To be a good asset manager in the real estate industry one should have the skills to improve your multifamily property. The main goal of any asset manager is to increase their NOI (Net Operating Income) to generate maximum return on investment on their multifamily apartment building.
People always mistake Property Management with Asset Management when the former is the subset of the latter. Property Management is just restricted up to maintaining the multifamily property, collecting the rent etc, whereas Asset Management is all about adding value to the multifamily housing.
Asset management is the most important part of any multifamily property investment business. It could be fun if you are more creative with new ideas that help raising the rent as well as decrease other costs. Whenever you are planning to invest in a multifamily property, you must always review the property from the Asset Manager’s view.
It’s just not about buying the property instead it’s your investment.
So when looking at potential deals always considers the returns you would get in such investment. Always try to find the ways to improve the multifamily housing and how can you add value to the property when investing in any multifamily property.
There are mainly 4 factors to consider when you are managing any multifamily property as below:
1) Property Management:
Once you invest in some real estate property you always need to manage it properly. Whereas when it comes to commercial property such as multifamily, the role of the property manager increases even more. The property manager is responsible for collecting the rents, increasing the occupancy rates and managing all the expenses by maintaining the overall accounts.
Sometimes when you invest in some very old properties, there is always a requirement to change the overall appearance, reputation and image of the property. This may involve some further expenses if you are wholly renovating the overall property. There is always a need to improve the reputation of an old multifamily property when you are investing in such a property to gain more returns.
3) Adding Income Sources:
When you invest in a commercial property such as multifamily property, there are always new ways to add new income sources to the business other than the rental income. You can provide onsite laundry services or even place vending machines whichever may be more comfortable and affordable for you. Other than that you can also offer cable or internet services for all the tenants in the multifamily property. Besides these you can even provide childcare facilities or even storage options. You can think of any other ideas that could help adding a new income source to your multifamily property investment.
4) Reducing Expenses:
For any kind of business or investment, it’s a must to find ways to reduce extra expenses by eliminating all the unnecessary costs. This doesn’t mean to compromise somewhere in the safety or security of the property. You should find the ways to reduce expenses in those areas where the costs can be optimized well. One of the best ways to reduce expenses is to using standard quality materials in the multifamily housing which lasts longer. Trying to reduce the expenses, you must always remember that it’s your responsibility to provide the safe and secured housing to your tenants and yourself.
If you keep the above factors in mind while evaluating a multifamily housing for sale, you can easily make out whether investing in such a deal is worth in the long run or not. Even if you already own a multifamily property, you can find new ways to add value to your property. Proper management of your assets will guarantee the best ROI of your property.