Asset Management

First let’s start off with what asset management is:

Asset management in terms of multifamily real estate involves overseeing the operations and performance of a portfolio of apartment buildings or complexes, with the goal of maximizing the value and profitability of the assets. The asset manager is responsible for managing various aspects of the properties, such as maintenance, leasing, tenant relations, financial reporting, and capital improvement projects.

In order to effectively manage multifamily real estate assets, the asset manager must have a deep understanding of the local market, including trends in supply and demand, rental rates, and competition. They must also have strong financial acumen, including knowledge of budgeting, forecasting, and financial analysis, in order to ensure that the assets are being operated efficiently and profitability.

One of the key responsibilities of the asset manager is to monitor the performance of the properties and make strategic decisions about how to optimize their value. This may involve implementing cost-cutting measures, such as reducing operating expenses or negotiating better vendor contracts, or identifying opportunities to increase revenue, such as by raising rents or improving tenant retention.

The asset manager must also stay up-to-date with legal and regulatory requirements related to multifamily real estate, such as fair housing laws and building codes. They may work closely with property management teams, leasing agents, and other stakeholders to ensure that the properties are being managed in compliance with these requirements.

Overall, effective asset management in multifamily real estate requires a combination of strong operational skills, financial expertise, and market knowledge, along with a commitment to maximizing the value and performance of the assets.

Listen to our podcast with Omar Khan to learn more about asset management:

About Omar Khan:

Omar Khan is the Founder and CEO of Boardwalk Wealth, and he’s talking to us today on Real Estate Investing for Medical Professionals about asset management – one of the most overlooked, undervalued components of property syndication.

Omar has advised on $3.7 billion in capital financing. His investment experience across real estate and commodities shines through in this insightful conversation with Viking Capital’s Colm McEvilly as he expresses the importance of understanding the fundamentals of asset management and seeing tenants as satisfied residents of a community.

Nuance is critical to Omar’s understanding of asset management as he explains why it’s not just one key metric that needs consideration when weighing up the pros and cons of any deal. For example, is it worth pushing up the price of parking on your property if that causes a 20% decrease in occupancy? How you weigh the little things up against each other and how you pay the people you work with well – and treat them with respect – are all covered by Omar in this episode.

More importantly, he illuminates our understanding of what asset management is by asking us to reflect on what we consider assets to begin with. This is a masterclass in human relations with some practical tips on seeing your property as a valuable asset that needs to be managed with clinical oversight and attention to detail.

“Banish – literally banish – the word ‘tenant’ from your vocabulary.” ~ Omar Khan

In This Episode:

    • Why investors need to know how the sausage is made
    • Understanding the core fundamentals of investing and asset management
    • Why it pays to hold onto assets nine times out of ten
    • The value in creating a community of satisfied residents 
    • Why it’s important to pay people properly in property management
    • The importance of understanding nuance when it comes to asset management
    • What is the long-term consequence if you DON’T do something for your property?
    • Asking yourself ‘Why?’ three or four times to get to the root cause of an issue
  • Omar’s Top 5 Rules
  • Building strong relationships leads to having a stellar reputation
  • Why teamwork makes the dream work
  • Manage your Capex like your hair is on fire!
  • Appreciating that the work you do is a “for profit” exercise
  • Omar shares his dashboard spreadsheet data ‘quilt’
  • Rebranding your property if it only has three stars on Google Reviews
  • Why your ‘rent roll’ is a key to success
  • Why renovations are a proven, value-add process
  • Sioux Falls, Brighton Farms, and Lakewood Oaks property management case studies

Connect with Omar Khan:

Connect with Viking Capital:

Connect with Ravi Gupta: