In the past, the roles played by property managers versus asset managers were distinct. While property managers held the responsibility of overseeing rent collection, lease administration and maintenance (among other roles), asset managers dealt with the strategic, financial side of commercial property ownership. These days, the lines between the two roles are less stark. Why?
Good property management requires a strategic and tactical approach
In the past, property managers were tasked with the tactical side of property administration. Property managers would liaise with staff and contractors. They’d carry out risk management by enforcing building rules and contractual obligations of tenants.
Yet more and more commercial property owners are seeking property managers who can also provide strategic assistance. Owners seek individuals who can help them maximise returns on their property investments.
Good asset management skills help raise net property income
Commercial property owners are employing property managers with finance or asset management experience because these professionals can capitalise on earning potential. They have the skills required to conduct financial analysis and make recommendations for how to get the best out of a commercial property.
Combining roles takes care of day-to-day and long-term management
A further advantage of combining property and asset management is that it becomes easier to take care of day-to-day and long-term management. Property managers may ensure continuous cash flow through rent collection, but asset managers have the skills needed to focus on ways to maximise cash flow.
A single manager who can take care of both short- and long-term goals on behalf of owners simplifies property investment considerably.
Additional skills asset managers bring to property management
The additional skills asset managers employ when managing property include reducing operational costs, increasing revenue, creating financial forecasts and risk profiles and more.
Asset managers can also determine how best to use commercial property space that is under-utilised so that a building generates the maximum amount of revenue possible. These strategic capabilities are essential to thinking of property as an investment and finding ways to make this investment do more for property owners.
Multi-role managers can perform property marketing, too
Many management professionals are realising the value of fleshing out their skill sets with both property management skills (such as people and risk management) and asset management skills (such as negotiation and marketing).
While some professionals prefer to work in one or the other area, having the flexibility to move between these different roles makes you an asset to busy property owners who’d prefer to avoid the expense and time commitment of liaising with separate property and asset managers.
Because this combined skillset is more rare than professionals who focus on one or the other area, more managers are taking the time to round out their CVs with skills applicable to both types of property management.
There’s no question that the expectations of property managers and asset managers are ever evolving as the lines between these two roles merge, but so too are the expectations of both the owner and the tenant. Are you looking to purchase or lease commercial property?
Contact us today – our managers will streamline your operation as an asset.