A Los Angeles Property Manager’s job description has evolved. A recent study has suggested that “the lines between asset management and property management are blurred.”
Property Management, by definition, dealing with the daily operations of commercial or residential real estate, this includes both rentals and owner occupied units. A Property Manager will act on behalf of the owner in routine tasks such as rent collection, administration of leases, scheduling of maintenance and repair issues, and perhaps most importantly, tenant relations.
Daily Comparison Between Los Angeles Property Management and Asset Management
Asset Management, by comparison, is focused on maximizing the revenue potential of each property and help to identify new methods of creating longer term additional value in the asset. This will sound a bit off but, both roles are very different but they have similarities.
The Property Manager is an expert in the day to day “blocking and tackling,” this is part of property operations.
Los Angeles Property Management Perspective
People tend to confuse both the Property Manager and Asset Manager roles. Property Management firms will sometimes blur Asset and Property Management by referring to the Property Managers as Asset Managers. Adding to the confusion, there are times when third party firms that mix their quality of service they provide by calling their Property Management function “asset management.”
It’s really a matter of perspective, Los Angeles Property Management companies say, whether the lines between the two distinct roles are blurred. Although, asset managers believe that the lines are very clear and that there should be no blurry lines whatsoever. They demand that the Property Manager do more, but not within the bounds of asset management.
Even though, today’s Los Angeles Property Manager role has become more demanding. Los Angeles Property Managers have meet the challenge and become more sophisticated, this is due to in house training programs and advanced educational offerings that seek to expose Property Managers to investment analysis.
Los Angeles Property Management Has Been An Evolutionary Process
A recent study explored the changes in Property Management from 10 to 20 years ago, then the responsibilities were limited to day to day building operations. Asset managers keep applying downward pressure on Property Manager’s to do more, this is a result because of the technological advances made in analytical and data reporting tools.
Some Los Angeles Property Management firms have tried to create a greater continuum with a higher level of services that could include more of an “asset management” type of services, this could be for the purpose of competitive advantage or just wanting to offer a higher fee.
Asset managers tend to believe the most effective Property Managers are the ones who think like asset managers, combining both a strategic and tactical approach to Property Management.
Los Angeles Property Management Sharpens The Line
Today, is a period in which the industry is seeing a reproduction in course offerings and programs to help a real estate professional advance, there are plenty of industry professionals that believe the line between asset management and Property Management is still not clear. This is a conclusion that is borne out again and again because of vertically integrated platforms that have both internal asset management and Property Management roles.
Although, vertically integrated firms, in order to be successful the Property Manager understands the “overall picture” of investment strategy to be added to the core or value add, as well as what the asset manager wants to accomplish from an overall perspective.
Los Angeles Property Management companies say that in the world of Property and Asset Management, it would be attractive to see both roles supporting each other. Expectations of Property Managers is ever evolving, it’s true that the best Los Angeles Property Managers should be paid for the value they create daily. But, evidence shows that the line between the two disciplines is not clear. Los Angeles Property Management companies hope for the best.
For the latest in Los Angeles real estate and Los Angeles property management news, trends and tools, make sure to stay connected with our blog at: http://tgnpropertymanagement.com/blog/