Asset Management

Asset Management OVERVIEW

Asset management is a vital, often overlooked link between multifamily investors and property managers. A property manager executes the mechanics of owning a multifamily property. They lease units, pay bills, keep books and records and oversee maintenance and the day-to-day operations of the property. It is a crucial job. But it does not include the responsibility of executing (or adapting) a comprehensive business plan to drive value. It does not include a continuous, unbiased and relentless search to enhance income and reduce operating and capital expense.

These responsibilities reside with ownership and/or professional asset management.

Virtually all large institutional investors utilize asset managers. Other types of investors/owners however are busy raising capital, sourcing properties, attending to other investments or even have other professions. Even a brilliant businessperson may not have the time, resources, relationships, scale, experience or desire to continually monitor and optimize each of their multifamily assets at the granular level.

An asset manager works every day between the layers of ownership and the property manager to maximize revenue, control operating and capital expense, recommend and implement value-add and best practices, review benchmark metrics, and provide clear, insightful reporting that goes beyond the basics to stakeholders. An asset manager can also assist in initial team building, oversight of property rehabilitation and capital improvement projects and disposition services.

MAA offers professional multifamily asset management and consulting services.

WHAT DO WE BRING TO THE TABLE?

Extensive Experience

Our success is forged in the experience and relationships of acquiring and/or operating 8,000+ units.

We Understand What Owners Want Because We Are Owners

MAA principal ownership, along with partners and team members, turned $40 million of original equity into $270 million in ten years in a previous partnership. As an asset management client, you benefit from the lessons learned creating that value.

Our Core Competency

Making better, more-informed multifamily value-add decisions was the subject of our founder and managing principal’s MIT graduate thesis. Even his vacation homes are exceptional Five-Star Airbnb performers. Executing multifamily business plans is in our DNA.

WHO DO WE BENEFIT?

Many can benefit from adding MAA Asset Management to the operational stack:
  • An individual or 1031 owner
  • A remote owner
  • An offshore investor without a large footprint in the U.S.
  • A developer looking to optimize a newly constructed asset pre-disposition
  • Any owner who employs third-party “fee” property management without dedicated internal oversight
  • A lender/servicer holding REO assets
  • Any owner of an under-performer who needs “another set of eyes”
In these scenarios, we can add tremendous value relative to cost, particularly in this era of increasing expense and moderating rent growth. For what amounts to a rounding error of Total Income, an owner can enjoy the peace of mind of knowing every day that his or her business plan is being aggressively executed, and asset value is continually being monitored, driven and optimized.
Download Our Full Presentation on Asset Management Services (PDF)

ASSET MANAGEMENT FUNCTIONS WE PERFORM

Team Building

If the client does not have a team in place, we can lever our relationships and select and oversee all-important third-party professionals such as on-site property and construction management, accounting, attorney(s), insurance and property tax consultants – all of whom will have an impact on the success of the business plan.

Asset Supervision and Optimization

This is the essence of being an owner/operator. A multifamily community is a business. And like any business, it does not run itself. If nurtured properly, it prospers. If not, it dies. Coordinating, motivating and supervising the Property Team and melding their efforts into successful execution of the business plan requires daily attention. Continually interfacing with and motivating staff, reviewing property operations and financial results line item by line item with an eye towards relentlessly increasing income and reducing expenses leads to optimization of the financial performance of an asset.

Oversight of Property Rehabilitation and Capital Improvements

If the client does not have a team in place, we can lever our relationships and select and oversee all-important third-party professionals such as on-site property and construction management, accounting, attorney(s), insurance and property tax consultants – all of whom will have an impact on the success of the business plan.

Reporting

Third-party Accounting and Property Management team members generate financial reports on a monthly or quarterly basis. MAA can supplement these reports by creating a custom formatted report that matches the “dashboard” of metrics that are the focus of each client.

Disposition Services

MAA leadership excelled in the multifamily brokerage space prior to undertaking principal investments. At any given time, each property has a pricing “envelope” – a range in which it could trade. Factors such as broker selection, timing, presentation, value-add overlay, pre-sale preparation, line item justification/adjustments etc. dictate whether it trades at the lower or upper end of that pricing envelope. MAA uses its 360-degree experience to make sure our clients maximize proceeds from sale.