Is Asset Management the New Property Management?
At Real Property Management, you’ll hear us use the term “asset management” – this is not to be used interchangeably or confused with “property management”. However, If you think of the two terms like a staircase, asset management is 10 steps ahead of property management. We’ll explain…
What is Property Management?
Property Management is the management, maintenance, operation, and oversight of a property whether it be commercial, land, residential, retail, or industrial real estate. The process works to preserve the value of the property, saving the investor hassles and time and is typically transactional and reactionary. Notably, Real Property Management focuses on residential property management.
Property Management services may include, but are not limited to:
- Accounting
- Marketing
- Maintenance
- Compliance
- Tenant management
- Property inspections
- Property showings/viewings
- Tenant and vendor screening
- Tenant evictions
- Pricing and rental market analysis
- Staying up to date (and adhering to) rental legislation
There are two primary methods of property management, (1) in-house, and (2) outsourcing property management. Apartment buildings are a great example of in-house property management. An apartment building is owned by one entity (organization or individual) with in-house property management services for the entire building. Outsourcing involves a property owner outsourcing property management service(s) to a third party. For example, say you own a condo and don’t want to deal with the hassle of maintaining the condo and finding tenants. This would be the perfect opportunity to outsource property management services to a third party!
You can learn more about the property management services that we offer, here:
https://www.realpm.ca/expert-tips/why-should-i-hire-a-property-manager
What is Asset Management?
Asset management may sound like a fancy term we made up but trust us – it’s a real thing! Asset management uses actionable results-driven data, rental analysis, and expertise to maximize your asset and portfolio; it is goal and visionary driven.
You know how we mentioned asset management being 10 steps ahead of property management? We weren’t kidding. Asset management is property management plus additional benefits that come as no additional cost to you, the investor! Here are some asset management services we offer:
- We treat your property as if it were our own!
- Access our network that spans from coast-to-coast, with 19 offices across Canada (and plenty more in the United States). The fundamental services you receive in one location are translated across the country, so no need to shy away from out-of-province investing when the Real Property Management team has got you covered!
- We choose vetted vendors so there are no surprises when it comes to maintenance. Our outsourced team of vendors has been vetted and verified.
- We live and breathe the rental market every day and want to share our expertise and network with you. Whether you are looking for a mortgage broker, realtor, lawyer, or accountant – we’ve got suggestions!
- We conduct rental market analyses. We regularly assess whether your property is maximizing its full potential rental income. If it isn’t, we examine and streamline methods to improve.
- We offer methods to improve your asset to build your real estate portfolio. For example, is now a good time to refinance? Is a short- or long-term mortgage preferable? Is it a buyer’s market? Are neighbouring communities forecasting growth? What are the up-and-coming neighbourhoods?
- We talk candidly about your goals as an investor. For example, are you hoping to pay for your childrens’ university tuition? How does a rental property fit into this equation? Are you planning for retirement? Are you searching for short-term financial solutions? Whatever your goal is, we’ve got you covered. No goal is too big, so let’s aim high together!
To put asset management into perspective…
Think of an Asset Manager like a Financial Advisor. A financial advisor works with clients to provide guidance, management, and advice that helps to maximize their financial portfolio. The client’s goals are achieved through a combination of financial strategies, personalized planning, and up-to-date market knowledge. The advisor-client relationship is successful once trust and a healthy, open, line of communication have been established. Asset Management is similar but utilizes a combination of property management and advising to maximize an investor’s real estate portfolio. For example, we’ll place premium quality tenants in your property and handle maintenance issues, and will also study local and national rental analysis and trends to inform you when your property equity may have increased, leading to an opportunity to refinance and obtain cash at closing. As a result, investors have the option to repeat the process through the BRRRR method and maximize their portfolio to achieve their real estate and financial goals.
Conclusion
At Real Property Management, our goal is to help maximize your portfolio so you can achieve financial freedom. Through property management and asset management, we’re the team that doesn’t back down from a challenge! Let’s start your journey today!