Overview of basic asset management services:
The overview shows the main services of asset management. The percentage indicates the frequency with which the specified service is provided as a basic service, and thus specifies what is covered by the basic fee. If it is not a basic service, the service is ordered as a customised/special service and is either provided via partner companies or not at all. Source: Asset Management Report 2016 of BMC.
Although there is no entirely uniform definition on the market, asset management can be described as everything which is needed to ensure comprehensive management of real estate in the entire investment cycle. This essentially involves strategic and monitoring tasks, and in certain areas also of course includesexecutive tasks. The transitions and interfaces to the related functions such as investment management and property management are not clearly defined. Individual elements of the overall range of services are deployed selectively depending on the specific requirement. The asset manager should consider that his role and responsibility is to be a type of “chief administrator” of the property.
The various functions involved in asset management can be broken down into those functions which relate to the property and those functions which relate to management aspects.
Property-related services (e.g. property and facility management) are necessary in order to ensure permanently smooth operation of the properties, and such engagements are normally placed and monitored by the asset manager.
On the other hand, management services tend to relate to unlocking the revenue potential of properties. These include in particular the revitalisation and letting functions as well as purchasing and sales, as they determine the period during which funds are allocated in the course of an investment, and also determine the extent of the funds which are deployed and the amount of the generated returns. These two functions have a major impact on success in meeting the investment targets.