Since only 63% of Americans own real estate, it's a widely coveted investment. If you can afford to purchase a home or commercial property, you're in luck - it's a great opportunity to generate some passive rental income.
Real estate asset management can help you thrive, so read on to learn some best practices that professionals implement.
What Is Real Estate Asset Management?
Real estate asset management involves managing rental units to maximize their value. They develop economic strategies for your rental unit based on current best practices.
Professional property managers have the experience and knowledge needed to help you mitigate the risks that come with real estate investment.
The goal is to improve your ROI and get as much money as possible. Experts aim to ensure that landlords reap both long-term and short-term profits.
Portfolio Management
Property portfolio management is an aspect of managing real estate assets that involves finding new investments.
Experts look for properties in your price range and intended investment area. They identify good opportunities to expand your portfolio with both residential and commercial real estate.
They do this by:
- Monitoring the current market
- Look into market forecasts
- Evaluating the properties they identify
- Ensuring diversification
- Making sure that each property helps your overall portfolio grow
Property Analysis
Once experts identify lucrative investments with real estate management tools like Market Value Analysis (MVA), they'll look more deeply into those investments. This means performing a rental analysis and creating a free report for landlords.
This report includes:
- Information on the property's condition
- What amenities could make it a better investment
- A suggested rent range that you could charge
- Market data about the property
This is an important facet of property investment risk management. Real estate asset management professionals will also perform free rental assessments on properties that you already own so you can understand your full portfolio thoroughly.
Decision Making
Asset managers also make decisions about the properties you invest in. They'll suggest actions including:
- Buying
- Selling
- Refinancing
- Holding
- Flipping
- Improving amenities and features
Of course, the landlord owns the property and gets the final say in what to do with it. But professional decision-makers take some of the landlord stress out of managing your individual assets. This lets you focus on growing your portfolio and retaining great tenants.
Property Upkeep and Updates
Asset managers oversee maintenance and repairs. They take care of requests from tenants to ensure that the property is in good shape.
This keeps renters satisfied so they're more likely to re-sign leases. You won't need to contend with as much vacancy.
Additionally, asset managers will identify strategies for long-term improvement. They may suggest add-ons to your home or commercial property like patios or sunrooms. These can boost your property value so you can collect higher rent.
Invest in Professional Real Estate Asset Management
Now that you know how to make the most of your New Orleans, Louisiana property, it's time to invest in quality real estate asset management services. PMI New Orleans is committed to offering a wide array of services including property marketing and tenant placement.
We're also excited to help you manage your portfolio as well as the financials of existing investments. Schedule a free rental analysis today to learn how much you could profit from your LA rental.
