When talking about management services, their importance is often overlooked. Think about an inhabited building. There are several activities that need to be carried out in order to administer it: expense reporting, income collection and the provision of essential services for the property.
The latter are specifically the set of activities from cleaning to concierge services and facility management. The management of these processes has a financial relevance in its own small way, affecting the market value of the property and the expenses that the owner and tenants have to bear.
Considering a larger management dimension, it is therefore easy to see how Management Services are vital to managing real estate assets to make them profitable and productive.
In the case of assets owned by banks, insurance companies, foundations and institutional investors, management services are of strategic importance and can make a difference. In practice, a large part of the success or failure of a real estate investment is through its management.
Anyone who has operated in the long-term real estate investment market can only get a good return with careful managerial management in every respect. Obviously, the larger the assets, the more management effort is required. For example, suppose you own a large number of residential, industrial or commercial properties. In that case, you need to take these aspects into account even more than if you manage a small number of assets.
Real estate investment is certainly a relatively reliable way of securing capital without facing the risks of financial market fluctuations. However, any assets can risk being dissipated without good stewardship and become a high and dangerous cost.
It is precisely for this purpose that AKNO Management Services come into play, thanks to forty years of experience in the construction industry.
The AKNO Management Services division is made up of a team with the best skills in the industry, which offers its services to other economic entities thanks to the expertise gained over time in real estate management.
See below in detail the activities that contribute to the proper management of a real estate asset.
Real estate asset management, what does it consist of?
The financial management of real estate makes it possible to avoid wasting assets by optimising their yield through a series of actions. From energy efficiency to the periodic overhaul of installations to the management of rents, property managers’ task is very complex.
Performing real estate management requires professionalism in every area because while it is necessary to manage the collection of rents, other factors that are apparently less easy to perceive are just as important. This is the case with managing human relations issues and cyclical events that can create problems and need to be anticipated.
At the same time, the maintenance of facilities and the planning of overhauls and renewals over time are also important actions to prevent problems.
Let us, therefore, take a detailed look at the work areas in which management services, such as those of AKNO, have an impact.
Management services: how to optimise management costs
The costs of a property can be divided into several categories:
- Cleaning costs
- Operating and maintenance costs
- Fiscal expenses
- Extraordinary maintenance and renovation costs
- Management of unforeseen events
Although many of these costs are predictable, there is a variable part, such as traumatic events and breakdowns that cannot be predicted, which is more challenging to manage. Each category, therefore, contributes significantly to the positive or negative balance of the property business. For this reason, professional cost management is essential to be prepared for any eventuality and to be in a position to make a profit.
Providing an efficient service is the mission of the Management Services provider while protecting the owner’s interests. In practical terms, optimising management costs means acting on the parameters that contribute to costs. For example, looking for an economical supplier of heating fuel, looking for a cleaning company that offers an affordable subscription to its services, or most importantly, lowering costs by making buildings energy efficient.
Sustainable building design, in a world facing ecological transition, helps have a smaller impact on the environment and allows for lower energy costs. Optimising these costs by focusing on high-efficiency buildings is a matter close to AKNO’s heart. This is the mission of one of our divisions, AKNO Energy, which deals precisely with these issues, which are increasingly at the centre of the building sector (think of the success of the current government incentives for energy efficiency in homes).
Therefore, in the context of proper property management the subject of energy efficiency cannot be overlooked, obviously with particular attention to the cost/benefit ratio.
Management services: how to manage ancillary services
Depending on the type of property to be managed within the estate, one or more ancillary services must be taken care of. This factor, if well managed, can lead to an increase in the value of the property and a lower cost of routine maintenance.
An example of an ancillary service is the concierge service. Having a concierge or concierge service makes a residential property more attractive, manned and secure. At the same time, the presence of a ‘caretaker’ makes it possible to keep under control any situations of breakdown or accidents of various kinds. We are, therefore, indeed talking about an additional service that justifies higher rents and can create added value at every stage of management. However, it is essential to choose qualified and professional staff to ensure that this additional service works at its best. Like any additional service, if poorly managed, it can become a boomerang for your business, turning into a cost or complicating the property management phase. Here too, before you get down to business, the presence of a Management Service can make a real difference.
AKNO Management Services, full service and continuous support
AKNO Management Services is the management services division of AKNO.
We offer our professionalism to private investors, institutional investors, real estate funds, insurance companies, banks and, in general, to any entity that has to administer and manage significant real estate assets.
With its management services, AKNO brings its know-how to the table, acquired over time through the management of the AKNO Group’s real estate assets.
AKNO Management Services provides 360-degree management, offering continuous assistance for all eventualities. Our management services include maintenance, emergency intervention, invoicing services, rent collection, payment control, facility management, reminders and all obligations related to lease relationships.