Asset Management, as defined by Investopedia, is “maximizing a property’s value… so ownership can increase its returns.” At its core, Asset Management involves strategic planning to optimize the value and improve the financial performance of properties.
What about Asset Managers?
Asset Managers have a fiduciary responsibility to oversee their portfolio from an owner’s perspective and act in the owner’s best interests at every step along the way.
An Asset Manger’s typical responsibilities include but are not limited to:
- Conduct strategic business planning to identify methods to add value to properties with the goal of maximizing revenue
- Work Closely with Property Managers and Leasing Agents to identify deficiencies and ensure that deferred maintenance is taken care of in a timely manner and that rents are continuing to be priced competitively within the property’s submarket
- Study market trends and stay educated about changing submarket fundamentals ie., new construction, job growth, population growth, etc.
- Review cash flow/valuation models and prepare quarterly investment reports
- Perform asset underwriting/portfolio audits and deliver findings to investors
- Oversee acquisitions and dispositions and providing assistance with the due diligence process.
Ultimately, although Asset Managers work hand in hand with other facets of the Real Estate business to accomplish their goals, ie. Property Management, Construction/Project Management, Operations, Marketing, etc., they directly answer to investors and help drive the future direction of their company and success of the portfolio. As a result, it is imperative for every Real Estate business to employ stellar Asset Management practices and people.