Property Asset Management is a distinct form of property management that focuses on adding value to real estate investments. While traditional property management deals with the day-to-day operations, asset management aims to increase long-term investment value. It involves strategies and skills to manage property interests, reduce costs, and maximize returns.
The goal of Property Asset Management is to unlock hidden value within a property interest by considering market values, property ownership, and tenancy value. While reducing costs is a byproduct, the main focus is on increasing the property’s value over time. This approach applies to both commercial and residential properties, with a particular emphasis on larger multi-let and mixed-use schemes.
Asset Management differs from Property Management in that it takes a long-term, value-driven perspective. Property Management deals with immediate concerns like maintenance, compliance, and rent collection, while Asset Management looks beyond these basics. It considers factors such as lease negotiations, optimizing rental returns, and exploring alternative uses for the property to achieve greater market rates and returns.
To implement an effective Property Asset Management strategy, it is crucial to define clear goals, whether they involve increased value on paper or higher rental returns. A well-defined plan with a realistic timeframe is necessary to guide the process. It may be beneficial to seek external advice from experts in property and market matters to uncover unique opportunities and perspectives.
Property Asset Managers play a vital role in overseeing the long-term goals and value-driven approach of asset management. They work closely with Property Managers to ensure a comprehensive understanding of the property and its potential for investment. While the roles can overlap, Asset Managers possess additional expertise, professional experience, and industry contacts to provide comprehensive investment advice.