Managing real estate operations is not that easy. Asset managers have to oversee a wide range of real estate resources, identify workflow bottlenecks and constantly strive to enhance productivity and profitability. The speed at which asset managers can carry out those tasks is greatly determined by the management strategy that they use.
Reviewing real estate assets on a frequent basis is crucial for executing smooth business functions. It unveils information on what the economic value of assets are, what condition they are in, what new assets need to be acquired and more.
However, the use of ineffective real estate asset management strategies can result in complications. It costs real estate organizations both time and money. This circumstance is best averted by implementing a strategy that analyzes asset performance and at the same time improves income.
Rapid advancements in technology has made several business processes across various industries easy to manage. The real estate industry is no exception. The advent of innovative digital solutions has impacted it as well.. The emergence of real estate management software has become a major boon to this segment. They can perform a variety of powerful asset management functions effortlessly.
Let’s take a look at how real estate management software can help you take your business to the next level.
What is real estate asset management?
The primary function of real estate businesses is to acquire, develop, lease, rent and manage various properties – both commercial and residential. Several tangible assets are acquired in this process, they include:
- Retail spaces
- Vacation homes
These assets need to be monitored and regulated in order to yield stable returns. When it is done in the correct manner, they will provide real estate companies with a stable, long term cash flow. This entire process is known as real estate management. Let’s take a look at what the challenges of managing real estate assets are.
Challenges of managing real estate assets
With the right real estate assets, your business can earn high turnover rewards. While there are several advantages to running a real estate company, it also has its fair share of challenges. No matter how many assets you have, it can be difficult to keep a tab on all of them. Here is a list of common challenges that obstruct the progress of real estate organizations:
- Unforeseen maintenance costs
- Property damage
- Excessive costs
- Diminished returns
- Hiring and maintaining employees
- Reviewing property conditions like electrical, fire and gas safety.
- Operating costs and more.
Neglecting these challenges can result in business-halting ramifications. On the bright side, these bottlenecks can be overcome with the right asset management strategy, especially with a real estate asset tracking software.
Advantages of real estate asset management
Managing multiple assets under one roof can be tedious. But with the right asset management strategy, it becomes not only easier to manage assets, but it is also highly rewarding. The objective is to achieve higher returns on investments, and asset management helps real estate organizations reach that goal.
Advantages of real estate asset management include:
- Reduction in costs
- Increase in savings
- Helps make informed decisions
- Provides comprehensive asset details
- Mitigates risks
- Minimizes asset depreciation
- Maximizes value of properties
- Helps diversify assets
- Effective communication
- Negotiate profiting contracts
Real estate asset management strategies
There are many ways to manage multiple real estate assets. How you manage your assets eventually boil down to the type of asset management strategy you use. A good strategy enables you to achieve your business objectives, cut down unnecessary costs, optimize asset usage, effectively plan budgets and more. So what real estate management strategy should you choose?
Manual real estate asset management strategies
Manual asset management strategies are most popularly used in the real estate industry. Just because they are most widely used does not make them a good choice. Manual asset management methods include the use of paper-based asset reviewing techniques and the use of spreadsheets. Such tools can store large amounts of asset data, but they are also error-prone. In addition to typos and omissions, they are known to cause negligence in:
- Maintaining assets
- Recording the physical condition of assets
- Overseeing budgets
- Calculating costs
- Optimally spending money
- Monitoring timelines and more.
Real estate asset management software
A real estate asset management software is a digital solution that helps you do more than just manage properties. It consists of powerful tools with which you can perform a myriad of asset functions such as:
- Approving lease applications
- Resolving maintenance problems
- Allocating monthly and yearly budgets
- Tracking asset location
- Comparing properties
Furthermore, a real estate tracking software lets you exert complete control over all your assets from a single application. It gives you an arsenal of versatile features to boost the prospects of your business. They include:
- Online payments
- Document storage and management
- Property details
- Analytics and insights
- Tracking maintenance requests
The answer to which real asset management strategy you should use is obvious, select a good real estate asset management software.
Benefits of using a real estate asset management software
By implementing a real estate inventory tracking solution, you can seamlessly manage internal operations and deliver exceptional services to customers. Benefits include:
- Data security
- Ease of use
- Easy backup and recovery of data
- Simple scalability options
- Reduced costs
Employing a real estate asset management software in your business is a fantastic substitute to hiring a property management company. With the software, you can perform a plethora of core tasks like tracking payments, condition of properties, overseeing inspections and more yourself. Real estate asset tracking solutions make performing such crucial business functions a walk in the park.
If you’re looking to enhance your real estate operations and reach new profit heights, then what you need is SmartAMS from SmartPoint. It is a cloud-enabled, all-in-one, feature-rich and powerful real estate asset management software that gives you full control over all your assets. Contact them today.