Scope of Services
Asset managers provide a vast array of management oversight, analysis, and support services for asset owners. The specific range of services provided varies; but most asset managers, to some degree, provide the following services:
1. Attend the necessary meetings to gain current knowledge regarding the ownership and management structure of a property and the working relationship between the two entities.
2. Represent ownership interests in dealings with asset management and act as ownership’s advisor concerning management and financial performance matters related to the operation of the asset.
3. Meet with senior executives of the management organization to establish a working relationship with the corporate-level representatives responsible for the management and operation of a property.
4. Conduct interviews with members of the on-site management team to gain an understanding of their experience levels and general responsibilities and cultivate and develop a working relationship.
5. Analyze the property's monthly financial results and review any significant variances from the budgeted figures with designated representative(s) of the management company to ensure an appropriate plan of action is developed, and to closely monitor the implementation of corrective actions.
6. Meet with management representatives on a regular basis to evaluate and monitor sales and marketing and operational initiatives.
7. Visit the property on an ongoing basis to ensure that the management team is effectively managing, marketing, and maintaining the asset.
8. Monitor and evaluate guest satisfaction levels to ensure a high level of repeat business.
9. Evaluate the strengths and weaknesses of key management staff on a continuing basis and inform ownership on the experience and effectiveness of the on-site management team.
10. Monitor the property’s operating expenses of the property to ensure that effective cost-containment practices are in place, that operating expenses are inline with those of comparable properties and industry standards, and that property management is maximizing cash flow.
11. Participate in the development and approval of the annual sales and marketing business plan, capital improvement plan, and operating budget as permitted by the terms of the management contract.
12. Evaluate all pricing strategies and yield management practices to ensure that an asset is maximizing revenue.
13. Analyze monthly status reports provided by management, and compare the reports and data therein to the operational goals set by management.
14. Monitor market conditions and assess how supply and demand characteristics impact the asset’s revenues and profitability.
15. Attend management meetings on a regular basis to keep abreast of all activities related to the marketing and management of the property.
16. Communicate and meet with ownership on a regular basis to keep it apprised of activities and events associated with the property.
17. Provide written reports to ownership on a regular basis (monthly, quarterly, and annually) that contain salient issues related to the management and financial performance of the asset.
In addition to these services, asset managers may provide strategic planning advice, acquisition and disposition services, tax planning, and alternative use evaluations.