If you are looking to invest in real estate, whether you are looking into apartment complexes, office buildings, or multi-use options, chances are good you are looking to learn all you can about what you need to know in order to make sure that your investment is a fantastic financial success.
One of the things that you will definitely want to have a strong grasp on is the difference between an asset manager and a property manager. While they both are very important to the success of your investment, they are quite different.
So what is the difference between property management and asset management? Let’s break it down together.
Overall, property managers are in charge of handling the day-to-day management and responsibilities of the property. This means that they are the ones who are in touch with tenants, in charge of tenant satisfaction and retention, and are the ones who address and enforce lease compliance.
They are also the person who will be in touch with vendor maintenance, taking care of landscaping needs, and manage services such as electricity, power, and waste disposal.
One of the top advantages of having a property manager on your staff is because they have great knowledge and understanding of what it takes to be a successful property. They are also experts when it comes to local property management laws and regulations.
Ideally, a property manager will not only help you retain happy tenants for years, but they will also help you avoid any legal issues when it comes to dealing with tenants and much more.
What do asset managers do?
Now that you have a general understanding of what property managers do, it is time to move onto asset managers. Overall, the role of an asset manager is to make sure that you are increasing the property’s value and maximizing your return on investment.
They also serve as an overseer of the property manager to make sure that what they are doing will always go towards an appreciation of value and maximizing ROI.
Other responsibilities include strategic management, careful and responsible budgeting, choosing what types of improvements to make, market research on the property and surrounding properties as well as finding the best financing options for the future. They are also pegged with the job of finding any new methods of creating additional value in the property, such as renovating, adding units, improving public spaces, and more.
Why know the difference
In the end, the most important reason for you – the property owner – to know the difference between these two roles is that you can hold the asset manager responsible for the performance of your asset and hold the property manager responsible for keeping your asset in running order.
Overall, having both on your staff will not only make your life easier but will also lead to a more valuable asset now as well as into the future. Now all you’ve got to do is find the right people for the job.