Asset management, at its core, is a specialized field of real estate management that involves the supervision of an owner’s real estate assets at the investment level. Asset managers generally focus on long-term, strategic financial planning, rather than day-to-day property operations. Planning and directing the performance and disposition of real estate assets is the asset manager’s main goal, and it is done for the benefit of the owners and investors.
The asset manager’s primary responsibilities begin once the property is occupied. The asset manager acts as a financial manager for the completed development, overseeing the property management activities to ensure that the tenant occupancy levels remain high and the project performs well financially. The asset manager also reports about the development to funders, in compliance with regulations associated with housing funding programs. In some cases, the property manager assumes the role of asset management in addition to their other duties. Before making such a decision, however, it is important to understand the functions thoroughly and to assess the potential costs of staff and expert time needed to fully respond to the expectations of funders, lenders and other community stakeholders. Some housing providers have taken on this function, only to be surprised by its demands and the costs.
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