Real estate management is the practise of professionally overseeing real estate assets such as residential and commercial buildings, in order to maximise returns for investors. To invest, manage and maximise the performance of real estate assets, real estate managers employ a range of tactics.
Real estate managers have a variety of important duties that include:
- Purchasing real estate: Real estate managers search for possible investment possibilities and buy real estate on behalf of financiers.
- Managing properties: The day-to-day management of the properties that real estate managers possess is their responsibility. This entails duties like overseeing rent collection, tenant management & property upkeep and repair.
- Improving performance: Real estate managers are in charge of putting initiatives to raise the value of the properties into action, such as remodelling and relocating them to increase their cash flow and resale value.
- Selling or refinancing properties: When the time comes, real estate managers will sell or refinance the properties in a way that will optimise returns for the investors.
There are several different investment instruments that can be used for real estate management including:
- Real estate investment trusts (REITs): REITs are publicly traded businesses that own and manage real estate assets. REITs must transfer a sizeable amount of their earnings to shareholders.
- Real estate funds: Mutual funds or other forms of funds that buy shares of REITs or other real estate-related securities to invest in real estate assets.
- Private real estate investment trusts: These are comparable to REITs, but they are not obligated to transfer a sizable amount of their profits to shareholder nor are they needed to be publicly traded.
- Private equity funds: These are funds that invest in privately held real estate assets rather than publicly traded business such as homes.
The majority of real estate management companies have a particular focus, such as residential, commercial, industrial, hotel, healthcare and more. They have the ability to manage funds for both individual and institutional investors including pension funds, endowments, foundations and sovereign wealth funds.
