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Efficiencies achieved through outsourcing
Date published 1 January 2009
"By outsourcing specific services and keeping control of other strategic functions, the property owner can, in fact, manage his building at a tighter cost and with greater efficiency than if he managed it himself."
This is according to MD of Broll Property Management, Malcolm Horne. He says property owners are now more actively managing income streams to ensure profitability of assets as well as return to investors. "The economy has brought a shift in the market. Owners need to take tighter control of core business and are increasingly taking on the traditional role of a true asset manager and not that of a senior property manager, " says Horne. "For asset management to make sense and for decisions to be effective, owners need the support of solid property administration. The "back office" administration function takes on a more important role with increased dependence on its efficiency. Many property owners wish to control specific strategic aspects of their business without having to attend to the daily administrative functions of property management." This has resulted in a new generation of outsourced property management. Traditionally, it has been an all-or-nothing approach. Owners either outsourced the entire property management service, or did everything themselves."
Horne says it is hardly the case anymore. "There are now options between these two polarities. In meeting the property owner's changing requirements, a "menu" of outsourced services from which owners can chose services that are applicable to their specific property needs, is proving to be more relevant."
In the case of Broll, the services on the menu include anything from accounting, utilities management, credit control, leasing, human resources, payment of creditors, receipting, property administration, lease renewal negotion, operational management, project management and tenant installation, to property management software systems.
"Property owners can focus on growing their business rather than runing their office," Horne continues. "The management menu is flexible and provides for a range of services that is suitable for the individual property owner; allowing them to concentrate on more strategic aspects of the business."
Author: Journal of Facilities Management
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