Advertiser Disclosure

advertising disclaimer
Skip to main content
charts and graphs

Real Estate Asset Management Explained

An experienced real estate asset manager can help you improve the performance of your investments.


[Updated: Mar 03, 2021 ] May 29, 2020 by Liz Brumer
Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

*By submitting your email you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Large real estate portfolios often require dedicated real estate asset management to help monitor and maintain the real estate portfolio. Whether you're an investor with a growing need for outside asset management for your real estate business or are simply interested in learning more about real estate asset management and how it works, this article will explain what a real estate asset manager does, how it differs from being a property manager, the pros and cons of working with a portfolio manager, and what investors should look for in an asset manager.

What does a real estate asset manager do?

In real estate, an asset manager is in charge of reviewing and managing a real estate portfolio, analyzing the performance of the individual investments and identifying areas or opportunities for growing the portfolio.

Large investment firms like an institutional investor or hedge fund have dedicated asset managers that solely focus on improving the financial performance of the real estate investment. However, there are third-party asset management companies that handle the management of real estate assets for individual investors, which can include:

  • Conducting financial analysis of the assets including a real estate stress test if needed.
  • Providing investment advice to the property owners, which could include what capital improvements could be made to increase value or drive rent prices up or ways to increase cash flow.
  • Suggesting an investment strategy that can improve the performance of the investment based on the current real estate market.

What does a property manager do?

A real estate property manager is in charge of handling the day-to-day management of an investment property, which can include:

  • Collecting and reporting rental income.
  • Communicating with the tenant.
  • Handling leasing for new tenants.
  • Lease expiration, tenant move-outs, and showing vacant units.
  • Coordinating property improvements and repairs with outside real estate professionals.

Which should you use?

While portfolio management is most commonly used in commercial real estate, it can also be utilized by individual investors, especially those with large residential real estate portfolios. However, an asset management company could benefit anyone who is unable to consistently review and analyze the performance of their real estate asset and determine the best strategies to improve income regardless of the number of investments they own. Though smaller investors will need to determine whether the income or size of their portfolio warrants the cost of hiring a professional asset manager.

Investors looking for assistance with the day-to-day management of a property should focus on finding and hiring a suitable property manager.

If you are able to consistently monitor your own portfolio, including the acquisition, disposition, and investment strategy in the relative market, then a professional portfolio manager typically isn't worth the cost. As your portfolio grows in size or your properties get bigger in scale, your need for a real estate manager may change. If you do feel you would benefit from real estate management, make sure to conduct due diligence on the manager and the firm before entering into a contract.

Unfair Advantages: How Real Estate Became a Billionaire Factory

You probably know that real estate has long been the playground for the rich and well connected, and that according to recently published data it’s also been the best performing investment in modern history. And with a set of unfair advantages that are completely unheard of with other investments, it’s no surprise why.

But those barriers have come crashing down - and now it’s possible to build REAL wealth through real estate at a fraction of what it used to cost, meaning the unfair advantages are now available to individuals like you.

To get started, we’ve assembled a comprehensive guide that outlines everything you need to know about investing in real estate - and have made it available for FREE today. Simply click here to learn more and access your complimentary copy.

The Motley Fool has a disclosure policy.