Property Asset Management: Strategies for Occupancy Rate Improvement

This report offers an analysis of property asset management, focusing on strategies to enhance a company's competitive position in the Singapore market. It emphasizes the importance of asset management in tracking and managing a company's inventory, particularly in real estate. The report conducts a market analysis, including a SWOT analysis, to identify strengths, weaknesses, opportunities, and threats. It evaluates the company's current performance, focusing on improving occupancy rates and addressing challenges such as infrastructure limitations and competition from public housing. The report recommends specific actions, such as understanding customer needs, leveraging technology, and implementing promotional strategies to increase sales and market share. Risk assessment, including tenant insolvency and unexpected maintenance, is also discussed. The conclusion highlights the necessity of property asset management for effective asset management and sustained success in the competitive market.

Running Head: Property Asset Management 0
PROPERTY ASSET MANAGEMENT
7/19/2018

Property Asset Management 1
EXECUTIVE SUMMARY
This report reflects on how an Asset Management process helps an organization in gaining its
competitive position in the market. It provides the company the knowledge on the organizations
inventory without checking manually. This is very important in every organization as it keeps
continuous track on the assets of the company. In this report, company is taking measures for
improving the occupancy rates of its property in the Singapore. The company has a strong brand
image in the Singapore market but there are many areas where the company can improve and
enhance its goodwill and market share.

Property Asset Management 2
Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................1
INTRODUCTION.......................................................................................................................................3
METHODOLOGY......................................................................................................................................3
MARKET ANALYSIS...............................................................................................................................4
EVALUATION...........................................................................................................................................5
Appendices..................................................................................................................................................6
Conclusion...................................................................................................................................................7
REFERENCES............................................................................................................................................8

Property Asset Management 3
INTRODUCTION
Property Asset Management
Property asset management is the method of increasing the assets of organizations to provide
maximum return to its stakeholders. It performs the important task of keeping the track on the
assets of the company and involves recovery of the assets. It helps in managing the assets from
different localities in an efficient manner. Property asset management manages the rates of the
amortization. Regular valuation will help the company in ensuring that the company’s financial
statements are accurate. It helps an organization in understanding the asset capabilities and
results in efficient operation. Property Asset Management helps in managing the risk in
organizations. Property Asset management lowers the risk of theft in the organization. Proper
valuation of the asset of the company helps in maximizing the return for the company without
the loss of items in the process (AERworldwide, 2016).
METHODOLOGY
Descriptive research is conducted in the report of Property Asset Management. The data used for
the research process are primary and secondary but in this research secondary data is used.

Property Asset Management 4
MARKET ANALYSIS
Property is facing the risk of damage and high vacancy in Singapore. For this, the company has
to improve its process of selling properties in the Singapore and increase its occupancy rates. The
company will conduct SWOT analysis of the organization. It will help the company in
identifying the asset’s competitive advantage.
Strength: It identifies the features of the property and its benefit to users. This help the company
in identifying how its location, amenities, operational management, designs are providing
benefits to its users. The company has a good image in the Singapore market because of its
diverse operations in this sector. The company has maintained good communication with its
clients. This internal strength will help the company in earning more profits in the end (Cushman
& Wakefield, 2016).
Weakness: The infrastructure of the company is one of its biggest weaknesses. This will lower
down the growth of the company. The property of the organization is located in the outskirts of
the Singapore, and people want to live in good locality. The company has to raise funds to
employ new employees to increase its growth. The major weakness for the company is the
shortage of money, as its tenants not pay their rent on time (rent Manager, 2013).
Opportunities: As the economic downturn in the Singapore forced many people in the country to
leave their home and forced them for renting. The company took the advantage of this
opportunity and raise prices of the properties. The company expands its properties in different
locations. The company also focuses on the market of low income people. The property owners
should increase their property sizes to cater the offices, as they require big space for their
operation. Please refer to appendix-I for the outlook of property in Singapore.
Threats: Public housing is an affordable housing possessed by the Government is giving big
competition to the organization. They are cheaper than the properties of the company. Increase in
the interest rates, fluctuation in the foreign exchange and its tenant’s insolvency and bankruptcy
are some of the reasons of threat for the company (MorningStar, 2017).

