A real estate asset manager is someone who manages and evaluates a real estate portfolio. Also, he or she surveys the performance of each investment discretely and pinpoints regions of opportunity where there is maximum portfolio growth. Investors and large firms appoint them for improving the financial performance of their assets. There are many real estate asset management companies that review large investments.
It can prove to be a unique career for people highly interested in the rental market. This article will provide you a better outlook of this job profile. Also, it will contain significant pointers to become a real estate asset manager and explain what they do.
Educational route
To become a qualified real estate asset manager, it is important to choose from the required and most preferred degrees. Though most people go for college study, it is possible to become a real estate asset manager through a high school diploma or GED. But employers usually expect a bachelor’s degree and prefer people with a master’s degree. Following is the list of all the degrees you can pursue to become a real estate asset manager.
Bachelor’s degree– It is regarded as the minimum required qualification by most employers. It helps you to understand significant topics such as property finances and contract management in great detail. The in-demand subjects for majors include-
- Finance
- Public administration
- Business administration
- Accounting
- Real estate
Master’s degree– While a bachelor’s degree helps you step into the career, a master’s degree opens up several potential career paths. Previously, a career in real estate demanded a lot of work experience and independent qualifications. But with the developing industry, real estate has started to focus more on higher education levels for all facets related to real estate. Aspirants can pursue a master’s degree in the subjects they major in during the bachelor’s program.
Associate degree– It is an undergraduate degree that provides basic technical knowledge and transferable skills required in the chosen discipline. Many students pursue it as a preparation for a bachelor’s degree but it isn’t compulsory. Just like a bachelor’s degree, it is open to students after they have completed their secondary education. The associate degree program has a duration of 2-3 years. You can go for a degree in Associate of Arts in Real Estate Studies or an Associate degree in Real Estate Management to boost your career skills.
Doctoral degree– Demand for professional doctorates is rising in this field. Therefore, one should consider different Ph.D. programs available. They help fetch positions in consultancies, companies, and the housebuilding sector. People also go for jobs as building control surveyors, estate agents, etc. It typically takes 2-4 years to complete the course. Some of the popular Ph.D. degrees in this field are as follows-
- Ph.D. in Real Estate MBA
- Ph.D. in Real Estate
- Ph.D. in finance
- Ph.D. in Business Administration
- Ph.D. in Accounting
Professional certifications
It is not a critical aspect of employment but it increases your competitiveness and skills. Obtaining certifications from a recognized corporation indicates that you have good vocational knowledge. It can include budgeting, risk management, environmental health issues, accounting, etc. Some professional certifications include-
- BOMA Asset Management Course series
- Real Property Administrator credential
- IREM Finance and Asset Management Courses
- NPMA Asset Management Certificate
- BOMI International Asset Management Course Series
Duties of an asset manager
A real estate asset manager’s job description entails amplifying the property yield for their clients and keeping a track of its performance. They administer their firm’s operations, leasing, and construction groups to assure that each asset reaches its ideal cost. A real estate asset manager is also responsible for making all prospective lease transactions according to the existing market conditions. They have to take up certain cost control measures and plan intelligent strategies to guide their management and leasing groups to achieve top-line revenues. Asset managers also review procedures for errors due to oversight. Their work requires them to be aware of all the prevailing market situations, analyze data, deeply research about the market, and prognosticate revenues of different properties. They develop an understanding of where a particular asset stands in competition keeping leasing and investment as their frame of reference.
The managers keep a track of all the business, monthly and quarterly reports as well as the reporting process of their team. They have the authority to fine-tune and implement the accepted procedures to achieve proprietorship goals. An asset manager is expected to provide accurate information after assessing the impact of the plans when actualized in the situation of sale. He or she also has to coordinate with the attorney when purchasing new assets and provide a model of the financial analysis process for each portfolio. Other jobs include taking care of the lease expiration date and issuing a termination or renewal at least 60 days before it expires.
Salient skillset
There are specific abilities you should have or develop to excel in the field of real estate asset management. The skills are listed as follows-
- You must be a detail-oriented person as there is lots of data to be analyzed, corrected, or changed. An asset manager has to develop many portfolios, assess their status, and review activity reports. Therefore, this skill will help you minimize errors, make effective reports and analyze data properly.
- You should have a strong critical thinking ability as you will be required to forecast property revenue, evaluate project performance, etc. where accurate judgments become necessary.
- You must be highly interested in the financial market and affairs related to it. This characteristic can help you develop an understanding of what drives the market. Also, employers prefer people that have a passion for the industry they want to work for.
- Strong communication skills are extremely important as you will have to regularly talk to investors. Many times, managers have to convince the clients or give an explanation for bad performance. Also, maintaining strong communication with colleagues in the rental market is considered beneficial.
- You must have a broad knowledge. Recruiters look for candidates who not only know bookish solutions but also have a perspective inspired by the real world.
