Property management focuses on the operational aspects of individual properties, including tenant relations, maintenance, financial reporting and budgeting. Asset management takes a more strategic approach, analyzing portfolio-wide data on economic trends, rents, vacancies, expenses and capitalization rates to make investment and pricing decisions that improve returns across all assets. It uses macro-level analytics of the broader economy and local real estate market to build a comprehensive valuation model for maximizing the value of each property over time.
5. The Micro Analytics
Analyzing portfolio data to improve efficiencies and drive up
real returns:
Rents/sales comparisons.
Property budget analysis, actual to desired.
GAP analysis functionality.
Vacancy and ageing vacancy rate.
Concession tracking net effective rent.
Occupancy percentages.
Turn cost reporting.
6. The Macro Analytics
Building a comprehensive model using all key economic
drivers in creating value for an asset:
Unemployment rates
GDP & GNP
Mortgage default rates
Inflation
Commercial vacancy rates
Birth and death rates
Cost of equity capital
Cost of risk free capital