Why outsourcing technical asset management can be worthwhile

Strategic consulting services with technical expertiseIn addition to the planning and technical know-how of architects and engineers, the service provider also needs the expertise of experienced real estate economists. For the owner will only benefit from this service package if there is a close combination of technical knowledge, a pronounced commercial understanding paired with implementation competence. In this way, external technical asset management positions itself as an interface between the responsible property management, other technical partners and even facility management. "We see technical asset management primarily as a strategic economic consultancy service, coupled with planning and technical expertise, which is intended to offer owners of existing portfolios substantial added value," explains Holger Wille, Managing Director of REC Partners GmbH, which has now taken over the technical asset management for complete existing portfolios of one of its clients.

Extraordinarily complex service packageThe range of tasks extends from the preparation of the annual technical budget, the ongoing controlling of all technical measures, the coordination of the technical partners, to participation in the maintenance and management planning of the properties, if necessary, to support in the sales process. This includes, among other things, the definition and coordination of capex and TI measures as well as the corresponding cost, schedule and quality controls, regular reporting, the preparation of decision documents or the follow-up of the updating of building documentation. And all this in close cooperation with the client's existing property, regional and asset management. The basis for taking over the technical asset management with its manifold tasks is a one-time in-depth familiarisation and preparation phase. The first step is to draw up a list of expected capital expenditure for capex measures based on any technical due diligence that may be available. It also includes familiarisation with the building conditions on the basis of existing documentation and an initial inspection to get to know the properties. Furthermore, the obligations arising from the tenancy agreements with regard to maintenance and repair work are examined.

Common understanding of economic efficiencyIn the past, it was common practice for asset managers on the owner side to award contracts, for example for the technical assessment, maintenance or repair of individual properties, to a technical service provider. "However, this often leads to misunderstandings, because business people and technicians assess the corresponding costs quite differently because they each pursue different interests," Holger Wille knows. "Technicians may be able to quantify the costs of individual measures, but they do not have the owner's overall portfolio and strategic planning in mind. But this is exactly what outsourcing technical asset management to an external service company must be about if the processes are to be made faster and more efficient."

The human factorThe outsourcing of technical asset management requires a high degree of entrepreneurial thinking from the corresponding real estate service provider. The people acting there must have a self-image as entrepreneurs, technicians and fund managers in one person. Once these skills have been developed, property owners will benefit from the services in the long term. "In order to be able to solve this task as conflict-free and efficiently as possible, the actors involved on both sides must, however, also fit together on a human level," adds Wille. "After all, we are talking about long-term projects in the portfolio based on a long-term strategy that both partners pursue together."

In this context, technical asset management is to be understood as the assumption of all strategic and planning tasks relating to the technical area and their implementation for a portfolio of residential or commercial properties in close coordination with and in the interest of the portfolio owner. Outsourcing this extremely complex task to an external service provider requires a high degree of trust on the part of the client and a partnership at eye level if it is to succeed. The advantages for the client are obvious: he is significantly relieved of the burden of budget planning and the awarding of maintenance and revitalisation measures and has a complete overview of planned and ongoing projects at all times, while at the same time enjoying maximum cost transparency and always having up-to-date data. Strategic consulting services with technical expertiseIn addition to the planning and technical know-how of architects and engineers, the service provider also needs the expertise of experienced real estate economists. For the owner will only benefit from this service package if there is a close combination of technical knowledge, a pronounced commercial understanding paired with implementation competence. In this way, external technical asset management positions itself as an interface between the responsible property management, other technical partners and even facility management. "We see technical asset management primarily as a strategic economic consultancy service, coupled with planning and technical expertise, which is intended to offer owners of existing portfolios substantial added value," explains Holger Wille, Managing Director of REC Partners GmbH, which has now taken over the technical asset management for complete existing portfolios of one of its clients. Extraordinarily complex service packageThe range of tasks extends from the preparation of the annual technical budget, the ongoing controlling of all technical measures, the coordination of the technical partners, to participation in the maintenance and management planning of the properties, if necessary, to support in the sales process. This includes, among other things, the definition and coordination of capex and TI measures as well as the corresponding cost, schedule and quality controls, regular reporting, the preparation of decision documents or the follow-up of the updating of building documentation. And all this in close cooperation with the client's existing property, regional and asset management. The basis for taking over the technical asset management with its manifold tasks is a one-time in-depth familiarisation and preparation phase. The first step is to draw up a list of expected capital expenditure for capex measures based on any technical due diligence that may be available. It also includes familiarisation with the building conditions on the basis of existing documentation and an initial inspection to get to know the properties. Furthermore, the obligations arising from the tenancy agreements with regard to maintenance and repair work are examined. Common understanding of economic efficiencyIn the past, it was common practice for asset managers on the owner side to award contracts, for example for the technical assessment, maintenance or repair of individual properties, to a technical service provider. "However, this often leads to misunderstandings, because business people and technicians assess the corresponding costs quite differently because they each pursue different interests," Holger Wille knows. "Technicians may be able to quantify the costs of individual measures, but they do not have the owner's overall portfolio and strategic planning in mind. But this is exactly what outsourcing technical asset management to an external service company must be about if the processes are to be made faster and more efficient." The human factorThe outsourcing of technical asset management requires a high degree of entrepreneurial thinking from the corresponding real estate service provider. The people acting there must have a self-image as entrepreneurs, technicians and fund managers in one person. Once these skills have been developed, property owners will benefit from the services in the long term. "In order to be able to solve this task as conflict-free and efficiently as possible, the actors involved on both sides must, however, also fit together on a human level," adds Wille. "After all, we are talking about long-term projects in the portfolio based on a long-term strategy that both partners pursue together."