Any experienced property manager will tell you that adapting to the industry’s constantly evolving landscape is the most vital aspect of the job.  Swiftly navigating this ever changing environment– and therefore maintaining financial returns– requires the ability to set and meet long-term goals.  This is where property management overlaps with traditional asset management and a top-tier property management company offering fully integrated services eliminates the distinction. Indeed, it is the boots on the ground and deep familiarity with a property and its earning capacity that gives important asset management perspective to a property manager.

While there are still some “old school” managers who believe their only responsibilities are to maintain the property and collect rent, the modern property manager is continually working to assess and improve the financial performance of the assets they manage.  Their goal in investment analysis is simple: maximize the revenue potential of the property and identify new methods of creating longer-term additional value in the asset.

Top property management companies serve as your long-term partner with a shared interest in maximizing investment potential. As a partner, the property management company will regularly analyze key performance metrics for your asset and prepare long-term financial forecasts, perform cash flow analysis and understand the internal rate of return for your investment and how to improve it. As part of this analysis, your property management company can perform due diligence for the acquisition or disposition of your property and provide actionable recommendations. Knowledge of property value and specifically how upgrades and renovations can increase returns means that your property manager can provide excellent advice for whether and how, further investment can reap additional rewards and over what time period.

In addition to this analytic and advisory role, a top property management company can make introductions to lenders or investors so that you can expand your portfolio. As part of the package, a property management company will help increase the value of your asset with effective marketing either as a property to be leased or sold. Finally, as your partner, a good property management company can even negotiate on your behalf to get the best terms for your purchases or sales of property in your portfolio.

The best property managers have the ability to take a step back and understand real estate strictly as an investment– in other words, they understand how to think like an asset manager.  The adeptness with which a property manager can streamline operations and reposition a property determines how drastically costs can be cut and income can be increased.  Ultimately, the better one understands the financial health of the property, the more effectively one can create and execute to achieve the highest possible return on investment.