One of the most lucrative fields in many industries today is real estate. This business is loved by many entrepreneurs due to its massive potential and high asset value. Likewise, the availability of software has made commercial real estate asset management very easy for investors. Read on to know more about real estate asset management jobs and top-ranking companies.
What Is Real Estate Asset Management?
It is best to first define an asset to better understand real estate as one. According to the most basic definition, an asset is “anything of value or a resource of value that can be converted into cash.” The definition becomes more precise when viewed from a business perspective. Assets are reported on a company’s balance sheet and are acquired or produced in order to boost the value of the company or its operations. The process of increasing a property’s value and return on investment is known as real estate asset management.
Goals Of Real Estate Asset Management:
- Finding the highest and most reliable sources of income: Finding a property with the potential to appreciate significantly is always nice. However, a steady profit is just as crucial, if not more crucial, than a sizable one-time windfall. The highest possible stream of income is what reputable real estate investors look for in a property. Buying rental property is one smart way to achieve this.
- Reducing Expenditures: When you take operational costs, maintenance, closing costs, and taxes into account, maintaining a property can be quite expensive. Fortunately, there are several ways to lower the price of investment properties. For fix-and-flip projects, for instance, you can select the best-value contractors or obtain loans at reasonable rates.
- Risk management: All types of investments involve some level of risk. However, some investment properties carry a higher risk than others. Critical elements of real estate asset management include risk mitigation and planning for backup plans in case an investment doesn’t work out.
- Building a Portfolio: Ideally, the more you invest, the more money you’ll make. So, the main goal of real estate asset management is to diversify and grow your real estate investment portfolio strategically.
It is important to note that in real estate, asset management emphasizes maximizing the property value of the asset. This is done in the form of rental income. This has to do with services designed to increase and maintain the market value of an asset so that the owner can benefit from its returns. In real estate, asset management emphasizes increasing the property value of the asset.
What Is the Difference Between a Real Estate Manager and a Property Manager?
The asset manager is in charge of an investment property’s overall financial plan. A property manager is responsible for the day-to-day management of a rental property.
Commercial Real Estate Asset Management
Commercial real estate asset management refers to the organized, systematic activities and procedures that a business asset owner uses to manage their physical assets’ performance, risks, and costs throughout their lifetimes. commercial properties such as office buildings, residential buildings for businesses, hotels, resorts, shopping malls, etc. Two different asset types can be managed by a commercial property owner. Every fixed asset is typically affixed to a property. For example, furnaces, water heaters, air conditioners, other HVAC systems, fire protection systems, major devices, health and safety detectors, roofs, and so on.
Furthermore, it is the process of buying, selling, and holding assets in order to increase a property’s value and return on investment. Investments in commercial real estate assets are among the most common among real estate investors. Commercial property is any property they build with the intention of producing income. The following are some examples of the various kinds of commercial real estate:
- Hotels: Given that room rates can be changed to suit market demands, hotels present a unique opportunity. This is especially during recessions, which greatly impact the hotel industry, thereby reducing your return on investment.
- Multiple-family homes: These properties are classified as commercial when they have four or more residential units, which can be any combination of an apartment, duplex, condominium, or townhouse.
- Office properties: This could be a single, non-residential property for one tenant, an office building made to adapt to several tenants or even a skyscraper.
- Retail spaces: These can range in size from a small free-standing gas station or restaurant to something as big as a strip mall.
Real Estate Asset Management Jobs
Real estate asset management jobs are a growing sector of the job market. Your skills and experience are in demand from many quarters, and those with a history of adding value to real estate portfolios command exceptional salaries and packages. However, real estate asset managers are crying out for talent who can help them hit their targets. Here are some jobs in real estate asset management.
#1.Real Estate Manager
Real estate managers’ main duties include managing and supervising real estate, including both residential and commercial properties. Depending on the location they are in charge of, their duties may change, but they always try to increase the property’s value, find tenants and keep track of any necessary paperwork or records. Some property managers also handle bookkeeping, pay the property’s bills, supervise and train additional office staff, or perform simple upkeep tasks.
#2. Real Estate Associate
Real estate asset associates help buyers find properties and help sellers list properties for sale. They often work for large or small companies and work for either sellers or buyers. In both cases, they show buyers properties and assist their clients through the sales and negotiation process.
#3. Real Estate Appraiser
Real estate appraisers’ main duties include inspecting properties, defining their value, and communicating this information to their clients. Furthermore, real estate appraisers may work independently or under the supervision of a more seasoned appraiser depending on their level of licensure, which ranges from appraiser trainees to certified general appraisers.
#4. Real Estate Investment Consultant
The main jobs of real estate asset management and investment consultants are to advise clients on possible real estate investments, such as assets or potential building projects. They offer financial advice and conduct analysis on how profitable future development will be.
#5.Real Estate Broker
Real estate brokers’ main duties include finding motivated buyers, assisting buyers in finding properties that meet their needs, and helping sellers set prices that are constant with market values. State licensing is a requirement for all real estate brokers. While some real estate brokers supervise real estate agents who handle certain aspects of the buying and selling processes, brokers must personally oversee the transaction process to adhere to all necessary state rules.
#6. Realtor
A realtor helps buyers find homes or assists sellers in finding someone to buy their property. Realtors also have licenses to sell residential and commercial properties and must be active members of the National Association of Realtors.
#7. Real Estate Agent
Real estate agents’ main responsibilities include helping clients with the buying or selling of residential or commercial properties. In order to get approval to get clients for a home, they promote and tour properties for potential buyers, and work with brokers and financial real estate experts.
