A Conceptual Controlling Framework for Housing Portfolios

This paper presents a framework model for structuring a controlling system for portfolio-, asset- and property management for profit-oriented housing companies. The starting point in the analysis is the changing market conditions for housing management in Europe and particularly in Germany. Despite these developments, scientific papers dealing with the topic of controlling for housing portfolios are hardly to find in management science literature. The current state is separately typical for the issue of the arrangement of management and controlling functions and the constructing process of controlling systems for housing companies. Therefore a general view of publications in real estate literature dealing with the topic of the paper is given. A comparison of the assumed needs in practice with the unsatisfying state of knowledge of the scientific research points out a high research potential. Further a general management model is adapted to the characteristics of the housing industry with emphasis on the financial dimension. Based on these findings the value creation chain and its interactions with management and controlling processes in the portfolio-, asset- and property management are described. In this context controlling is defined as a function of supporting management with information, while securing the internal and external adaptation-ability of the company. The influencing factors on the creating process of a controlling system for portfolio-, asset- and property management are highlighted systematically. Finally the paper outlines further research potential in the presented issues.