Necessity and Ways of Developing Property Management into Asset Management

Property assets, namely real estate, are an important part of world wealth. Real estate accounts for 40% ~ 50% of the total wealth, and 1/3 of the total assets in the book value of Fortune 500 companies is real estate. Real estate is called the business in the world. The construction, sale and lease of real estate and its benefits to owners account for about 15% of the gross domestic product of rich countries. Real estate management is an important part of enterprise management, including non-profit organizations, but the level of real estate management in Chinese enterprises is very low, and the concept of real estate management has not yet formed.

In developing China, the quantity and value of real estate will increase rapidly. Who will manage these huge assets? Who will make huge management profits? In Japan, most real estate and commercial real estate are not managed by landowners, but by professional real estate management companies. At present, most foreign-funded enterprises in China employ professional management companies as management consultants to meet the needs of maintaining and increasing the value of property through property planning. With the concept of domestic property owners rapidly connecting with the international community, many prescient business management companies, logistics management units and real estate developers are actively trying to manage property assets, especially commercial real estate, in order to share this huge cake.

The fundamental reason of modern property management lies in the comprehensiveness and complexity of modern building management. The diversification of property rights, the complexity of neighboring relations, the difference of people's needs, the desire for wealth and the pursuit of quality of life all put forward strong requirements for professional division of labor, and the professional organization of property management-property management company came into being.

If the property management company only provides property services, it can meet the general needs of life and work, but it is far from the investment purpose of property assets. For property management companies, if only property management fees are charged, the operating income is limited, the labor cost is getting higher and higher, and the profit space is getting thinner and thinner; The scale of rental income of commercial properties is often ten times or even dozens of times that of property management fees. Whether it is sharing with the owners or giving them a fixed return, the profit space can be expanded tenfold or even hundredfold as long as it is managed efficiently.

General property management companies only put themselves in the position of "nanny" and "housekeeper", failing to guide owners to establish the concept of overall asset management, and their energy and financial resources are insufficient to serve owners and tenants.

Most owners haven't established the concept of asset management, and they don't realize the benefits of overall asset management, let alone pay for asset preservation and appreciation investment. The short-term and uncertainty of the property service contract also makes the management behavior of the property management company prone to short-term behavior. Most property management companies have a short growth cycle and a large gap in business capabilities.

In the operation of profitable property, because some owners have not yet realized the responsibility and obligation of investing in property, they pay more attention to the acquisition of real interests and do not take active actions to operate personal industries. Property management companies stand by and watch the asset owners' asset management and management. Once the value of assets depreciates, people question the operation mode of property-based shopping malls, property-based hotels and property-based apartments.

Both the owner and the property management company should clearly realize that the owner should consider the preservation and appreciation of the owner's assets and the operation and management of the assets together with the property management company, and the property management company should pay more attention to the interaction with the owner, guide the owner from a professional perspective, and make itself a real asset manager.

Excellent property asset management can not only make up for the intangible loss and renewal of assets, but also maintain and improve the investment income. Excellent asset management can only be provided by excellent asset management companies.

Property management companies have the inherent advantage of the shortest distance from owners and tenants. If they add the ability of asset management, they can become owners' partners in asset management. In the United States, property managers are divided into three categories: one is the building manager, who is responsible for the daily management of the building (which can be understood as the daily property service provider); The second is the property manager, who is responsible for contacting the agent and renting the property (which can be understood as the operator who manages the owner's existing assets); The third category is the asset manager, who is responsible for property strategic development planning, market research and complete asset management planning and operation.

Property management companies should actively develop in the direction of management, educate owners and improve their management ability in order to occupy a favorable position in the huge profits of property asset management in the future.

Informatization is the most effective means to help traditional property management companies to develop into standardization, refinement, scale and operation. The core of informatization is software, and the software applied in domestic property management industry has developed to the fifth generation.

The main function of the first generation software is charging, which is completely bookkeeping, replacing manual bookkeeping, and has nothing to do with business processes;

The second generation software adds business functions and processes such as engineering, customer service, security and fire protection, cleaning and greening, which makes the basic business processes of property management companies run in the software and realize standardization;

The third generation software adds the management function of enterprise group, which can monitor the business of each branch and management office and effectively help the large-scale development of property management companies;

The fourth generation software adds a lot of planning, budgeting, measurement, statistical analysis, performance appraisal and decision support functions to help property management companies achieve refined and digital management.

The latest development direction is commercialization, and the initiator is Shanghai Yin Wei Software. In a large number of commercial property informatization practices, such as Shanghai Meiluo City, Shanghai Stock Exchange Building, Beijing Yintai Center, Workers Stadium, etc. They gradually divided the informationization of commercial property management into five parts: commercial asset management, investment lease management, customer service management, property management and financial management.

Among them, the management of operating assets is easily overlooked, but it is very important. Operating assets, including offices, shops, apartments, warehouses, parking spaces, advertising spaces, factories, equipment, vehicles and other assets that can be rented to obtain income, are the most important capital for the profit of commercial real estate. Good software can help managers grasp the detailed information, possession, use and charging status of various operating assets anytime and anywhere, and make a comprehensive statistical analysis of asset distribution, use efficiency, rent level and timely collection rate, including the comparison with the actual figures of last year and last month and the comparison with the budget. Through the complete recording, statistical analysis and strict processing of information, the use efficiency of operating assets can be effectively improved. After using the software, the asset utilization rate, rent level and timely collection rate have been improved year after year, and it has become one of the commercial real estates with operating benefits in Xujiahui, the most prosperous business district in Shanghai.

Investment lease management is also the core of commercial real estate management. The software can completely record the tenant information, contract information and customer service information in different stages such as planning, development, sales, leasing, customer service and property management, and enjoy them in various departments according to their authority. When new buildings attract investment, they can quickly publicize to the accumulated tenants and speed up the investment. The software can also comprehensively analyze the tenant value according to the information such as on-time payment rate and illegal operation, select high-quality tenants among the tenants that have accumulated continuously, and eliminate poor-quality tenants, thus improving the occupancy rate and raising the rent level. In the investment promotion of new projects, with complete and high-quality tenant information, the investment promotion work can be completed quickly.

Other functions of the software, such as business sharing management, membership card management, owner return management, etc. , covering all aspects of commercial real estate, effectively regulating the management of commercial real estate, and obtaining operating profits to a certain extent.

As the industry becomes more and more mature, property management companies that fail to achieve standardization, refinement and scale will be eliminated, and property management companies that fail to operate will not be able to continue to make profits.