#8. Real Estate Attorney
In real estate asset management jobs, real estate attorneys have a number of duties, including checking contracts to make sure the terms are in the best interests of their clients. They are also familiar with relevant real estate laws. In addition, they could help to finish real estate deals or finish the process of closing the deal themselves.
Top Real Estate Asset Management Companies
Companies that offer real estate asset management services to institutional and other owners charge a fee for management services. Thus, employers team up with neighborhood communities, providing a wide range of housing options and services to a variety of tenants. Real estate investors’ job opportunities with developers are growing in both commercial and residential markets. More and more real estate developers are choosing to manage their projects, especially as the market for privately rented housing changes. Asset managers are becoming a key part of the life cycle of real estate development and management.
The Following Are the Top-Ranking Real Estate Asset Management Companies:
- CBRE: This company manages assets related to commercial real estate globally and has knowledge and information about all aspects of the market. They create solutions for clients of every size and sector. Additionally, they assist you in realizing the potential of property management. They help you to:
- Invest in real estate.
- Plan, lease, and occupy.
- Designing and building aspects
- Managing properties and a portfolio
- Transform business outcomes
- Cushman and Wakefield: This company analyzes economic and commercial real estate asset management activities, including supply, demand, and pricing trends at the market and submarket levels. They are some of the best real estate advisors and consultants.
- Savills: The company is among real estate asset management companies that are built on trust and integrity. Their intrinsic gives their clients and investors confidence to work with them.
- Jones Lang LaSalle is a global commercial real estate asset management company that was founded in the United Kingdom and has many offices across many countries. They are one of the world’s leading real estate companies that are powered by an entrepreneurial spirit.
- Newmark: Newmark is one of the largest advisory companies in real estate management. The company also offers a full suite of services and products, which includes investment sales. debt and structured finance, loan sales, agency leasing, property management, valuation, advisory, and loan servicing.
Real Estate Asset Management Software
1. Buildium
This software was specifically for the real estate asset management industry. Buildium automates the tasks necessary for this business. Consequently, you have more time to manage operations on the ground. This software can handle accounting tasks like managing budgets, providing information about the rent, and keeping track of vendor payments. You can also receive quarterly financial reports from Buildium as well. The software can securely manage bank accounts for real estate businesses and accept rent payments as well. Additionally, it can monitor and display business and personal expenses on a dashboard that is simple to read. This software is available for free through a demo account.
Pros
- It performs automation of various real estate business activities.
- It can receive, record, and manage online payments.
- The software is available for free through a demo
Cons
- The trial period is short
2. Rentec Direct
This is a unique piece of software designed specifically for real estate asset management companies. Rentec Direct is simple to use, easy to learn and comes with free customer support. It also gives you access to a general ledger for accounting needs. You can enter, view, and manage your company’s records using this facility. The ledger also functions as a kind of dashboard that gives you data on your tenants, rent history, and bank accounts. Rentec Direct also helps you perform automatic tenant screening. This software automates the receipt of rent payments and simplifies the management of the commercial real estate. Last but not least, this real estate asset management software enables you to store real estate business files in an online repository.
Pros
- It provides a general ledger fit for accounting records
- This software performs automatic tenant screening for you
- It supports multiple methods of payment
Cons
- It cannot be integrated with other real estate management software
4. Appfolio
With a focus on making your real estate business more profitable, this software is an ideal tool for the computerized enterprise. Appfolio delivers real-time financial and real estate management reporting. Furthermore, it provides you with a customizable dashboard that you can use for accessing strategic data such as employee performance statistics and property conditions. The software is accessible through computers as well as smartphone applications. In addition to that, Appfolio provides you with accounting data on the go. For example, it can send company metrics and maintenance details to you on a scheduled basis. The software is accessible for free through a trial demo.
Pros
- This software maximizes business mobility
- It delivers business information through a customizable dashboard
- It can be accessed and manipulated through a smartphone application
- The software is accessible for free through a trial demo
Cons
- It is fairly expensive
5. Cozy
With a wide collection of features, this software makes it possible for commercial real estate owners to develop and manage rental properties in an easier way. Cozy provides tools that you can use to manage your rental property, analyze tenants and make rent collections. they can perform all the activities all in one convenient dashboard. This commercial real estate asset management software also provides a complete file management system that can store real estate business documents. Furthermore, you can track expenses and make requests for maintenance right through its dashboard which can be accessed online. The best feature of Cozy is that it is free.
InvGate Assets covers all the essential software and hardware bases for tracking assets and inventory and doing so with an easy installation and easy-to-use interface, making it our choice for the best asset management software for small to medium-sized businesses.
Pros
- Quick and easy setup
- Straightforward and easy-to-follow navigation
- Alarms can quickly show problems with assets
- Reasonably priced for small to mid-size businesses
Cons
- Limited reporting
In summary, real estate asset management is essential to be successful in the real estate industry. Most real estate investors do at least a minimal amount of asset management themselves, but larger entities or experienced investors may enlist an asset manager to handle their investment portfolios. Essentially, real estate asset management is both a skill set and a career.
Related Post:
- Portfolio Management: Definition, Types, and Salary
- ASSET MANAGEMENT: Overview, Groups, Company Stocks
- What Is Property Management: Meaning, Types, and Guides.
what are the cores of real estate asset management
- optimizing revenues
- risk management
- reducing expenditures
what is the jobs of a real estate asset manager
- cash flow management
- finding lenders
- assist in property transaction
- negotiating property agreemnets and lease
- developing a budget
who is a real estate aseet manager
a real estate asset manager is someone who engages real assets for clients.