The property market is one such market where the need of strategic planning is an essential requirement for the profitable sustenance of business. With economy low downs, acquisitions, mergers and globalization being an order of the day and their impact being felt in the real estate market as well, the importance of appropriate tools management techniques cannot be debated in any way. This is where the SAP EAM (Enterprise Asset Management) (UD2) module comes in and integrates effective and easy-to-implement Real Estate Management components to bring about significant contributions to the bottom line.
Business Benefits - Real Estate Management(REM)
There are numerous benefits which are related to the SAP EAM Real Estate Management system. Some of them are listed below:
- It enhances the visibility of reliable and consistent data over numerous corporate real estate functions.
- It helps in bringing about a reduction in the number of applications, maintenance costs and support of infrastructural capabilities. This is made possible by the replacement of disorganized and unique systems, with a single and robust management system that has a set and standard format.
- Decreases the rate of vacancy and unoccupied stock-in-hand.
- It strengthens all project schedules and ensures timely deliveries, along with showcasing better means of allocating and managing budgets.
- It also improves upon personal efficiencies through the automation of manual and duplicate patterns or processes.
Disadvantages of not Incorporating Real Estate Management
Let’s look into some of the scenarios where the non-incorporation of SAP centric real estate management tools leads to poor financial implications.
- Underutilized properties result in revenue loss or an increase in the cost of occupancy.
- The absence of tactical/reactive lease administration may lead to missed opportunities and difficulties in meeting critical upcoming dates.
- High end maintenance costs, large repair receipts, and files of statutory non-compliances are a result of poor real estate management.
- Difficulties in taking care of new as well as old clients with inappropriate information.
How to Enhance Real Estate Portfolios
With all essential SAP modules in place, which help in enhancing the presence of real-estate companies in the market, users can look forward to reducing costs, compliance risks and consumption of energy. This in turn leads to a boost in the real estate portfolio. SAP EAM helps in planning more profitable real estate investments and targeting the areas that require greater focus. With the help of SAP EAM management tools, real estate agents and their organizations can share sensitive details and become more transparent to the parties that they are catering to.
Along with aligning targeted customers and addressing their asset and property based needs, this sub-module leads to effective collaborations with the providers of service, construction control and cost maintenance. Additionally, it helps in enhancing the corporate audit trail and reporting the consumption of energy. Overall, with the help of SAP Real Estate Management you can make your property more customizable; preconfigured; and compete with easy installable solutions.
The figure below provides an overall glance of REM (Real Estate Management)