COVID-19 has had a huge impact on many areas of business. If you’re an investor, you might be wondering where to invest for the best returns.
The real estate market suffered in the early months of the pandemic. Yet it bounced back and has flourished ever since. This makes it a great place to invest.
A question that will emerge for rental property investors is whether you need an asset manager or a property manager. Or do you need both?
We’ll break down the difference between real estate asset management and property management. Read on to find out what it is. We’ll also help you choose which one you need.
What Is Asset Management?
An asset management service will look at your portfolio as a whole. They’ll track what the market is doing and watch real estate trends.
They also keep on top of trends in the political, financial, and economic world. It’s their job to combine this knowledge to manage your portfolio.
Asset managers can pinpoint assets you can optimize. This might happen either by increasing their value or cutting their costs.
They often specialize in types of property. This gives them specialist knowledge in your property niche.
They’ll work to grow your portfolio and boost the market value of your individual properties. In short, it’s their job to realize the potential of the properties in your portfolio
What Is Property Management?
Property managers look after your properties on a more mundane level. That includes the routine activities associated with renting.
They’ll find tenants and deal with them on your behalf. Property managers also handle leases, collect rents, and manage maintenance. They can also deal with evictions and ensure your tenants are happy.
It’s their job to look after your properties on a practical level. They’ll help you run your properties on a day-to-day basis. This still impacts your return on investment by finding great tenants and managing rents.
Which Should You Choose?
Often, it isn’t a case of choosing one type of manager over the other. That’s because they do two different things.
The property manager handles the daily tasks required to run a rental property. If you only have one property, you only need a property manager.
Yet an asset management company manages bigger portfolios. They plan long-term and manage the financial vision for your whole portfolio.
Asset managers will make sure you get the best return on investment for your properties. They can also hire property managers and oversee them on your behalf.
Wondering “where can I find asset management near me?” Try Bellwetheram.com and check out their portfolio.
Get the Best of Both
Whether you have one property or several, you’ll need a property manager. This is especially helpful if you don’t live in the same city or state as your properties.
Do you have a large portfolio or a lot of commercial real estate? Add an asset management agent to your team. They’ll find ways to increase rent, cut expenses, and restructure your portfolio.
Keen to streamline your income? Check out our Finances articles for more tips and advice.