Job description: Asset manager

Real estate investors, whether individuals or companies, don't always have the time or financial expertise required to effectively manage their property portfolios. Despite its solid reputation, real estate is not without risk and remains subject to market fluctuations and economic conditions. To reduce risk and improve the profitability of their assets, investors can use the services of a real estate asset management company, where one of their main contacts will be the asset manager.

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Disambiguation of asset management in France

To begin, it is important to properly understand what the term "asset manager" in France. This English term does not represent exactly the same profession in the United States as in France.

In the US, an asset manager can also be called a portfolio manager, and their primary role is to their clients' financial assets financial investment strategy (stocks, bonds, real estate), assess the level of risk they are willing to accept, and then manage their portfolio. They can make buy and sell decisions without consulting the client (unlike a broker), but must adhere to the limits set by the client. As they represent the client in the financial market, the asset manager is responsible for the proper execution of transactions .

In France, asset management is primarily used in the real estate sector . Within the asset management company, it works together with investment managers, portfolio managers, property managers, and facility managers.

The work of the real estate asset manager

Main objective 

The goal of a real estate asset manager is to manage a portfolio of properties and ensure their appreciation and optimization. To achieve this, they manage the commercial, administrative, and financial aspects of all the properties under their responsibility. They are considered the representative of the investor-owner.

Preparatory missions

When an asset manager meets with their client at the start of an engagement, their primary focus must be establishing a strong rapport and laying the groundwork for a collaborative partnership. The asset manager assesses the value of the real estate assets in the portfolio, as well as how anticipated market trends might impact this value. Based on the assessed value and associated risks, the asset manager then develops a wealth management strategy in collaboration with the client.

Real estate consulting services

The precise role of the asset manager can vary between different asset management companies. In some cases, they simply provide advice , while in others they have a mandate to carry out certain operations themselves, thus functioning as an investment manager.

At a minimum, the asset manager will advise clients on investment opportunities : purchases, sales, renovations, or conversions. They must also advise clients on the allocation of real estate assets : what rent to charge, which properties to use for residential, commercial, or professional purposes…

Support missions

If the client makes the investments themselves, the asset manager will support them in carrying out all their transactions. With in-depth knowledge of the market, regulations, and finance, the real estate asset manager assists their client with purchases, sales, and also with the preparation of tax returns.

Financial and legal monitoring missions

The asset manager is responsible for managing the cash flow of real estate investments within the portfolio, or at least ensuring its proper management. They must also monitor all financial aspects related to the investments, such as managing mortgage loans and their potential renegotiation based on changes in the financial situation. All legal aspects related to the investments must also be overseen by the asset manager.

Reporting tasks

Of course, the client must be kept informed of any developments within their portfolio. The asset manager is responsible for this information, although in some companies a portfolio manager will take on this role.

Knowledge and skills of the asset manager

This real estate investment profession requires comprehensive knowledge of the property sector : property valuation, cost estimation for renovations, urban planning regulations, taxation, and investment strategies. The asset manager must have a thorough understanding of the real estate market and its financial aspects, as well as all relevant legislation that can influence investment decisions (e.g., the Pinel Law). With this knowledge, the asset manager can develop investment plans that meet clients' expectations, while leveraging industry best practices to maximize returns.

In terms of skills, an asset manager must be a responsible individual with strong interpersonal skills . Their professional success depends on their ability to understand and address the precise needs of their clients. Taking too many risks or not enough risks could lead to losing clients and suffering reputational damage. Once the scope of their mission is defined, the asset manager must also demonstrate initiative and work proactively. They must constantly monitor market trends, identify new opportunities (such as new construction projects), and quickly assess their potential.

An asset manager must also possess strong negotiation skills . These will be invaluable when guiding clients through the investment process. A skilled negotiator will enable clients to acquire real estate at the best possible price or avoid potential pitfalls. They will also be responsible for negotiating and renegotiating mortgages. This negotiation skill will also be crucial in their dealings with clients. Often, asset managers will identify opportunities that clients may not fully grasp due to a lack of economic, tax, or legal knowledge. In such cases, the asset manager must be persuasive, clear, and possess strong analytical skills to explain the situation in terms the client can understand and ultimately convince them to make the investment.

The salary and career path of an asset manager

In France, an asset manager can start at an asset management company with a starting gross annual salary of €35,000 to €50,000 . With experience and a growing reputation, a senior asset manager can aim for €100,000 gross per year . Asset managers typically reach this position after completing a solid business and/or real estate education with a specialization in asset management, at the Master's level (Bac+5 ). Their career can progress to becoming a fund manager (managing a broader range of assets and funds) or heading an investment department.