Asset Management and Property Management are often times confusing to distinguish between the two. Let us explain how Capital Rivers defines the difference between Asset and Property Management and the impacts they have on your investment throughout California. In the simplest form, Property Management is the management of the physical asset and should be the first point of contact for tenants and vendors. Asset Management encompasses the financial and economic values of the asset. An Asset Manager should focus on strategically improving the financial performance and investor objectives of a real estate asset through its life cycle.
Asset Management is management of an investment.
A focus on strategically improving the financial performance and investor objectives of a real estate asset through its life cycle.
Property Management is the management of a physical asset.
The primary point of contact for tenants, as well as the party responsible for preliminary budgeting, accounts receivables, accounts payables, obtaining competitive pricing from vendors and overseeing onsite personnel.
In summary, the distinctions between Asset Management and Property Management lie in their respective domains within real estate investment. Property Management deals with the physical asset and serves as the primary contact for tenants and vendors, handling basic budgeting and onsite personnel oversight.
Conversely, Asset Management navigates the financial trajectory of the asset, aiming to enhance its financial performance and align with investor objectives throughout its life cycle. The synergistic coordination of both realms is crucial for augmenting the financial viability and operational smoothness of the real estate asset, thereby fostering a well-managed and profitable investment portfolio.