Asset Management and Property Management – They sound like similar terms, but are vastly different in the types of services performed for real estate properties and their investors. Both functions are necessary and important, but understanding the difference could help you select Certified Residential Management Group as the most qualified “management partner” for you and your properties.
Asset management is centered on financial matters such as maximizing the return on investment and improving the market value of the property. Asset management focuses on “investment level” functions such as:
- Preparing long term financial forecasts and pro-forma analysis
- Performing cash flow analysis and computing internal rate of return
- Perform due diligence for acquisition or disposition of property and to provide alternative scenarios
- Determining value of a property and what can be done to increase the value
- Providing essential documentation to lenders
- Developing and implementing a maintenance and/or capital improvement plan
- Managing the “investment” on behalf of the investors.
Asset management is more of a process with the goal of enhancing value and maximizing return to the owner. Asset management is a process that takes place over the life cycle of a property (i.e. from acquisition to disposition).
Property management focuses on the day-to-day operations of the property such as physical maintenance, repairs and renovations, rent collection and payment of expenses, for example:
- Maintenance of the property and facilities
- Renting of residential units
- Billing and collecting rent and other charges
- Working with staff and contractors
- Dealing with resident, tenant and guest issues
- Enforcing rules, regulations, covenants, guidelines
- Management of risk and safety issues
At Certified Residential Management Group, we provide both Asset and Property Management Services for investors in residential income properties. Our “certifications” and experience in this industry have provided us with operational aspects of property management combined with an investors view to maximizing asset performance and overall investment return.
Put our years of experience to work for you – Let us be your “Trusted Partner in Residential Management”- Learn More