Effective Asset Management

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18 Νοε 2013 (πριν από 3 χρόνια και 6 μήνες)

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Effective Asset Management

John Holdsworth

&

Sue Philpott

Effective asset management


What is it?


Why is it important?


What is an Asset Management Strategy
(AMS)


What it is not


An effective AMS should….


Key considerations


So what does this all mean?


Taking a comprehensive approach to managing
the physical assets in order to achieve


best use of these and


value for money.


Understanding and managing the condition,
performance (heat efficiency etc.) of, and risks
presented by your homes and other buildings.


It covers the construction, operation, maintenance,
modification, replacement and disposal of homes
and other buildings.


It includes ensuring that your co
-
op embraces
energy efficiency and promotes environmental
sustainability.

What is it?


It is a key Management Committee responsibility


Part of a planned, rather then reactive approach to
managing an organisation


Directly links to financial plans and rent setting
strategies, approaches to contract procurement
and aids and adaptations


Maintenance priorities can be set on a fair and
transparent basis


Should lead to improved value for money


Clear priorities for annual budget setting



Why is it important?

What is an asset management

strategy?


It actively manages the assets of the co
-
op


It sets out your understanding of and approach to
long term ‘financial value management’ and the
overall performance of your homes and other
property.


It helps you to make strategic decisions on stock
investment, retention or disposal, and rent levels
-

and perhaps your involvement in neighbourhood
wide activity.


It provides a framework by which you have:


Effective and transparent stock investment


Active asset management


Support for wider objectives

What it is not……


It is not just about delivering works
programmes


It does not mean that all your
properties should remain in your co
-
op


It does not mean that your co
-
op is
always the best landlord to manage
all your assets


An effective asset

management strategy should…


Define your values and strategies and how these relate to the
service and standards of repairs and maintenance and
tenancy management you and your members have set


Understand and take account of the policy environment in
which we live and work


Understand and assess the performance of your homes and
other property, your residents needs and expectations, and
the potential risks involved


Embrace social and environmental sustainability


Be based on option appraisal and financial modelling


Provide an affordable strategy that links to the business
planning process

Key considerations


Are the properties fit for purpose e.g.


are they inefficient and / or costly to maintain?


are they what the members and community
want?


are they too far away to manage well?


Could the equity released be used for other,
higher priorities?


Is the local neighbourhood sustainable?


The balance between investing in existing
and new homes


Cushioning against risk

So what does this all mean?


Planning and delivery of a successful repairs and
maintenance service


Responsive versus planned


Effective and appropriate procurement


Deciding on the service standards and priorities e.g. fixing fast to
last


Monitoring and management


Having the right data e.g. SAP, costs of repairs and maintenance,
expected life of key components etc.


Meeting your equality and diversity obligations


Take account of the diverse needs of existing and future
members


Promote positive attitudes and approaches and encourage
participation and access to homes and services



So what does this all mean? (2)


Measuring performance


Actual delivery against the AMS and plans e.g. void turnaround and costs


Appointments kept


Completion times


Resident satisfaction and feedback


Ask


what does success look like?


Managing risk


know your housing stock, what you
can afford to do and your current and future
members’ needs and aspirations


Understand current and projected demand for the properties, current
and projected cost of maintaining your homes at current standards,
current and projected income,


Consider energy ratings and efficiency measures, void standards,
approaches to renewing fixtures and fittings, shared accommodation v.
self contained, green v. traditional etc.

So what does this all mean? (3)


Essential that MC members:


have the knowledge to provide an effective strategic
overview of the management of the co
-
op’s assets and
the repairs service


ensure the asset management strategy, business planning
process, other associated strategies e.g. your contract
procurement, and your approach to risk management and
decision making across the co
-
op are aligned


scrutinise performance in delivering contracts and services
to meet the asset management strategy


consider issues such as maintaining sustainable assets,
delivery of quality, timely repairs and achieving value for
money.


So what does this all mean? (4)


Members value:


The MC being clear what the co
-
op can
and will do, when it will do it and what it
will not do


The MC keeps its promises and does what
it says it will do when it says it will.


Members are consulted on key issues and
kept fully informed throughout the process


including when not much is happening.


Case Studies


Case Study 1

Financial Model and Asset Management
Plan

ANO Housing Co
-
op

Background information


23 Unit Co
-
op, social rents


No plans to change activities


History of low rent increases


As properties age component replacement
requirements increasing each year


Committee needed robust information
for
longer term financial plans, rent setting
strategy and asset management

Available Information


11 year old condition survey, not updated


Historic maintenance records


2009 Decent Homes survey summaries


Report from gas service contractor


Annual accounts and financial records

Key issues


Condition of properties was the key issue for
members


Independent view of priorities needed


All loans repaid by 2022, freeing up cash
flow


Condition data supplemented by selected
site visits


Small Co
-
op, committee had good
knowledge of the properties

Project findings


Keeping the Co
-
op’s properties in
acceptable condition achievable but
finances would remain tight


Annual rent increases above inflation
needed for at least the next 10 years

Case Studies



Case Study 2

Financial Model and Asset Management Plan

XYZ Housing Co
-
op

Background information (1)


45 Unit Co
-
op, 40 tenants and 5 leaseholders


Long lease for 35% of Co
-
op units expiring
and substantial premium needed to renew


Older properties with increasing
maintenance needs


HHSRS issues identified in communal areas


Potential solar panel project at a block of
flats needing substantial investment



Background Information (2)


Empty property which could be sold on a
long lease


Previous condition survey, not regularly
updated.


Historic maintenance records, particularly
on boilers and kitchens


Reports from gas service contractor


Annual accounts and financial records



Key issues (1)


Condition of properties was the key issue for
members


Need to balance different priorities:


* Renewal of long lease


* Investment in solar panel project


* Keeping properties up to standard


* Whether to sell the vacant flat



Key issues (2)


Condition data supplemented by selected
site visits


Committee needed robust financial and
asset management plans so the available
options could be properly considered





Project findings


Solar panel project not achievable in view
of initial investment needed


Loan finance needed to be able to keep
planned maintenance at the required level


Sale of the empty property would reduce
the level of loan needed


Annual rent increases above inflation
needed for at least the next 5 years



General points for Asset

Management Plans


Keep it simple, broad categories not too
much detail


Not an exact science, needs to be
accurate enough to make competent
decisions


Plan should be regularly updated as new
information becomes available, reviewed at
least annually



Q&A



Q&A