Most people think once they hire a property manager that their job is finished, but this is a mistake. Most people who own a building and rent it out to others think of themselves as managers, and not as investors. This could be hurting your business, cost you money and even lower your property’s value. Therefore you will want to learn the differences between property managing and real estate asset management in Maryland.
Assets
An assets manager should be more focused on maximizing property values and return for the investor, which in most cases will be you. If you don’t have a real estate asset management company working for you, then you may also be the assets manager and will need to think like a CEO of a company.
Property
Property managers are more focused on the day-to-day activities of a property and how to manage them properly. They consider any repairs that tenants think should be done, find repair companies, collect rent and handle their daily needs. They typically think like a manager in a store and how to run the store smoothly, instead of how to increase the corporation’s money.
Both options are important to have, but it is important that everyone knows what is expected of them. In some cases, you can have assets and property managers from the same company, which can save time and money.
What to Focus On
An assets manager should focus primarily on increasing incomes, reducing expenses and improving the value of the property. Figure out how to increase the rent or increase the number of people living in your buildings in order to increase your income. Check to see if the rent you charge is similar to other markets in the area or add new additions to the area, such as a pool, so you can charge more.
Reducing expenses can include keeping your buildings up to code, so there are fewer repairs necessary, regular maintenance checks on air conditioners and furnaces, reduced insurance costs by finding better rates and much more.
Property values are typically increased when you live in a safe neighborhood and add individual appeal items, such as pools, gardens and other landscaping.
Delegate Tasks
While you will want to delegate tasks to your property manager, you should not leave everything to them because you want to ensure that everything they do increases value and money.
Real Estate Asset Management in Maryland is different than property managing, and it is important that you know the difference. Whether you want a property manager or assets manager, visit Real Property Management Capital to learn more.
