Facility Management is a key component for preserving your real estate investment. According to the GDP Report for Q1 2021 published by the National Bureau of Statistics, Nigeria's real estate sector grew by 1.77%, contributing a total of 5.28% to the real GDP of the country for the period under review (around USD5. 3 billion). This sector is estimated to grow at speedy rate.
A World Bank study projects that the cost of bridging this 20 million housing deficit is N59.5 trillion, indicating the vast and untapped investment potential of Nigeria's real real estate sector. A sizeable amount of this investment is physical and this is where Facility Management plays a major role.
Despite increased development activities in Lagos, the State still needs over 3 million residential units to meet demand. A population of 23 million, a household size of 4.9 people, and a housing stock of 1.49 million units, these three numbers paint the true picture of Lagos' housing deficit. More than 500,000 people move to the city every year, and across Nigeria, there is already a housing deficit of more than 17 million units, according to government data.
The population of Lagos is expected to double by 2050, putting even more pressure on already limited housing options.
What is Facility Management?
Importance Of Facility Management Companies in Real Estate Development in Nigeria
Understanding the relevance of facility management in real estate development is pivotal to the long-term success of the project.
Before acquisition or development of real estate is undertaken for whatever purpose, there are important details, in terms of physical property operations, finances and personnel to consider. Your FM practitioners are ultimately responsible for ensuring cost effective ways of managing and delivering real benefits in the preservation of your real estate investment value.
The business of FM has move beyond a mere mundane task in which a close family member is attached to a building as the property or facility manager, this unprofessional approach oftentimes does not end up well.
Facility management company is involved in the following Services:
Maintenance of building
Construction and remodel
Repairs to problems and mall functions
Day-to-day operational management of the building
Space allocation and change
Manage operational costs
Identify and reduce risks etc.
Underpinning all of these is effective facilities management.
Actual Scenario In The Present Day Real-Estate Sector
Big real-estate developers are involved nowadays in facility management services, providing more value-added services with the application of high-level technology and cost-saving measures. Apart from building, selling, leasing, renting plots, flats, villas etc., real-estate developers are offering specialized services for maintenance of buildings, thereby reducing cost and operational risks.
Since people are opting for better lifestyles, more and more bigger houses, villas, flats have been demanded with modern amenities and facilities. Property developers are now keen to play the role of facility management providers so as to provide specialized services at an optimal cost.
With the future in mind, FM is not just a department in a big construction company, it is a separate business entity with its own vision, mission and vibrant team who work daily to deliver what is promised to service users which may be residents or tenants.
To undertake a new line of work, Developers may have to reevaluate their overall business objectives and mission and critically answer the questions of how ready they are to overwhelm themselves with FM activities or simply partner or outsource the FM service to a competent FM company. A decision has to be made early enough even before the start o the construction company to include FM business or at when the Developer realizes that the FM operations have started to strangulate the construction side of business or threaten overall corporate goals.
Some Developers think of residential estates especially the large residential estate as a viable captive market potentially offering promising long-term cross-selling opportunities. Certainly, this is a good motivation for interested Developers who are willing to take advantage of this marketing opportunity, however, the stress of satisfying the dynamic and ever-increasing demands of the residents often overwhelm the Developer and, in many cases, they eventually lose control of the estate or FM service through lawsuits or heavy resistance to the compelling residents/homeowners and estate associations.
This day, many new entrants and progressive Developers have soon realized that the stress usually outweighs the gains of trying to collect service charge hence they hire professional FM companies to undertake this service professionally.
There is common misconception by some members of the public about facility management being a cash cow. They think FM companies thrive on mark ups on diesel price or uncanny ways of shortchanging the service users. This is a shortsighted submission laced with presumptive emotional views, a data-starved assumptions to say the least. Many facilities taken over forcefully by tenants or residents associations with such unguided motives have ended up with bitter pills of up higher rates, service charges and some have resorted to hiring a competent FM company to take over the FM services so they can enjoy their right to peaceful enjoyment of their homes or offices as the case may be.
Facility Management Career
Estate Management includes a broad category of commercial property such as offices, hotels, shops, or it can refer to the management of a residential property and it deals with the appraisal, acquisition, development, marketing, or management of a property. There are facilities management training and facility management courses available online and onsite to grow individuals who are interested in becoming maintenance manger and establish a career with any facility management companies in Nigeria or anywhere in the world.
A career in international facility services, building management or estate management offers exciting opportunities for those interested in the property sector. There are long-term jobs for facility manager or career opportunities available to goal-oriented, driven, and passionate individuals. The competences and qualities of a good Estate manager include Communication, Organisation, Interpersonal skills, Problem Solving, Leadership, Adaptability, Marketing and Sales.
Many new entrants often confuse the different facility manager jobs title around real estate management services such as: Facility Manager, Estate Manager or Property Manager. These names are very interrelated and sometimes used interchangeably to describe the key responsibilities of planning and executing the overall management of a property; the job titles however have distinctive definitions.
Responsibilities and Role of a Facility Manager or Estate Manager
To deliver proficiently on the functions of facilities management, maintenance manager is expected to:
Plan, direct, coordinate and execute day-to-day operations.
Answer and respond to customer service requests and inquiries.
Process customer work orders, needs, and requirements.
Ensure compliance with health and safety regulations and security service.
Interact and ensure smooth relationships between tenants, service users and owners.
Provide lease administration and ensure effective space management.
Prepare financial budgets, reports, payment information and inventory of the property and facilities.
Initiate and implement methodologies in managing properties.
Maintain accurate records of equipment functioning status and other systems in building.
Implement best practices, procedures, and standards in property/facility operations
Source, Screen, and overseeing operations of external vendors.
Facility or Estate managers are expected to generate and keep periodic reports on Upcoming and deferred preventive maintenance; Comprehensive costs and Rents updates; Equipment and Asset histories; Monthly work order reports; Team performance; and Recommendations
Managing Facilities From Start to Finish: RP Facilities Limited
The future of Facility Management looks bright. As technology and data-driven services become more available, Facility Managers will be able to effectively manage their facilities with greater efficiency and accuracy. Facility Managers will be able to leverage data-driven analytics to create predictive models that will help them anticipate and plan for future needs.
Additionally, Facility Managers will be able to access more sophisticated tools and technologies that will enable them to better manage their facilities. This will lead to improved cost savings and increased safety and security in the workplace. The future of Facility Management is an exciting one, and Facility Managers will be able to ensure their facilities are managed effectively and efficiently for years to come.
Credit: rp media team, ifma