Thinking to get hold new rental property? It’s time to hire a real estate asset manager. However, most of the time investors when looking for property to diversifying their portfolio confuse property management with real estate management. Even the professionals often wonder if they really need these two professionals or what’s the difference between them?
Professionals with successful property or real estate investment understand that these two services are extremely important. They use and endorse others to avail services of both for higher profits and stronger portfolio growth.
Let’s take a detailed look at both professions to kick start your property investment with the right guidance.
Property Management VS. Real Estate Asset Management
To complete the day to day operations of a rental property, property management services are needed whereas, when needed long-term or bigger financial guidance, asset management services come in handy.
If the investor has one or two rental properties, then the investor will be fine with just a professional property manager. However, as rental property investor wishes to scale up their real estate portfolio, it becomes essential to seek guidance from an asset manager for the best outcomes.
The property managers or the firms offering real property asset management deal with the daily activities or regular management concerns of the rental property.
The tasks focused on and handled by the property managers involve finding and contracting with the ideal tenants, executing leases ad enforcing the terms and conditions, maintaining the property, collection of rent from tenants, giving out payment to vendors, and providing the owner with annual or semi-annual financial reports.
Real Estate Asset Management
The asset managers or the firms offering asset real estate management deal with the big-scale for enhancing the value of the rental property and getting the maximum return on investment for the owner.
The tasks focused on by the asset manager involve coming up with an overall strategy for every rental property owned by the client and the overall real estate portfolio, the manager will look for diversification and reduction of expenses, increasing revenues, looking out for, monitoring and adjusting property financial projections, making strategies for finances and looking for the best property managers.
Investors Need Real Estate Asset Managers for Rental Properties
The real estate prices keep on rising and there are rarely times when the opposite happens. Therefore, to cope with rising prices and compete successfully for a good return, it is extremely important to look for professional asset managers.
A professional and effective asset manager will monitor the market, keep track of the latest changes, ideal property for investment, trends, forecast the coming changes, and stay vigilant about the macroeconomic, political, and financial trends. Having information and understanding of these can help the manager to create a strong, profitable portfolio while dodging all the risk in between.
The best and ideal real estate asset manager will get hold of the ideal property manager for each of the rental property; as individual attention to each property is as important and crucial for returns as the portfolio on the whole. For a working person, busy with a 9-5 job, it is quite impossible to get hold of every detail and manage the portfolio with desired outcomes. Therefore, having hired an asset manager will go above and beyond to bring the needed profits on each penny of your investment.
Three Steps for Successful Investment by Strategic Asset Managers
For the best results, assets managers use the following three steps with detailed market knowledge, forecasting, experience, and instinct regarding the performance.
Acquisition: The real estate asset managers find the best spot for investors. With the forecasted result, reliability, and other information, the managers advise the investor. Multiple factors are analyzed by a manager to reach the decision.
Hold: In the holding period, the manager focuses on the daily activities, and results of the property managers while monitoring the overall investment results.
Disposition: The managers believe in continuously buying and selling to avoid accumulation and loss in a portfolio. Therefore, when the right time comes, managers look at multiple factors to finalize when and how to sell the rental property.
The property owners or rental property investors look for the property asset management and investment management firms to maximize their returns and scale-up the whole portfolio. The real estate managers will pave the way and lead the investor throughout the journey and bring to the desired stop.
With a professional asset manager and property manager in hand, the investors can acquire and manage the best of property options available, make a diverse and ideal portfolio and have detailed attention on each property, all at the same time. Therefore, each professional hold immense and equal importance when aiming for a perfect portfolio and high returns.