We here at Bilt recently launched our new Asset Management consulting program, and today we’re excited to share some details about it from our President, Jeff Gould. We sat down with him recently to ask some questions about what it is, how it works, and what clients can expect when they sign on.
Table of Contents
- What is Asset Management?
- What value does Asset Management offer property owners?
- How do you generate an effective asset management plan?
- Why should property owners trust that this service has value for them?
- Not convinced?
- More info about the program.
1. What is Asset Management? What aspects of property ownership does it cover?
Asset management covers the entire lifecycle of an asset, like a property or a building, including optimizing maintenance expenditures and maximizing its utility.
This kind of management is focused on the asset and its maintenance, not on the business you use it for. We leave the running of your core business up to you.
2. What value does asset management offer property owners? How are these benefits achieved?
Excellent asset management involves optimizing maintenance costs, which reduces expenditure. But it also ensures that your property is always in good condition, so maintenance issues don’t get in the way of your revenue generation.
So increased profit is the main benefit, but it also maintains the value of your property, making it more likely that you’ll get a surplus should you decide to sell.
3. Generally speaking, what questions do you ask about each property to generate an effective and efficient asset management plan?
We look at the financial details of the asset, the ways the asset is used, the most significant cost issues, and consider both tangible and intangible costs of maintenance failures.
If a room in a hotel is unusable due to maintenance failures, that’s tangible lost revenue. On the other hand, if you lease out a property and a maintenance failure impacts your tenants, they’ll still have to pay their rent, but there’s an intangible cost in terms of your reputation with them and the likelihood that they’ll renew their lease.
The goal is to identify high and low-risk maintenance failures, consider the likelihood of failure and the long-term consequences, and allocate maintenance costs accordingly.
4. Why should property owners trust that this service has value for them? What makes Bilt qualified to offer this kind of consultation?
Well, for starters, we want to show property owners how we can help so that they can decide for themselves; no trust required. We offer free consultation meetings with any owners wanting to see how we can help them.
Owners of individual, small properties might be more than capable of handling their asset management independently and won’t need our help. However, owners of multiple properties, or very large properties like hotels, are more likely to benefit from our insight and assistance.
As for qualifications, Bilt is unique in this industry, as we have extensive experience in every step of the construction process, as well as in renovations and property maintenance. Many of us also have experience in industrial settings where asset management is more common and are now carrying those insights into this new asset class.
5. What would you tell a property owner who is interested but not entirely convinced that asset management consulting is right for them? What other services can Bilt offer them?
We also offer property maintenance services they might find valuable, even if they’re not interested in asset management.
However, I’d encourage property owners to get in touch with us and go through a free consultation before making that judgement.