- You are also required to have the ability to reason. When candidates appear for their interview, hiring managers focus a lot on reasoning skills. They put up questions like, “Why did you take this decision?” to test the ability of reasoning. Also, you must be able to give reasons to your client on all the issues they face even if it is about your decisions.
- The ability of out-of-the-box thinking is essential in this field. You will have to face many projects and keep developing unique and better ways to make them successful.
Employment areas
Real estate asset management is a rising field and profitable too. Therefore, there are many job sectors seeking asset management staff. They are as follows-
Real Estate Investment Trusts– These trusts work as a single unit to keep the assets of the property investors guarded . They hire real estate asset managers for the management of all the assets. Also, the asset managers aid the property owners in calculating estimated property value and make changes in the portfolio that complement it.
Real Estate companies– These are the most common recruiters for RE asset managers. Here, you will be required to provide all the asset management services to the clientele assigned to you. The choice will be more dependent on their income bracket.
Mortgage brokerage firms– They employ RE asset managers for management services for the financial management sector. They also give opportunities to provide management services to investors.
Property management firms– They function like real estate companies but provide management services to individuals as well as people with institutional ownership. They charge a fee for the service that equals some percentage (as decided by the company) of the total property amount that is under management.
Government agencies– Many real estate-related government agencies are managed by asset managers. In addition, they also handle local housing, commercial as well as state housing. They also find jobs in government departments associated with development and housing.
Commercial banks– These banks have many real estate portfolios. Out of those, some properties are held in trust with the bank and some are owned by it. They hire real estate asset managers for managing all these portfolios.
Insurance companies– They are usually involved in real estate affairs as it is the chief element of their investment portfolios. Here, the main task of real estate asset managers is to serve institutional investors and pension fund owners by providing high-level portfolio management services.
Real Estate development companies– These companies are involved in developing real estate properties. It involves construction, surveys, renovation, and restoration. They hire real estate asset managers for the management of the properties they have developed.
Religious and charitable organizations– These organizations aim to help needy people by providing low-cost as well as no-cost housing schemes. They usually look for those real estate managers who are interested in management and social service.
Corporations– Most of the corporations include a discrete department for real estate management. They deal with many investments that are owned by clients as well as the company. Corporation recruiters look for an in-house real estate asset person. The main tasks include planning for the best utilization for restoring and corporate properties, leasing, selling them, etc.
Frequently Asked Questions (FAQs)
What is the average salary, common job benefits in real estate asset management?
The average salary of a real estate asset manager is approximately $44.87 per hour or $87,500 per annum. It is 15% above the national average salary in the United States. The salary in an entry-level job may be as low as $38.59 per hour or $75,250 per annum. People after gaining a lot of experience earn up to $61.54 per hour or $120,000 per annum.
Managers in the 50th percentile range in the USA earn around $83,554. The top 75th percentile earns almost $240,000. They earn the highest in New York City and the least in Seattle, Washington State. Delaware and New Jersey also pay high salaries to real estate asset managers. In New York City, the average salary is around $150,000 per annum. The middle 50th percentile in NYC has a paycheck of $120,000 per annum while the top 75th percentile earns $240,000 per annum. In Seattle, the average salary is $70,000 per annum. The middle 50th percentile here has a salary of $65,553 per annum while the 75th percentile makes $100,265 per annum.
The estimated growth rate in this job is 16%. Common benefits in this job are as follows-
- Paid time-offs
- Employee assistance programs
- Life insurance
- 401 (k) matching
- Paid sick time
- Flexible spending accounts
- Disability insurance
- Referral programs
- Gym membership
How to write an ideal resume for an asset management job?
You are required to divide your resume into four sections- contact information, work experience, education, and skillset. In the first section, you have to write your contact details such as telephone number and e-mail (must be an official username). It is important that employers can contact you in case of a job offer.
The second section, work experience is something that the employer mainly looks up to. Do not just mention the posts and the company you served, explain relevant accomplishments you made during the job that benefited the company as well. You must write about recent 3-4 work experiences in detail. Emphasize your expertise in investment banking, investment analysis, finance, financial modeling, etc. Describe major achievements while working in a lease administration database or for a large tenant with a real estate portfolio.
In the education section, mention the post-graduate degrees first (Ph.D., master’s degree), followed by a bachelor’s and associate degree. Try to put it just after your major work experiences. Additional details you can consider are your school’s name, your major and minor subjects, graduation year, and the location of your school.
The last section is the skillset. Write about the most important professional skills (such as negotiation adroitness, time management, etc.) you possess. But always be honest about it. Mention your technical ability in Access, PowerPoint, Excel. Outlook, etc. Write about your communication and other interpersonal skills such as active listening, verbal skills.
Conclusion
The real estate asset management industry is growing day by day with lots of positive career prospects. It is a job with a decent amount of income and large scope for personal growth. If you have a drive for the field of real estate, this job position is one of the best posts this career area can offer.