Are you a property owner looking for the best way to manage your properties and assets? Or a high net worth individual (HNWI) looking to grow your real estate investment portfolio? If so, property management can help you track all of your assets and optimise the performance of your real estate properties.
Managing properties encompasses various activities such as record-keeping on an entire property portfolio, market research on current property values, or analysis of property performance reports.
Being an exhaustive task, it’s expected that property management comes with challenges. According to a 2023 Survey by the US National Apartment Association, 76% of property owners cited operational efficiencies as a primary challenge, and 61% cited maximising revenue and profits as another major hurdle.
In this article, you will learn the basics of asset property management, understand the real estate management process and challenges, and follow an easy seven-point guide to successfully managing your properties to grow their value over time.
What is Property Management?
Property management involves handling various aspects of a property’s life cycle such as property maintenance, financial management, compliance and legal, marketing and advertising as well as vendor management, according to Glide Property Management.
Asset property management can help you determine the worth of your real estate through regular evaluations of its current value. Property valuation considers factors such as market conditions and any improvements made to the property.
Responsibilities of A Property Manager
An asset property manager generally takes care of an individual investor’s properties or a business-related real estate holding, says Indeed. Here are a few responsibilities of a real estate investment manager:
- Handle the day-to-day operations of the real estate
- Keep up-to-date records of all the properties
- Manage the account and finances of a property
- Store and organise property-related documents such as contracts, legal agreements, and insurance policies
Why is Property Asset Management Important?
One important benefit of managing properties is value preservation. This is done by performing regular maintenance on your property while enhancing its condition to retain its value over time.
By effectively managing your real estate assets, you can:
- Facilitate data-driven decision-making for property investors and owners
- Introduce strategic improvements to preserve your property’s appeal and market value
- Prevent the wear and tear of real estate assets
- Protect your properties’ information for easy data retrieval
Additionally, asset property management supports maintenance and improvements that build successful and profitable real estate assets, as referenced in a publishing platform, Medium.
Common Methods of Real Estate Management
Effectively managing your asset properties is crucial in growing their value over time. Below are various strategies that property managers and investors commonly utilise in asset management and real estate.
Spreadsheet Real Estate Management
This method relies on spreadsheets to organise, analyse, and manipulate data in a tabular format. It involves creating a detailed list of information such as property addresses, purchase prices, and current market values.
One of the advantages of using spreadsheets to manage your real estate is its affordability, making it a suitable choice for small asset property management operations with budget constraints.
However, one of its challenges is its lack of automation features, resulting in more manual data entry and a higher potential for errors.
Property Management Software
Property management apps provide a centralised platform that streamlines the management of your real estate properties. This method enables you to efficiently handle property-related tasks, such as maintaining property records and digitally storing lease agreements.
By utilising real estate management software, you can save time on manual processes and focus on maximising your property’s efficiency and profitability.
The downside is that some software may not scale effectively as the number of your properties or the complexity of your management tasks increases. This is why looking for the right property management platform in the market is crucial to effectively managing your investment.
How to Manage Your Property Better in 7 Steps
Effectively managing your property ensures optimal performance and value. Here are seven essential steps to guide you through the property management process.
Step 1: List Property Information
Build an inventory of your property portfolio. This should include the location, property type, lot area, and the number of rooms.
To streamline the management of these details, use a spreadsheet or property management software to create a centralised record of all your properties.
Step 2: Store Documents and Legal Information
Aggregate and securely store all relevant ownership documentation. This should include your title deeds, purchase agreements, and legal correspondence for organised and transparent property management.
Storing documents makes it easy to find files quickly and ensures property compliance, which refers to all local laws about property construction, usage, and maintenance.
Step 3: Record Property Finances
Create documentation of all your financial transactions. This should include the purchase price, mortgage details, and insurance policies that ensure transparency.
For continuous monitoring of your financial performance, ensure your documents such as income statements, property revenue and expense sheets are regularly updated.
Step 4: Conduct Routine Inspections for Property Maintenance and Repairs
Document all maintenance and repair activities to ensure your property meets usage needs. This should include recording service contracts, warranties, and other associated expenditures.
