Sound maintenance strategies for asset preservation: IREM member shares her company's insights

Citation metadata

Author: Susan Sgrignoli
Date: January-February 2009
From: Journal of Property Management(Vol. 74, Issue 1)
Publisher: Institute of Real Estate Management
Document Type: Article
Length: 1,758 words
Article Preview :

THE GOAL OF GOOD MAINTENANCE IS TO MINIMIZE THE IMPACT OF AGING OF BUILDINGS AND EQUIPMENT ON THE BOTTOM LINE, AND TO PROVIDE THE MOST EFFECTIVE USE OF THE PROPERTY AT THE LOWEST COST CONSISTENT WITH THE OWNER'S SHORT--AND LONG-TERM GOALS. As the property manager, you are a steward of these assets.

A solid maintenance program begins with the owner's understanding, commitment, support and involvement in a structured plan. Maintenance must be kept in the forefront of the operating team's consciousness. The mission statement, or the standard, should be the driving force for keeping the team on course to deliver world-class service to its customers, including owners, customers, tenants and vendors. It is the responsibility of property managers to help the front-line team keep the standard--and its relationship to their owners' businesses--in perspective. This perspective enables the management and front-line team to appreciate the priorities the owner has set forth, which may lessen their frustration when work cannot be scheduled as planned.

Begin developing your plan with an assessment of the productivity of the building you are managing. You may use one or more of the following to begin your assessment.

1. STRATEGIC MEASURES

Strategic measures can be derived from measuring maintenance costs to net operating income (NOI), maintenance costs to asset value or equipment replacement costs per square foot. Process/safety measures that impact profitability are assessed as U.S. Occupational Safety and Health Administration (OSHA) injuries per man-hours, utility expense per square foot; kilowatt hours per occupied square foot per year. Because such measures impact the owner's profitably and/or return on investment, you may have used them in developing your CPM management plan. You can reference benchmarking studies like the Income/Expense Analysis: Office Buildings from IREM or the Dollars and Cents of Shopping Centers from the Urban Land Institute (ULI) to obtain a sense of what is an average measure for your property type.

2. INTERNAL MEASURES

Internal measures are often considered the operating standards of the owner and can be derived from the following: 1) Reviewing onsite facility conditions (and comparing them to the standard); 2) Tenant satisfaction--including an evaluation of response time to urgent work requests; 3) Understanding the level of deferred capital investment; 4) Measuring complaint levels and the backlogs of work. At my organization, these standards are audited by a third party at random times of the year. Results are reported back to the team and deficiencies are addressed. Tenant satisfaction is usually measured by a third-party survey which gives the property teams feedback to help them improve.

3. EQUIPMENT RELIABILITY

The reliability of your equipment can be measured by calculating average equipment downtime, time between equipment failures,...

Main content

Source Citation

Source Citation
Sgrignoli, Susan. "Sound maintenance strategies for asset preservation: IREM member shares her company's insights." Journal of Property Management, vol. 74, no. 1, Jan.-Feb. 2009, p. 30+. Accessed 14 Aug. 2020.
  

Gale Document Number: GALE|A193045900