What You Need to Know about Asset Management
What is asset management?
A timeline for an investor to ensure that a particular plan is in place for a property or project. This plan is followed until the completion of the sale. Asset management planning commences as soon as you underwrite a deal. It is formulated early on, as you evaluate a property. Be careful to not confuse asset management with property management. Most of the time, when you asset manage, you normally have a property manager in place. As an asset manager, you are responsible for creating a project plan and making sure the plan is followed thoroughly from all parties involved to ensure target goals and deadlines are met. This plan is important so that the property management company understands your project goals.
What is an asset management plan?
An asset management plan is a document provided by ownership for the purpose of easily explaining and summarizing the operational strategy and plans for the property management company
Each asset management plan includes key items that should be followed by the property management company
Renovation plans and timelines
Pro forma/ operating budget
Overview of value-add plan
Key contacts for all involved parties to enhance communication
The asset management plan sets expectations for all parties involved, allowing them to understand your goals, hit your deadlines, and work effectively toward completion. Don't forget to save your plan in one place to share with your team.