This step also involves scheduling routine inspections, which preserves the condition of your property.
For example, a site inspection is done by visiting the property to assess its condition. By conducting a site inspection, you can identify any property-related issues or opportunities. This method helps to quickly deal with property issues, like property damages.
Step 5: Track Property Operational Expenses
Keeping a detailed record of utility bills, payment history, and property-related expenses is essential for monitoring operational costs. This helps you assess resource usage and optimise management for greater cost efficiency.
This approach involves monitoring regular costs like electricity, water, and gas. It also concerns keeping track of payment dates and recording other daily asset property management expenses.
Step 6: Conduct Property Market Research
According to the global learning and development company, Insights, performing market research is essential to understanding the value of your property and keeping up with the evolving trends within the real estate industry.
This process involves documenting property valuations to assess your property's worth, considering factors such as location, condition, and market demand.
Additionally, the documentation of risks and returns plays a crucial role in making informed decisions. This information allows you to navigate market fluctuations and maximise your investment portfolio.
Step 7: Regular Financial Reporting and Analysis
Assessing financial reports to understand your property's financial status includes analysing performance metrics. This includes your net worth, showing the current market value of your property minus liabilities like mortgages and loans.
Additionally, property acquisition costs refer to the expenses associated with buying a property, said the European Association, Inrev. These expenses include the property price, transfer tax, and legal costs.
Knowing the property acquisition costs will help you understand the upfront financial requirements for a new investment.
Best Practices for Managing Properties
Here are some strategies to help you stay organised when managing multiple real estate properties.
Keep Detailed Records of Your Properties
Keep all information related to your property, including deeds, titles, and other relevant documentation in one place. This can facilitate the traceability of property ownership, help you monitor changes over time, and ensure a transparent historical record for future reference.
Use Tools To Manage Your Properties
In the process of managing your property, utilise tools or advanced technologies, like MyAssets, an asset management software. This tool can centralise data storage and make your property management more efficient. It also allows you to organise and access critical information and, at the same time, provide insightful reports that will help you make informed decisions.
Stay Updated About Local Zoning Laws and Regulations.
Familiarise yourself with any changes regarding local zoning laws and regulations that may impact how your property is used or developed. This will help you in making decisions when maximising your property’s value and how to manage them.
The Ultimate Goal of Property Management
Managing your property is essential for optimising the value and performance of your real estate investment. By practising record-keeping, property valuation, and regular maintenance, you can protect your investment and grow your real estate portfolio.
Property management is a relevant process to ensure property is monitored and well-accounted for. You can manage tasks efficiently by utilising tools like spreadsheets for tracking basic information while specialised property management software for more complex tasks. These practices help property owners navigate the real estate market effectively, ensuring resilience and success for their property portfolios.
Property Management: Frequently Asked Questions
1. Why is property management important?
Managing your property is important because it maximises the value and income potential of your assets while minimising risks and expenses for property owners.
2. Who are property managers?
Property managers are professionals who work across the fields of commercial or residential property management. On behalf of investors, they manage real estate in the private rented sector (PRS), office buildings, shopping malls, or other shops in the public and social sectors.
3. How does property management work?
Property management works by understanding that the process involves a property manager handling the operations, control, and monitoring of various assets and investments to maintain the portfolio’s value while generating profit.
4. What are the benefits of using property management applications software?
Using property management application software provides streamlined and efficient management of real estate assets, offering benefits such as enhanced organisation, accurate record-keeping, and improved decision-making for property owners and managers.
Streamline Property Management with MyAssets
Streamlining activities in property management is essential for efficiently managing your portfolio and maximising its value. This can be simplified with the help of tools like MyAssets.
MyAssets’ intuitively designed web and mobile platform simplifies the entire process –from documenting property information and organising them in one central location.
With easy access to all your assets, MyAssets simplifies management, helping you make informed decisions and track your portfolio’s performance over time.
Experience the seamless property management capabilities of MyAssets firsthand. The platform can be explored in detail at app.myassets.com.
