Asset Management Services: How They Grow Your Bottom Line
September 03, 15
Asset management services are services that every property owner needs. While the label makes it sound like property management, the two are very different. How?
While property managers run the property itself, asset managers seek to improve the property as an investment. Let's look at rent as an easy example to show the difference:
The property manager will collect rent from tenants, communicate any issues with tenants, etc. An asset manager will find ways to raise rents in order to increase the value of the property as an investment.
So how do these services affect you as a property owner and investor?
By growing the actual cash-flow of the property, the asset manager increases the value of the property itself. At a 10% capitalization rate, every extra $1 in revenue increases the value $10.
Put simply, the growth in revenue that an asset manager creates increases the value of the property by ten times that amount. Not a bad investment.
However, very few property managers are comfortable with this kind of management. They might get a small part of it, doing things like raising rents each year to keep up with inflation or the market. This is just a small aspect of asset management though, and you really do need someone experienced in the field.
If you're interested in setting up asset management for your property, just contact us. We can help you with the more high level aspects of your property, and keep your investment growing while the rent keeps coming in