OVERVIEW OF MANAGING REAL ESTATE
The social and economy changes that took place in the early 20th century led to a rapid development of real estate industry.
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OVERVIEW OF MANAGING REAL ESTATE
The social and economy changes that took place in the early 20th century led to a rapid development of real estate industry. The social and economy changes that took place in the early 20th century led to a rapid development of real estate industry. These changes started to take form and standardized the sphere of services on this market, which includes activities in the area of real estate management. Real estate management is defined as property management which consists of making all decisions and taking all activities necessary to maintain the real estate in proper condition in compliance with its purpose, and as well as making justifiable investments in real estate.
As a result of the goal pursued by owners, which is to permanently keep the manage object adjusted to changeable market, economic and social environment, an increasing number of property owners and investors and care takers have caused the accelerated development of practical, educational and research activities in this field.
CONCEPT OF REAL ESTATE MANAGEMENT (REM)
This concept was developed and created to achieve a logical, consistent and sustainable real estate management structure and also to set a base for organizing real estate management as a professional service. Emerging from the theory of management organizations, real estate management (REM) has been designed as a specific sector of management science which deals with designing, directing and developing social systems in the area of real estate economics.
According to the basic process of the transformation of goods, the real estate life cycle has been divided into the following stages stages, thus:
The stage of conception/supply: in this phase, investors and users are determined and different options are weighed with due diligence. These options includes, the acquisition of existing objects which could either be a land or a building, then development or reconstructions are evaluated, and questions of finance have been ascertained. With this phase begins the activities of use, letting, maintenance, modernisation and refurbishment arise periodically.
The stage of use/operation (this is an important feature of the three) with this phase, begins the activities of use, letting, maintenance modernisation and refurbishment which arises periodically. Therefore, the second phase of the analyzed real estate management (REM has been divided into the three perspectives, i.e.: technological, return–oriented and use-oriented. The technological aspect focuses on the physical deployment, maintenance and recovery or disposal of real estate with the aim of optimizing quality, costs and deadlines. The output of the transformation process here is real estate (including land, buildings and infrastructural facilities), meaning quality space at any time it is needed.
In this perspective, core activities such as the design, construction and operation of real estate are determined by the architectural and technical conception of the property and its operation. Organizations whose main business purpose is located in this area pursue design, construction and operation as the core business of their economic performance. These include such entities as: project developers, project managers, architects, planners, builders and real estate facility managers.
The project and process management of planning and construction are important concepts. With the change of the real estate to the use/operation phase, project management gives way to inventory management, including maintenance, repairs and facility management. Finally, in the recovery phase of a real estate, demolition management and decontamination become important. Technologically oriented activities should provide the other two perspectives with functional real estate. Another aspect here is that priorities of the finance-oriented perspective are related to the financing of and investment in real estate, so that real estate activities are performed from the viewpoint of capital investments with the goal of optimizing return, limiting risk and liquidity stemming from the real estate investment.
In conclusion, the review carried out showed that the definitions, objectives, tasks and organizational forms of real estate management have emerged with the development of business activities, needs of property investors and users, and general changes in the market environment of the real estate industry.
With increasing economic pressure in the real estate business in a globalized and complex world, real estate management services offered by different specialists are becoming particularly sophisticated. More also, these services are executed at multiple levels and from different points of view, involving many actors pursuing different objectives in the market environment.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY: CHAMAN LAW FIRM TEAM
E-MAIL: chamanlawfirm@gmail.com
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