MAIN IMAGE: Schalk van der Merwe, Director WeconnectU
At WeconnectU, we are on a mission to create more valued and valuable property managers, and one of the ways we are doing so is by helping to reposition them as Rental Asset Managers, rather than Rental Administrators. This may, at first glance, seem like superficial semantics, but closer inspection quickly reveals the potential of this seemingly small change.
What’s in a name?
The first thing to understand is that “Rental Administrator” and “Rental Asset Manager” are not two names for the same thing. Each of these roles has a very different set of responsibilities and scope of involvement in the rental management process, and both are equally important.
Both are vital for the success of a rental property. But one tends to be more highly valued than the other.
Let’s take a closer look.
Rental Administrators focus on tenants and the day-to-day operations of running a rental property – the “nuts and bolts” administrative tasks that (ideally) keep the rent cheques coming in. They typically offer little in the way of future-focussed strategic planning or investment optimisation, keeping their eye firmly on more immediate/short-term needs and challenges.
Core responsibilities include:
- Securing tenants: Advertising vacancies, coordinating property showings, processing rental applications, drafting lease agreements and managing tenant documentation.
- Managing tenants: Tenant communications/concerns/issues, rent collection, maintenance requests.
- Basic financials: Tracking rental payments, and generating financial reports.
Rental Asset Managers
Rental Asset Managers take a much longer-term view of rental property management, extending their services beyond the administrative to also focus on the strategic side of the equation.
Core responsibilities include:
- Strategy: Overseeing and actively working to enhance the performance and value of each property asset within a portfolio, as well as the overall value and yield of the portfolio as a whole.
- Analysis and Planning: Analysing financials, market research, property trends and opportunity forecasts to develop proactive strategies to optimise rental income, minimise expenses, and maximise ROI.
- Advisory Services: Providing regular performance reports, financial analyses and personal recommendations while building trusted relationships with investors to help capitalise on emerging opportunities and minimise risk.
- Proactive (long-term) Planning: Developing long-term maintenance schedules and property improvement projects to protect and enhance asset growth while evaluating insurance needs and monitoring long-term trends to ensure ongoing viability and profitability.
Why does it matter?
As we hinted a little earlier, Rental Administrators are seldom as highly valued – or highly paid – as Rental Asset Managers. The reason for this ultimately boils down to perception. Specifically: the investor’s perception of the problem(s) being solved, and the value they associate with those solutions.
Rental Administrators are typically perceived to be solving a host of time-consuming, often mundane, but not terribly specialised administrative chores. Many landlords believe (likely mistakenly) that they could easily fulfil the role themselves – particularly with the help of modern technology. As a result, they are seldom willing to pay more than a token amount for what they view as a very basic set of services.
Rental Asset Managers, on the other hand, are perceived to be solving a much greater problem – the problem of building a secure, profitable and growing property investment. This leverages a skillset that is much harder to replace or replicate and stands to deliver more tangible rewards. As such, investors tend to value – and therefore compensate – these services far more highly.
Technology’s role in empowering change
There was a time that Rental Administrators could only dream of being Asset Managers. A time when the administrative burden was simply too heavy to permit anything more. Thanks to the rapid evolution of technology in the rental management space, however, this roadblock is history.
With its ability to automate mundane administrative tasks, improve workflows, and foster collaboration across departments, technology has reshaped the way rental businesses operate. It offers Rental Administrators the opportunity to dramatically lighten their administrative load, empowering them to spend more time and energy on the asset management services that today’s investors value so highly.
In other words, technology has made it possible for Rental Administrators to transition into Rental Asset Management – and finally reap their fair share of recognition and reward.
How to (successfully) make the transition
Technology has made transitioning from Rental Administration to Rental Asset Management easier than ever, but success requires change on a much deeper level. Here are a few ways to help make the transition an effective one and unlock your full potential within the new role.
- Expand your expertise: Hone your understanding of residential market trends, industry regulations, and best practices to a fine edge, and expand your knowledge of asset management principles.
- Foster investor relationships: Build trusted relationships by demonstrating your expertise and value to your investors, highlighting your strategic capabilities and substantiating claims with measurable results.
- Sharpen your asset valuation skills: Learn to spot an opportunity from a mile away, conducting in-depth market research, financial analysis, and flawless due diligence.
- Level-up on maintenance and repairs: Get to grips with the requirements of successful preventative maintenance and build a trusted provider network to execute on your plan.
Experience the future, today
The property landscape isn’t changing. It’s already changed. And WeconnectU is the only solution on the market to unlock all the opportunities of this new environment. Why toil endlessly using outdated tools when you can upgrade to the one solution that really does it all?
Achieve your full potential with WeconnectU.