Asset management is becoming an increasingly competitive industry. With 83 per cent of industry workers experiencing rising levels of pressure in their job, it’s clear that business is on the up. Nowhere is this more prevalent than in the commercial property sector, where capital investment in November rose by 167 per cent from August’s market lull. For those managing investment portfolios on behalf of high-profile clients, the chances to increase profit margins have never been greater.
However, in such a crowded marketplace, companies can no longer rely exclusively on nous and intuition to help them secure prime real estate. For this reason, more and more investors are turning to property portfolio software to squeeze every drop of value from the assets they acquire.
What role can property portfolio software play in asset management?
The automation of property portfolio management is set to form a critical part of investment trends in the next few years. Already in the UK, 40 per cent of the capital’s workforce is made up of financial and technology services. With London seeing over £100bn ($125bn) injected into its revenue stream from overseas investors, fintech advances could help homegrown parties locate stronger and more diverse investment opportunities.
For companies who manage assets on behalf of investor clients, property portfolio software is helping them reach their goals more quickly and efficiently. Instead of relying on a string of financial management programmes and platforms, property portfolio software is allowing those handling larger portfolios to collate and disseminate data from one portal. In an age where even the slightest miscalculations can have significant effects on bottom-line growth, the ability to automate the number-crunching of every investment opportunity is sweet relief to those in charge.
What’s more, data analysis is only the tip of the iceberg. When it comes to property portfolio software, every aspect of a potential investment can be run through the system in order to determine its financial impact and likely ROI. Service charges, maintenance fees and fund distributions can all be calculated prior to any equity being released, so investors can be certain they are purchasing a valuable asset.
The same principles can be applied to properties already in a client’s portfolio. In order to strengthen profit margins, investors need to know where their money is being outlaid and how they can reduce superfluous expenses. In an industry where every penny has its place, finding areas to cut costs can result in markedly improved returns. With access to more real-time data and management solutions, investors can begin to forecast notable changes in property value and gain a stronger understanding of when to raise revenue and when to sell up.
Managing costs and driving profit in a surging property market
While profits seem to be steadily on the rise in the asset management sector, inflated costs are undermining much success. Fixed assets such as property require ongoing cash injections and can soon fall short of expected return rates. Maintenance, rental agreements and insurance costs all affect an investment’s bottom line and, across an entire portfolio, you need to be sure you can continue to justify the extra expenditure (especially with the economy suffering such a turbulent period of uncertainty).
Investors are turning to technology in an attempt to trim the fat. In particular, property portfolio software is proving effective in the representative distribution of funds. If an investment syndicate purchases equity in a property, each party will want to know that they are receiving a fair return on their investment. Traditionally, it takes time and meticulous planning to determine the costs and ROI of each individual contribution. By automating the process, property portfolio software slashes preparation time and allows asset managers to make instant decisions on behalf of their clients. In a sector where immaculate timing is of the essence, anything that helps increase productivity levels will ultimately prevent unnecessary spending.
In much the same way as other fintech solutions, property portfolio software offers investors the chance to solve a long-suffered problem: how do you edge out wealthier competitors? In investment, profit margins are everything and, no matter how much capital you have tied up in your portfolio, you’ll always be seeking ways to keep costs down and revenue up. With property portfolio software, you have the tools to make your money stretch further. Millions of pounds are lost each year to poor productivity, with human error accountable for a large proportion of financial issues.
On top of this, a team of staff costs you dearly in wages. If they spend the better part of their day filling out and filing paperwork, they are not optimising the use of business resources. Property portfolio software streamlines the processes your employees and clients lose time completing and allows them to focus all their efforts on generating more revenue from your investments.
By Yaakov Smith