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EVALUATION
The SWOT Analysis helps the company in evaluating its strength, weakness, threat and the
opportunities of the company to increase its growth in the real estate sector and to earn more
profits for the sustainability of the organizations. It is been evaluated that the scope of
improvement is very high for the company and the areas are:
Understanding the customer needs
 The company should focus on increase in use of technology. It should focus on more
innovative methods to maintain its goodwill and boosting its sales in the country.
 Proper and developed infrastructure is the key area of focus of the organization. They
should understand the requirement and the needs of the customer in order to compete
with its competitors.
 The company should focus on increasing its occupancy rates and it is possible by offering
concessions to the tenants in order to be competitive in the property market.
 Proper security and the safety measures must be there in the property of the company so
that the residents feel secure about their lives and live without the fear of theft.
Focus on Increasing the occupancy rate:
 The owners must have the complete and the proper knowledge about the prevailing
market and economic conditions in Singapore and they should fix the prices of their
property according to the current market conditions. As shown in the Appendices
 Proper training should be provided to the employees of the company. These employees
should be provided incentives if they are succeeded in selling the company’s asset to the
targeted customers. By providing incentives employees work with more motivation and
dedication towards their work which will boost the company’s sales (TechTarget
Network, 2018).
 The company should use promotional methods in creating awareness about the
availability of the property. These promotions will highlight the property infrastructure,
its schemes and benefits to the customers on purchasing the property. The company
should carry these promotional activities in the crowded area of the Singapore to create
the brand awareness and visibility of the organization (Kreyon, 2015).
 As the expenses tends to increase time by time so it is important for the property owners
to change the price of maintenance, security costs, management costs and the price of its
properties in order to cope with the current market situations. The real estate developers
should focus on the digital marketing.

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 The company should focus on the size of the property according to the commercial users,
as they require the big space for their operations, so the company should keep the rent
accordingly. It should also promote some retailers to open their store in the property
premises. This will fulfill the customer’s day-to-day requirements (MASHVISOR, 2018).
Risk Assessment:
Tenant insolvency: The Company should check its tenant capacity to pay in order to avoid
delayed payment from them (Globalriskconsult, 2108).
Unexpected maintenance: It is the reasons of concern for the company, as they have to pay huge
amount to recover that cost. This will reduce the growth and the profits of the organizations.
APPENDICES
Appendix- I
Property outlook in Singapore
(Source: TheonlineCitizen, 2017)
CONCLUSION

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It is concluded from this report that the property asset management is necessary for managing the
assets of the company. It helps in increasing the company’s image in the minds of customers.
This report has concluded that the property owners has good image in the markets of Singapore
but there is a scope for improvement for them in order to increase their demand and sales in the
Singapore. The property owners focus on improving the company’s infrastructure in order to
create its goodwill and compete with its competitors. The owners of the organization have
maintained good communication with its consumers, which helps in increasing the goodwill of
the company. The organization has to update their technology in order to cope with the current
market tends prevailing in the market. The company has used various promotional measures to
increase its awareness and sales in the Singapore market. This is concluded that the effective
measures have been taken by the company to sustain in the competitive market.

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REFERENCES
AERworldwide. (2016) Top ten reasons why asset management is important. [online] Available
from: https://www.aerworldwide.com/top-ten-reasons-why-asset-management-is-important/
[Accessed 20/07/2018]
Cushman & Wakefield. (2016) The SWOT Analysis- Property Management. [online] Available
from: http://blog.cushwake.com/americas/the-swot-analysis.html [Accessed 20/07/2018]
Globalriskconsult. (2018) How Real Estate Developers manage their risk. [online] Available
from: https://www.globalriskconsult.com/article-6-real-estate.php [Accessed 20/07/2018]
Kreyon. (2015) 10 Key Digitization Benefits for Asset Management. [online] Available from:
https://www.kreyonsystems.com/Blog/10-key-digitisation-benefits-for-asset-management/
[Accessed 20/07/2018]
MASHVISOR. (2018) The Best Tips to boost your Occupancy Rate for Better Tenant Retention.
[online] Available from: https://www.mashvisor.com/blog/occupancy-rate-tenant-retention/
[Accessed 20/07/2018]
Morningstar. (2017) Challenges in Asset Management. [online] Available from:
https://www.morningstar.com/blog/2017/09/21/challenges-in-asset-.html [Accessed 20/07/2018]
Rent Manager. (2013) Biggest Challenges for Property Managers. And how to Overcome them.
[online] Available from: https://www.rentmanager.com/biggest-challenges-for-property-
managers-and-how-to-overcome-them/ [Accessed 20/07/2018]
TechTarget Network. (2018) The importance of Asset Management. [online] Available from:
https://searchnetworking.techtarget.com/feature/The-importance-of-asset-management
[Accessed 20/07/2018]
Theonlinecitizen. (2017) 4 things to note for property outlook 2017-2018. [online] Available
from: https://www.theonlinecitizen.com/2017/08/02/4-things-to-note-for-property-outlook-2017-
2018/ [Accessed 20/07/2018]