Asset management has always been a valuable skill, but in light of the effects of COVID-19, more and more real estate investment firms are either evolving or completely retooling their asset management functionality.
In multifamily real estate, we need asset managers for their keen sense of upside value-add and of course, downside financial protection. Asset management is truly one of the most valuable and interesting roles in real estate, and although our team at IBR is already well aware of this, we’re glad to see these roles being highly regarded across the board as of late.
Our efforts at IBR have led us beyond the traditional “income statement” manager to evolved examples of adding value for a multifamily property. Some of the most curated examples include creating community garden spaces that all residents can participate in and benefit from in terms of curb appeal or creating community-centric events that make sense for residents. If a property houses mostly lower-income families, a good asset manager knows how to tap into that specific audience and create an interaction that benefits the resident—such as educational events on financial literacy and mock-interviews for employment in the larger community. Some multifamily firms mistakenly believe the above is the exclusive domain of the property manager. It is not.
Likewise, on the expenses side of asset management, a great asset manager (not solely a marketing director) will pay special attention to things like marketing execution and how to best spend the marketing budget. From a paid social media strategy to a great website, the right marketing efforts can truly set your property apart from your competition. To be fair, this includes tracking results/ROI. Your asset manager should also constantly be looking to control operating costs.
The examples above are in addition to all of the traditional and expected duties of utilities, insurance, taxes, rental rates, income, collections, IRR’s, waterfalls, etc.
When you’re ready to take Asset Management to the next level, let’s talk.