{"id":9113,"date":"2021-12-15T19:24:58","date_gmt":"2021-12-15T18:24:58","guid":{"rendered":"https:\/\/www.yourrealinvestment.com\/asset-management-real-estate-asset-management-vs-property-management\/"},"modified":"2021-12-15T19:24:58","modified_gmt":"2021-12-15T18:24:58","slug":"asset-management-real-estate-asset-management-vs-property-management","status":"publish","type":"post","link":"https:\/\/www.yourrealinvestment.com\/en\/asset-management-real-estate-asset-management-vs-property-management\/","title":{"rendered":"ASSET MANAGEMENT: REAL ESTATE ASSET MANAGEMENT VS. PROPERTY MANAGEMENT"},"content":{"rendered":"

Hiring a real estate asset manager<\/strong> is a natural step for rental property investors as they grow their property portfolio.<\/span><\/p>\n

Often, however, investors confuse property management with real estate asset management<\/strong> and wonder if two different professionals are really needed.<\/span><\/p>\n

The fact is that property and asset managers play two very different roles, and the more successful investors<\/strong> in their rental property investment, use a real estate asset manager, get higher returns<\/strong> and greater portfolio growth.<\/span><\/p>\n

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WHY DO RENTAL PROPERTY INVESTORS NEED AN ASSET MANAGER?<\/strong><\/span><\/h5>\n

As real estate prices continue to rise and competition for good rental properties increases, the demand for professional asset managers who can maximize returns<\/strong> and market values for investors continues to grow.<\/span><\/p>\n

A real estate asset manager monitors the market<\/strong>, keeps abreast of the latest real estate trends and research, and stays abreast of macroeconomic, political and financial trends. In doing so, an asset manager helps an investor’s portfolio grow<\/strong> and ensures that each rental property meets and exceeds its fair market value while mitigating any potential risks. <\/span><\/p>\n

The best real estate asset managers<\/strong> also go beyond hard data by understanding the subjective nuances of each client. This is because each investor is unique<\/strong> and, to one degree or another, investment goals and objectives are based on background, family situations and work histories, health, financial and knowledge resources and desires. <\/span><\/p>\n

Thus, a professional real estate asset manager can offer invaluable insight to<\/strong> rental property investors<\/strong> who may be too busy with a 9 to 18 job to fully appreciate and capture the profit potential of each asset in the portfolio.<\/span><\/p>\n

REAL ESTATE ASSET MANAGEMENT VS. PROPERTY MANAGEMENT<\/strong><\/span><\/h5>\n

As rental property investors expand their real estate portfolio, it becomes increasingly important to include a<\/strong> real estate asset manager<\/strong> as a key part of the team.<\/span><\/p>\n

A property manager focuses on the day-to-day operations of a rental property, while an asset manager is concerned with the broader, long-term financial picture.<\/strong><\/span><\/p>\n

Asset management<\/em><\/span><\/p>\n

Asset managers focus on the strategic big picture to maximize the value of each<\/strong> rental property<\/strong> and obtain the highest return on investment (ROI) for the owner.<\/span><\/p>\n

The key tasks and responsibilities of an asset manager<\/strong> include creating an overall strategy for each rental property and the entire real estate portfolio; enhancing asset value by wisely reducing expenses and increasing revenues; hiring and supervising the property manager; and preparing, monitoring and adjusting real estate financial projections and financing strategies.<\/span><\/p>\n

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BASIC RESPONSIBILITIES OF A REAL ESTATE ASSET MANAGER<\/strong><\/span><\/h5>\n

Real estate asset managers generally specialize in different types of assets<\/strong>, such as single-family rental properties, multifamily, certain geographic regions of the country, and specific investment strategies such as buy and hold for the long term.<\/span><\/p>\n

The goal of a real estate asset manager<\/strong> is to achieve the highest possible property value and return on investment for each asset and for the owner’s overall portfolio.<\/span><\/p>\n

Real estate asset managers achieve this<\/strong> by strategically reducing expenses, maximizing rental income streams and reducing risks and potential liabilities for the rental property investor.<\/span><\/p>\n

Primary responsibilities and objectives of a real estate asset manager include:<\/strong><\/span><\/p>\n