Often confused with property management, asset property management is completely different. Managing property is simple; you manage tenants and collect payments. The process of growing funds for investors is the type of company you need. This can be achieved in a number of different ways, but the fundamental tenet is that the money from investors grows in the process. Asset Property Management includes taking care of the administrative, financial, and maintenance of the investor’s properties. If the company you are considering does not provide all three functions, then they are likely not interested in growing your money.
Administrative functions of the company include such things as minutes from meetings, documenting who is responsible during projects, and developing contracts. Typically, anything involving paperwork that is non-financial in nature will fall under the category of administrative management for the company. You should choose a company that is capable of streamlining this process for you. Integration of functions is optimal for efficiency.
Financial management of investor funds can involve a wide variety of tasks. Most importantly, it means the Asset Property Management company is accountable for the performance of your funds. The company will maintain budgets and collections as well as deliver financial reports, either quarterly or annually, depending on their process. Financial management is exactly what it implies; the company manages funds associated with the property.
Maintenance functions, such as repairs, housekeeping, and maintaining security, all fall into this category. Your asset management company should manage all of these functions without any input from you. Maintenance is a common function of property management companies; therefore, do not be misled. Make sure all functions are offered, and the company demonstrates the ability to make you investment grow. This can be through appreciation or through a return on your money.
Finding a reputable asset management company is difficult, but armed with the basics, you will be able to distinguish between an asset management company and a property management company. When you find a company you are interested in, check their ratings with the Better Business Bureau. You want to make sure the company is reputable and a good fit for you overall.