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How to Create a Career in Real Estate Portfolio Management

Real estate portfolio managers are responsible for preparing asset strategies, asset allocation, managing risks, and supervising transactions. Real estate portfolio management is quite different from equity and mutual funds management.

As a real estate portfolio manager, you can hold a number of positions such as site manager, property manager, regional manager, asset manager, and executive of the company. However, you must note that a job title will be allocated to you depending on the nature of the company. In most cases, a real estate manager is like a company’s CEO. You should be able to boost the value of your client’s property by implementing different strategies. If you are interested in this field, read on to find out how you can become a successful real estate portfolio manager.

1. Give Value to Your Clients

If you want to become a successful real estate manager, you will have to optimize the value of your client’s property. You must make sure that the investor’s capital is used efficiently. You can keep your clients informed about their assets by using certain techniques, such as superior performance measurement and cash flow forecasting.
Unlike equity fund managers, you will be in charge of your client’s assets. You have to form strategies that will increase the value of their assets.

2. Learn the Basics of Real Estate Property Management

As a real estate asset manager, you should study about different types of properties such as offices, retail, hotel, industrial, and residential properties. You must have a good idea about the properties located in your region and also have knowledge about different localities. If your client wants to own multiple assets, you must create a property portfolio, which includes properties located in different regions.

To be able to create a perfect property mix for your client, you can concentrate on particular regions or specific property types. Some real estate managers organize their staff by allocating different regions to them. This way they can identify the potential of different markets, which helps in organizing the client’s assets and creating a profitable portfolio.

3. Know about Different Investment Processes

As a real estate portfolio manager, you will have to be directly involved in different investment processes. You must know about acquisitions, finance, and dispositions. You should also know how to create property-level strategies and execute them. You can do this by getting more information about different property types and their worth in different local markets. This way you will be able to increase the value of your client’s assets.

4. Understand Leasing Process

Leasing is a very important aspect of property portfolio management. In a lease agreement, one party rents property from another party for a certain period of time and for a specified amount of money. Apart from managing budgets and conducting expense management, you should manage leasing at a few properties. Leasing helps in increasing the value of a property.

You should know how to negotiate with existing and new tenants. Additionally, you should also know when to start and stop leasing processes. For instance, if a property has been marked for sale, you should stop the leasing process for that particular property. This will give potential buyers a chance to pitch in higher leasing rates. This strategy will increase the value of the property and you can ask for a high selling price.

Apart from this, you should know when to seal long-term lease deals and when to shorten them. When rental rates are increasing, you should lock in long-term deals to earn high rental yields. But, if you have designed a strategy for capital appreciation, you can shorten lease terms so that the property can be sold for higher rates in the future.

Your ability to understand and implement the best property portfolio strategies and managing the assets under your custody will make you a good real estate manager. If you can get high returns for your client’s properties, you can create a niche for yourself in this field.

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