Updated: Jan 7
Residential Portfolio Management
Residential Portfolio Management Portfolio Management is the management of your assets to add value and grow your portfolio. It is the big picture overview of your goals broken down into short-term and long-term plans. Portfolio Management entails the oversight of Property Management in the day-to-day operations, marketing, and leasing, Project Management, Market Trends, and Analysis, etc. As an investor, it is imperative that you have strategic plans for your residential investment business. This strategic plan will be the guide to how your asset portfolio is managed. Why is this important No one buys real estate without a plan. Whether your plan is to build generational wealth, retire early, or be financially free with a stream of passive income, there is a driving force behind your investment decision. This is your WHY. It is the reason you keep pushing forward in spite of and the basis for how you make decisions regarding your investments. Your WHY also feeds into the type of risks you are willing to take and ultimately how you chose to manage your assets. Understanding your WHY, and your Financial Mindset are important things to note when developing a Portfolio Management Strategy. This feeds into how you chose the experts that will need to be on your team; for example, your Property Manager. The Property Manager is a critical component of the success of adding value to and growing your assets. Do you Need a Residential Portfolio Manager? As a Real Estate Investor and Property Owner of multiple real properties, you are the portfolio/asset manager. This is your most important role: to manage at a high level the Property Management, Leasing, Marketing, Projects, etc. for your portfolio. To be clear, you can have others functioning in these roles under you, but this is ultimately your ship to steer. Understanding your position as a Portfolio Manager is key to shifting your mindset to be able to navigate from this vantage point. Depending on the size of your residential portfolio, you may outsource the Portfolio/Asset Management job to an Asset Management Company. They will manage to the goals you provide them, so being clear on your overarching strategy is imperative. When you hand over your properties to a Property Management Company or an Asset Manager, they are going to manage according to the goals you have set and communicated to them. The leasing strategy will be built around achieving your goals, the improvement project will tie to your goals, the day-to-day management will tie to your goals, you get the point; it all funnels back to you. To be successful in business you also must remain nimble and allow space in your business plan to pivot as needed or as necessary. Having a strong team, frequent communication with your team, and being clear on your goals will be to your advantage.
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