March is National Asset Management Awareness Month, making it a great time to recognize your asset management professionals. But, if anything, it’s an excellent time to learn how improving your asset management practices can play a part in your overall mission and revenue goals. So, read along while we review all you need to know about asset management and how to improve your company’s processes.
Contents of This Article:
- What Is an Asset?
- What Does an Asset Manager Do?
- How to Celebrate Asset Management Awareness Month
- Asset Management vs. Property Management
- Hire Professionals to Manage Your Rental Assets
What Is an Asset?
Investopedia defines an asset as “a resource with economic value that you own or control with the expectation that it’ll provide a future benefit.” For example, an asset can generate cash flow, reduce expenses, or improve sales. That said, there are several types of assets, like current, fixed, financial, and intangible assets.
If you’re unclear on what makes something an asset, you’ll find that it generally provides a current, future, or potential economic benefit for a company or individual. For example, assets can include real estate, land, equipment, and other types of investments.
When you own assets of any kind, it’s essential to manage them correctly to mitigate risk and grow or preserve your portfolio. For example, if you’re a rental property owner, you may consider property management services in Northern Virginia. So, just keep reading to learn more about asset management and how to manage your real estate business.
What Does an Asset Manager Do?
Real estate asset management is the process of increasing the value of your properties and returns on investment. Generally, you’d hire a financial institution or company to manage your investment portfolio. Then, that company will work to grow or preserve your portfolio while mitigating all risks involved.
A real estate asset manager manages investment portfolios for their clients. For instance, they’re usually responsible for identifying hot real estate markets, trends, and opportunities to expand. Clients who may benefit from a real estate asset manager range from individuals, private companies, corporations, or even governments.
Once hired, a real estate asset manager may be hired to handle residential, commercial, mixed-use, and vacation rental properties. Generally, asset managers perform the following duties:
- Cash Flow Management
- Assist in Transactions
- Negotiate Agreements
- Improve Property Values
- Find Applicable Lenders
- Conduct Market Research
- Develop a Budget and Financial Strategy
- Analyze Property Data
Overall, the main goal of real estate asset management is to maximize investment returns. As a result, real estate investors can benefit from asset managers by diversifying their portfolios and earning higher returns. Next, we’ll discuss ways to celebrate asset management awareness month and more benefits for investors to consider.
How to Celebrate Asset Management Awareness Month
If you’re unfamiliar with Asset Management Awareness Month, it’s an event sponsored by the National Property Management Association (NPMA). During the month of March, they provide free resources to help businesses better understand what asset management means and how to create a comprehensive plan to manage their assets better. Here are three excellent ways to celebrate and contribute to Asset Management Awareness month.
- Get Involved
- Stay Informed
- Evaluate Your Plan
Get Involved
Getting involved is one of the best ways to contribute to asset management awareness. You can do this by joining the National Property Management Association (NPMA), a non-profit association for property management professionals. They continuously provide members with programs, education, networking opportunities, and services for professional development.
Stay Informed
You’ll want to stay informed if you’re already part of an asset management program. After all, asset management processes are ongoing, and your learning should be, too! So, throughout the month, you can view free webinars from NPMA with tons of information and topics ranging from self-assessments to asset disposition.
Evaluate Your Plan
Finally, another great way to contribute to National Asset Management Awareness month is by evaluating your current plan and management processes. So, consider your current management strategy, the accuracy of asset details, and the effectiveness of communication between you and your asset management team.
Asset Management vs. Property Management
If you’re a real estate investor, you may assume that an asset manager is the same as a property manager. After all, they both have similar purposes, and their end goal is to increase your investment returns. However, there are a few main differences between these two professions.
For instance, an asset manager handles the finances and financial strategy for an investment property or portfolio of properties. On the other hand, a property manager handles the daily operations of owning a rental property. For instance, property managers collect rent, handle tenant complaints, hire contractors for maintenance, and ensure properties are in excellent condition.
Additionally, while property managers hire contractors to solve issues within the property, asset managers choose upgrades to increase the property’s value. However, there are some tasks that overlap between an asset manager and a property manager. For instance, property managers or asset managers may market vacant rentals to find new tenants.
Ultimately, the responsibilities of a property manager and asset manager depend on the investor or company. For the most part, asset managers focus more on the business and financial side of things, while property managers handle the majority of daily operations.
Hire Professionals to Manage Your Rental Properties
Whether you’re a one-man show or have a growing rental property business, diligently managing your assets is crucial. So, if you take away anything from National Asset Management Awareness Month, consider how improving your practices can improve your business. That said, if you own several rental properties, hiring someone to manage them can help relieve stress and help you reach your revenue goals.
Learn more about our rental management services today!
Bay Property Management Group has extensive industry knowledge and experience in managing all types of rental properties. So, if you want help running your rental business, look to the professionals. BMG can help market properties, screen tenants, perform maintenance, and track rental income and expenses. So, contact us today to learn more about our comprehensive property management services.
