When it comes to estimating property costs, most people are aware only of the initial price tag, however, experienced owners will tell you that the full figure is actually much larger due to ongoing maintenance costs. In fact, expenses accumulated over the years can be unforeseen and substantial.

This list of expense categories is by no means exhaustive, but it provides an overview of the factors that need to be taken into account when estimating the budget for proactive asset maintenance:

Amortisation and maintenance costs

Ageing properties tend to suffer from more frequent breakdowns of essential systems, necessitating emergency repairs and occasional damage control. Installing smart networking equipment, which monitors and manages the building in real time, provides visibility to deal with issues before they arise.

Security-related expenses

Leaving a high-value asset unguarded makes it an attractive target for theft or vandalism. The most common response of business owners is to hire security personnel and install cameras in key areas, but this solution doesn’t come cheaply. An alternative approach is to utilise a cloud-based asset monitoring solution and remotely supervise multiple locations at the same time, sending the security team to intervene based on any irregularities registered by the system.

Waste of space and equipment

If an asset isn’t utilised to full capacity, its owner is inadvertently wasting money. Many office buildings have rooms that aren't in use, often with valuable tools inside. It is in the owner’s best interest to keep a precise inventory of actual rates of use for all resources and to search for better ways to optimise workload. This can be achieved through organising regular delivery of data reports indicating which portions of the building are underused in certain intervals, or which equipment could be reassigned to different individuals or teams.

Heating and energy bills

Big buildings guzzle electricity in enormous quantities, which is a particularly significant problem for business facilities that support energy-intensive processes. Even in residential buildings, owners are still liable for areas not directly used by tenants (i.e. staircases, storage rooms etc). It is imperative to rationalise energy expenditure, especially during the winter months when a business or residential space needs to be heated when in active use. Automating lights and the HVAC system to switch off when a room is not used is one way to save on energy bills without sacrificing comfort or functionality.

The first step towards effective asset management is obviously to discover the true cost of ownership, before identifying areas where meaningful savings are possible.