Investing in real estate can be extremely lucrative. It is more hands-on though and requires knowledge about all aspects of leasing, capital improvements, property maintenance, tenant relations, and more.
Asset management for commercial properties is complex. For success, you must be able to track market trends, digest a lot of information, and make big decisions. The good news is that there are some tested strategies for success.
This article lays out several of them. Keep reading to learn more about how to get the most out of your Charlottesville commercial real estate investment.
What Is Asset Management?
Asset management is a specific aspect of real estate investing. For the purposes of this article, it is distinct from "property management," which is the day-to-day operations of properties, and "portfolio maintenance," which is decision-making about buying and selling properties.
Asset management involves specific decisions about particular properties or sets of properties. These revolve around the goal of renting the property.
Know Your Property
Becoming familiar with every detail of the physical space inside a residential property is natural. You want to get a feel for how the square footage is laid out so that you can have a picture of what renters might value.
A major mistake is when a real estate investor overlooks this with commercial properties. They assume that square footage is all businesses care about--a serious misconception.
Look at how the property was used in the past, but also think outside the box. If there are ways to make the space suitable for different types of businesses, this will help you cast a wider net when you put it on the rental market.
The next most important aspect of asset management is determining which improvements are a necessity and which can wait. It is neither necessary nor prudent to make every possible upgrade.
That is why prioritization is imperative. The key is to make the most out of your property so that you can keep it competitive. Even small improvements, such as new light fixtures or a fresh coat of paint can go a long way toward making it attractive to renters.
The strategies above are related to maximizing returns. However, minimizing risk is an equally important aspect of real estate investing.
This is why budgeting for repairs and upkeep is vital. It helps you minimize the chance of the property going vacant due to needed restoration. Having a realistic budget for each property you own can help you avoid this.
Leveraging the expertise of real estate professionals can give you a huge advantage in asset management. It can not only alleviate a lot of time but allow you to make the most informed decisions possible.
Also, you can combine asset management with assistance with investing strategies, property maintenance, financial reporting, and more.
Find Charlottesville Asset Management Assistance
Now that you understand the benefits of asset management, you can determine if it is right for your commercial properties. A professional management company can help you make the right moves to ensure your property stands out in a crowded field and stays rented longer.
PMI Commonwealth is a full-service real statement management company. We offer a variety of services, including asset management for commercial properties. Contact us today to schedule a free consultation.