Buying an investment property comes with an added responsibility to the Landlord to maintain, manage and monetise. This requires a lot of effort, time and expertise which is why many Landlords engage a third party to help manage the investment. When seeking help with their property portfolio there are two types of services which a landlord may require – asset management and/or property management. If you’re a new Landlord or have a growing portfolio, you’ll need to know the difference between the two services.
Asset management refers to the process of maximising the value and return on investment of a property. This includes sourcing the highest and most consistent sources of revenue, minimising expenditure, and risk management. Asset managers are responsible for the general strategy of the asset and can also advise investors/Landlords on ways to grow their portfolio and suggest alternative profitable ventures.
On the other hand, property management refers to the overseeing of daily operations of the property on behalf of the owner. Alongside working closely with the property owner, a property management firm will also need to work closely with the tenants, acting as a representative of the Landlord. They will be the tenant’s first port of call, dealing with any noise complaints, maintenance and repairs, and any legal issues.
Landlords may seek to hire property management firms for various reasons, including if they don’t have the expertise or time to maintain rental properties, or deal with tenants directly. This is especially true for landlords who have multiple rental properties in their portfolio.
Although asset management and property management are two different services, it’s not uncommon for Landlords to seek both. Phillips Harrod are residential experts in London’s prime real estate who offer a multitude of services, including both asset and property management. To find out more about how Phillips Harrod can help you manage your portfolio, get in touch.