For all its financial rewards, asset management can be a tiring business.
Whether it’s collecting rent, marketing your properties, or maintaining them, you’ll probably agree that asset management takes a lot of time and energy. Being your own asset manager might be fulfilling, but it’s not practical if you lack professional asset management experience.
Not sure if asset management services work for you? Here are 10 reasons why you should hire an asset manager.
You get the rental pricing right
It’s fair practice to estimate your rates based on what other landlords around you are charging, but you still need to put in a lot of guesswork.
That means taking chances with a whole range of factors that can influence asset value. Even if you take your cue from your fellow landlord, not every property enjoys the same amenities, features or even view.
A good asset manager can deliver a sound price estimate by conducting comprehensive market studies. If your asset manager is already handling a diverse portfolio of assets, his or her professional asset management experience can also help inform better value for your assets.
You’ll receive payments on time
The hardest part about asset management isn’t managing real estate, but handling people’s relationships. Making sure your tenants pay rental fees on time is a common challenge for any asset manager, and enforcing late fees is even harder.
A good asset manager should have a working knowledge of methods and systems to efficiently collect rent and enforce payment deadlines. Unlike asset owners who manage their own properties, asset management companies and services not only know the rules but can make sure your tenants actually comply with them more often.
Your property gets shown to a wider audience
Marketing your own assets can be difficult if you are unfamiliar with the right channels. Even if you do manage to attract views, the audience you draw may not be the most ideal either.
Asset managers, on the other hand, are familiar with real estate marketing channels and can create the right messages to advertise your property. A seasoned asset manager is also more likely to already have a waitlist of potential tenants, so your property immediately gets in front of a wide and relevant audience.
You can screen and manage your tenants more easily
Choosing the right tenants can be difficult if you don’t know how to conduct a security assessment, credit analysis, employment verification, or secure a landlord referral.
Entrusting the wrong tenant with the keys to your property is the last mistake you’d want to make.
A seasoned asset manager will be able to conduct a thorough background check on all prospective tenants, protecting you and your property from potential harm.
You have one point of contact for all your vendors
Asset management is multi-faceted, and you’ll need to build and maintain relationships with many service vendors to effectively manage your property yourself
By hiring an asset manager, you can simply tap on their existing relationships and liaise with them for any property servicing needs instead of reaching out to each and every vendor separately.
You’ll avoid any unnecessary lawsuits
In Singapore, many laws and regulations govern asset management services. There may also be additional rules that apply for certain types of properties. Understanding the difference between tenancy leases and licenses is just the tip of the legal iceberg all asset managers need to thoroughly examine and abide by.
An asset manager can ensure that your property always meets regulatory standards. If laws governing property rental are changed, professional asset management services can also keep your property up-to-date, saving you from any unwanted run-ins with the law.
You can take advantage of opportunities outside your area
As your own asset manager, it’s likely that you will not have the network or the capacity to look beyond your immediate neighborhood.
Even if you’re bombarded by advertisements for property investment opportunities overseas, it will be difficult for you to take advantage of them because you’re already so tied up by managing your current portfolio.
With an asset manager overseeing your properties, you can tap on their network and relationships and seize exclusive asset investment opportunities you might not have without their help.
You’ll have more time to build your portfolio
Time is your most valuable asset, and an asset manager can help you make the most of your time by freeing you up to look for more properties to invest in and expand your portfolio with.
You can settle tenant disputes without the headache
Sometimes disagreements may happen over rent disputes or property issues, and it tends to be more difficult for a property owner to reach the amicable ground with a tenant. Separating the personal from the professional can be tricky if you are your own asset manager.
With a professional asset manager, he or she can serve as an intermediary to mediate any conflict. Because an asset manager simply fulfills his professional duty, he or she can approach the problem more objectively and prevent conflicts from escalating.
Your assets are consistently kept in good shape.
Most importantly, a good asset manager will always make sure that your assets are kept consistently clean and presentable to potential tenants.
Because asset managers tend to already have working relationships with vendors that provide services such as electrical work, cleaning, and disinfecting as well as plumbing, they are able to quickly respond to any issues that may arise. This not only maintains your asset’s appeal but also ensures a high level of comfort for your tenants – all without you having to invest too much time and energy.
Asset management doesn’t have to be tricky. With a good asset manager by your side, you won’t need to worry about collecting rent, keeping your assets in great shape or even missing out on rare investment opportunities. Even if you have professional asset management experience, an asset manager (Like Butler) can still save you a lot of time – time you can use to build an even bigger portfolio for yourself.