Do you have a Property Manager or an Asset Manager? What is the difference?

A Property Manager is a manager of property, manages tenancies, arrears, maintenance, and just does the tasks as required more or less on a reactive basis. An Asset Manager is a manager of your asset that strategically looks at all aspects of your property and looks for ways to get better results from that property through a proactive approach.

What kind of manager do you have managing your investment property? A Property Manager or Asset Manager? Asset Managers are few and far between. Typically there are plenty of Property Managers out there however there are a few that look at your investment property journey as one to manage to get the best return on investments for their clients. It’s like any other investment is must be managed in a way that actively seeks to increase profit, reduce risk and expenses. I liken this to managing a budget and maintenance for a large scale Commercial portfolio, it needs to be viewed in the same light. No mater if you have a $200,000 investment property or a $2,000,000 one its the same.

Manage the tenancy to gain optimal cashflow with market reviews (rental increases to market value), preventative maintenance, budgeting for capital works (future work required to increase the value of the investment) and budgeting for expenses (loan repayments, ongoing maintenance, outlays etc).

You need to question, is your Property Manager doing this for you? Are they capable of this? What’s your return on investment? Are the numbers stacking up? If not why not and can they be improved, is your manager helping you achieve your goals?

All key elements that an effective Asset Manager AKA Property Manager should be delivering.

Food for thought.