties for two reason: operational and investement. And although the first may seem obvious, many companies fail to execute it appropriately resulting in high costs.
These costs involve not only maintenance costs as someone would think, but depriciation. And the second comes in mind of the finance department usually when it is the end of each fiscal year. For this reason, I firmly believe that companies need to reconsider their property portfolios regularly, so that they can utilize and exploite their assets to have the best returns possible.