March brings us Asset Management Awareness Month, highlighting the importance of good asset and property management practices for businesses and property owners. At Orchard & Shipman, we know the importance of managing your assets responsibly, smart planning for investments, and maximising efficiency in the property investment market.
Property management focuses on the logistical, daily responsibilities of property investment, whereas asset management is more dedicated to adding value to property investments. A combined approach – property asset management – is a comprehensive strategy to increase the value of your investments while also reducing overall costs and maintaining efficiency.
“What do I need to consider for my property asset management plan?”
The best property asset management plans are well-rounded, comprehensive, and target the main aspects of property investment. It’s important to have a clear, long-term strategy to improve efficiency and avoid trial and error mistakes. Key parts of a good plan will include:
- Clearly defining your business goals/objectives with regard to investment – what do you want to achieve? How will you achieve your goals? What do you need to do to maximise your investment potential?
- Financial requirements and limitations – do you have a strict budget? Are you allocating budget to cyclical and non-cyclical fees and costs? Will working with agencies save you money in the long-term?
- Planning for the long-term – how will rent arrears affect you? How long can you afford a property to be vacant? How will you source suitable tenants?
- Investment protection – make sure that your money is insured, giving you peace of mind that your money is safe and protected.
It’s also good to consider the diversity of your property portfolio; diverse real estate portfolios allow for larger income streams, involvement in multiple markets, and the suitability of properties for you/your company. While property investment can be rewarding, it can also come with large costs which could leave you out of pocket, including emergency repair costs, legal fees, and other unpredictable costs. Well-researched asset management accounts for ad-hoc fees and recurring high costs, and takes into consideration both the short and long-term challenges that may be faced. Furthermore, your investment portfolio should align with your business goals and objectives; it’s great to aim high but be realistic and strategic in your approach.
Good property asset management means strategising to maximise income stream, profits, and efficiency. If you own affordable homes but you’re managing/selling them at a loss, there is a better option: Orchard & Shipman’s Affordable Homes Management Service.
As a Registered Provider, Orchard & Shipman are authorised to manage social housing developed under Section 106 agreements made with local authorities. This means you can retain ownership of your affordable properties, which are a fundable and saleable asset, leading to an income stream that increases over time and builds long-term value.
Orchard & Shipman will assume full ownership risk for your affordable new homes, reducing the financial burden on you derived from tenants in rent arrears, void periods, maintenance, and cyclical repairs. The Affordable Homes Management service also includes tenancy management, estate management, and greater control over placemaking, offering a great all-around solution for property investors to achieve their investment goals.
Consider using the Affordable Homes Management Service as part of your property asset management plan.