Why Real Estate Management Companies Are Essential for Maximizing Your Property’s Potential

Investors, public bodies, companies... Real estate asset management plays a vital role at every stage of your asset's life cycle. Why turn to real estate management companies? What is their role in enhancing the value of your real estate capital? This post explains everything in its guide to real estate asset management.

Real estate asset management: what are we talking about?

Real estate remains a highly sought-after asset among investors. Institutional entities such as mutuals, insurance companies, or pension funds use real estate asset management to optimize their investments and benefit from attractive returns. These institutional investor profiles often set up asset management or asset management subsidiaries to have dynamic management of their real estate assets. Real estate management companies ensure the sustainability of real estate capital and allow its value to be increased by having access to sound advice on opportunities.

Real estate management companies: What Are Their Missions?

Making rental services more reliable

For optimal daily management of your real estate assets, you must have and use legal, administrative, fiscal, and technical knowledge, which can be very time-consuming when managed internally. To answer this, real estate management companies demonstrate expertise and position themselves as intermediaries between lessors, unions, tenants, and yourself.

To ensure the sustainability of your income, real estate management companies take care of:

• Financial and accounting management;

• Optimizing expenses;

• Tenant satisfaction and loyalty;

• Monitoring of collections and payments;

• The implementation of litigation proceedings;

• Setting up budgets and complete reporting of management activities (rental profitability, occupancy rate of premises).

Provide support in the management of works and manage maintenance.

During renovation work, whether for routine maintenance or rehabilitation, the asset manager defines the needs in advance and then produces a technical monitoring report of the property. Real estate management companies ensure effective communication by consulting with you throughout the process. They take the following actions on your behalf:

• Contact service providers for you;

• Play the competition;

• Manage all contracts;

• Ensure that everything is done on time until the final delivery of your rehabilitation and maintenance work.

Manage, design, market, and animate commercial assets.

Do you have commercial assets? There are real estate management companies, specifically dedicated to businesses that cover all the needs of your assets with 5 main branches:

• Real estate and technical management;

• Rental management;

• Co-ownership management;

• Center management;

• Marketing and communication.

Commissioning and Project Management

If necessary, real estate management companies can then propose energy cost reduction schemes and renovation work in order to comply with environmental standards, certifications, and labels. They then act as project management assistants (PMAs) and are responsible for helping the project owner define, manage, and operate the rehabilitation project. Their role complements that of the project owner, for whom they provide advice and assistance.

Hand in hand, the project owner and the PMA monitor the commissioning plan, which is broken down into 3 stages:

• Determine the project’s performance levels (particularly environmental and energy).

• Plan commissioning processes and associated documentation (design assumptions, applicable standards, performance criteria);

• Validate the objectives set (inspection of the quality of the installation, validation of the technical characteristics, verification of the quality of the settings).

Conclusion

Real estate asset management is critical for increasing investment returns and preserving asset value. Using the skills of real estate management businesses, investors may streamline operations, improve tenant happiness, and assure compliance with environmental regulations. Effective management enables better decision-making, thereby protecting and increasing the value of real estate holdings.