Do you consider yourself to be an asset manager?
Wikipedia defines asset management as a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively. Being an asset manager is an entire profession that usually handles institutional and commercial sized real estate.
HOWEVER, that title looks good on you. You should wear it!
A group of asset managers met for the 2014 Maximize Asset Management Convention where one of the presentations was on the topic of ancillary income. This is very fitting since upgrading an asset’s income in a defining feature of a manager’s performance.
Kevin Huss, Harbor Group Management Company’s Director of Revenue Management, presented this Power Point workshop on Incremental and Ancillary Income Strategies.
Some Points You May Find Interesting
1 – You drive ancillary income through reporting.
2 – Be mindful of the tipping point. You don’t want to irritate residents by nickel and diming them.
3 – The length of time you plan to hold your asset should be considered when selecting ancillary income strategies. Compare your breakeven projection to your holding plans.
Huss suggests you consider these concepts
1 – How you can utilize your economy of scale to leverage income opportunities.
2 – Increase property portfolio income through multi-stream revenue sources.
3 – Monetize resident service demands.
Huss’s points are filled with wisdom; let’s unpack them one at a time over the next six weeks.
Stay tuned and keep your Asset Manager hat on.