How to manage a real estate heritage

How to manage a real estate heritage

Do you own several houses and want to start making a profit on them? This entry from our real estate blog is for you. Managing real estate assets is not easy, we are not going to fool you, but if you put effort into it right away you will see how profitable it is to have this passive salary every month.

In the real estate sector we can talk about asset management when we refer to anything related to reviewing or managing a real estate portfolio, either in the short term when we want to rent the house or in the medium/long term when we are thinking of selling it and trying to get the most out of it. performance.


What is real estate assets?

Heritage according to the RAE is "the set of assets belonging to a natural or legal person". Based on this definition, if we take it to the real estate field, we could say that real estate assets are the set of homes that a person has in their name.

The most important thing once you have considerable real estate assets is knowing how to manage it. Managing the homes you own is no easy task. The size of a person's real estate assets is a key factor when it comes to learning how to manage it, it is not the same to manage the rental of a single apartment than to manage 3 rentals of different types of housing at the same time. Also, if you have in mind to sell any of your rental properties you must take many factors into account before starting with the paperwork.

To be as efficient as possible in this regard, it is vitally important that you keep up to date with the state of the real estate market. This way you can modify the rents if necessary, put a reasonable sale price, etc.


Skills needed by a real estate asset manager

  • Must be detail oriented, but being critical and flexible while remaining open to new ideas.
  • Should have ability to analyze the real estate market and thus reject or accept possible offers for their properties.
  • must be a good negotiator.
  • Has to know how to communicate properly with the tenants.
  • He must know manage your time in an efficient way.


Having these skills is key if you want to get the most out of your real estate assets. Don't be scared, but doing it will take up a large part of your time at first, but once you organize everything in detail you will see that it is totally profitable.


Visions of real estate management

You can approach the management of your real estate assets in different ways, always taking into account your own way of being.

  • Bet vision. It consists of finding those homes that will be more profitable over time. To do this, you must manage the risk of acquiring a new home under certain conditions.
  • conservative view. It focuses on having the minimum possible expenses. In this case, you can assess, for example, renting the home to students that represent a "quick rental" even if their stay is only for one school year. These types of tenants demand less from the house, although they can bring you more head feeders during their stay.
  • Middle point. In this case, we focus on managing the risk of the properties, but without too many complications.


In addition to choosing which of these 3 points of view is yours, you should think about what type of property you want to have. In other words, you must decide if you want to:

  • Seasonal rentals.
  • residential rentals for long periods.
  • Commercial Use Rentals (premises or garages).
  • Mixed-use rentals, Mixing commercial and private use.


Think about your objectives, if what you want is short-term profit without complications, you do not need to invest a lot of money in the home, but if you are looking for a long-term objective with which to obtain more capital, you will have to invest a larger amount. The more money you invest, the more money you will collect in the future.


Tasks of a property manager

As we have said previously in this entry on our real estate blog, managing real estate assets is not an easy task. There are a large number of tasks that you must carry out if you want to get the most out of your homes. These tasks are:

  • study the market to adjust the sale or rental prices of your real estate assets.
  • Know differentiate which homes are worthwhile to sell or rent.
  • Increase home value making reforms when necessary or the market dictates it. The trends that are in at that time are very important if you want to capture the attention of potential tenants.
  • Know take out the financing suitable to invest in your homes.
  • Negotiate with tenants or buyers.
  • Manage possible unforeseen events that may arise from tenants.


If you want to know more…

I hope this post has been helpful to you to learn more about the world of real estate asset management. If you want to continue discovering more, do not hesitate to read the rest of the entries on our real estate blog.