Learn The Important Distinctions Between an Asset Manager and a Property Manager
As an investor in multifamily properties, it’s important that you know the difference between an asset manager and a property manager.
When you own multiple investment properties, you need to be able to rely on trusted individuals and companies to protect your investment. Knowing the distinction between an asset manager and a property manager will enable you to get the most out of your investment and allow you to hire the right people, or company, to care for and manage your property.
Many property management companies will blur the roles of asset management and property management by referring to the company’s property managers as asset managers. However, the responsibilities of the two roles couldn’t be more different.
Property managers handle the day-to-day management activities of a property. They are responsible for tenant relations, tenant retention, screening new tenants, and reinforcing lease compliance.
Property managers also take care of contract and vendor maintenance like landscaping and waste disposal. They are important to the overall maintenance and operation of your multifamily property.
One of the biggest advantages of hiring a professional property manager is their knowledge and understanding of property management laws and regulations. They can help you avoid legal problems, such as how to avoid breaking discrimination laws when selecting tenants and how to legally handle evictions if and when needed.
The role of an asset manager is to increase your property’s value and to maximize your return on investment. This role can be played by either the investor themselves or the syndicator in the case of a syndicated deal.
In addition to managing the property manager, asset managers are also responsible for maximizing the revenue potential of the property. This requires strategic management, careful budgeting, choosing the best capital improvements to make, regular market research on the property every 6-12 months, finding the best financing options, and — most importantly — selecting the right time to sell the property. Asset managers also work to identify new methods of creating additional value in the property.
One of the biggest advantages to knowing the distinction between an asset manager and a property manager is that you can then hold the asset manager clearly accountable for the performance of your asset.
If you as an investor choose to be the asset manager yourself, then you know it’s your job to manage both the property manager and all other aspects of the asset. When choosing a syndicator to invest with, it’s essential that you review their asset management skills as part of your due diligence process.
At 100Units.com, our multifamily advisors work hard to find the right investment opportunities for you. In addition to our network of qualified buyers and list of trusted vendors, our partnership with Florida Realty Investments gives clients all of the property management solutions they need to run their property successfully.
Contact us to learn more today!