With buy-to-let purchases on the rise, and the rental market as strong as ever, many individuals and businesses with property portfolios have been seeking the counsel of expert property asset managers to maximise the potential of their portfolio. But what is asset management, do you need to consider it and – most importantly – what constitutes a good asset manager?
What Is Property Asset Management?
Property Asset management is the process of managing your portfolio of properties in order to maximise its potential. This can involve the increasing of rents at opportune moments, undertaking work to boost the value of your assets, investing in new properties, or knowing when to let properties go from your portfolio.
Many people consider asset managers in the same vein as financial advisors, but it’s critical to draw a clear distinction. If IFA’s are architects then good asset managers are your engineers, practically working with you to ensure that your property machine delivers. Unlike an IFA the asset management team here at Centrick provide a unique insight into your portfolio that goes beyond performance in the here and now, understanding yields and performance as well as practical tenant and property considerations as well as combining robust market knowledge. We’re not simply looking at the market but actively impacting the day to day operations of your BTL portfolio from new, upcoming and/or off-plan developments that would complement your goals, to how to optimise your portfolio, we’re your eyes and ears on the ground and our in-house sales and lettings support no matter what you choose to do with your units.
Do I Need Asset Management?
If you have a portfolio that you plan to grow, want unique insights into how to make the most of your portfolio, or you’re currently struggling with time and resource to keep your portfolio running smoothly, you could benefit from the assistance of an asset management service. If you have a specific goal you wish to reach within a certain timeframe, or have trouble setting goals for your portfolio which is resulting in stagnation, you could also find the support of an asset manager particularly beneficial to your business.
What Makes A Good Asset Manager?
If an asset management service sounds like something you wish to explore, it’s imperative that you understand precisely what constitutes a worthwhile asset manager. That’s why we’ve listed five key points to consider when searching for your next asset manager:
Point One: Do They Provide Hands On Support?
The primary purpose of an asset manager is to provide support and guidance that directly benefits your investment portfolio to ensure that it performs to its best potential. From tenant issues to planned maintenance and upgrades, a good Asset Manager will genuinely support your practical portfolio as well as optimisation of results.
Centrick’s asset management team combines decades of knowledge from within the property sector, with an astute comprehension of current and future market trends, to provide you with evidenced, practical support that – most importantly – yields tangible results.
Point Two: Can They Help In Diversifying Your Portfolio?
One of the areas you may want to discuss with your asset manager is the shape of your portfolio today and whether it meets your long and short term needs. In short, this could mean making sure that your portfolio contains variation so that if one property-type or neighbourhood becomes less desirable, your complete performance doesn’t suffer. It could also mean looking at consolidation and even in some cases offloading properties that aren’t giving you the results that you need.
Portfolio diversification allows your property to stand the test of time, and offers maximum portfolio security. A good asset manager such as Centrick will go one step further that merely advising portfolio diversification: they will provide an analysis of your existing portfolio and point out areas for improvement, whilst explaining the potential long-term benefits this could have.
Point Three: Do They Possess Deep Property Expertise?
We’ve seen already the difference between property asset management services and the benefits of a financial advisor. A good asset manager should be able to add value to your portfolio in a different manner when compared to a financial advisor by offering building and property knowledge that traditional IFA just simply wont be aware of.
Aside from the building and “bricks and mortar” knowledge a good property asset manager will also take the hassle away from the day to day running of your portfolio, working with internal or any existing agents you have to maximise the returns through practical, real-world actions. Safe to say then that your property asset manager should be able to provide you with expert property insights that go beyond financial and economic parameters.
Point Four: Do They Have A Track Record Of Improving Portfolio Health?
Providing clients with support is one thing, but producing tangible, visible results for a client’s portfolio health is the ultimate goal of any asset manager. This can constitute the following positive steps forward for a property portfolio:
- A reduction in void periods between tenancies
- Diversification of your portfolio to ensure long-term security
- An increase in overall profit
- The sale of units that were not benefitting your portfolio
- More free-time for you as you feel your portfolio is being handled and taken care of by a trustworthy professional
- A better understanding of your portfolio and its trajectory
- Reduction in stagnation, and a feeling that your portfolio is moving in the right direction and maximising its potential
Point Five: Do They Have Sales And Lettings Connections?
Lastly, the close involvement of your asset manager with a sales and lettings team can amplify the existing benefits of an asset management service. For example, having a quick and easy referral to Centrick’s Sales Team when offloading parts of your portfolio, or using Centrick’s Lettings Team to find a new tenant allows you to keep all of your property related matters in-house. Or for larger portfolios knowing that our in house Building and Estate management team already look after more than 20,000 homes is a massive plus! This makes communications between teams much more streamlined, which can result in a quicker turnover, and can even save you money in the long-run.
Thinking Of Hiring An Asset Manager?
Centrick’s Asset Management Team provide a truly unrivalled service for our clients which translates into real results. Our track-record for improving the health and performance of our client’s property portfolios makes us one of the most trusted asset management companies in the region, with our clients returning to us again and again for our insight. Whether you have a complex mixed-use portfolio, a growing local portfolio, or you wish for a team of experts to help you handle your existing properties, we have an option for you.
Want to learn more about the difference Centrick could make to your property portfolio? Check out our other informative blog pieces here, or contact a member of our team for more tailored advice using the form listed below:
