Difference between Asset Management vs. Property Management
I am applying for a CRE investment firm in a major US city, and wanted to know if anyone knows the difference between Asset Management and Property Management. I have worked as a leasing agent, and was wanting to know what the 'asset' part of asset management was, considering the companies assets *are* properties. 

Im sure this question is silly, but would love some insight that anyone can provide.
[{"id": "grjoykd", "text": "Property management manages all aspects of the physical property. Coordinating move ins, maintenance, lock outs, answering calls for busted pipes at 3 am. All things basically physical and some things none like property and CAM accounting. Depending on the company you cover a small number of geographically close properties.\n\nAsset management is a roll up of all the properties in the portfolio. Several property managers will report to asset management. Their goal is to help drive the strategy of the company and to guide and track what is happening at the properties.   \n\nPut more simply property management generally reports to asset management.  \n\nAnother caveat depending on the company, the terms can be used interchangeably, or the property manager may basically do asset management as well. Rly depends.", "replies": [], "depth": 1}, {"id": "grjp0sf", "text": "Property management deals with the day to day of the property. This usually includes tenant, vendors, and repairs for the property.\n\nAsset management works the bigger picture. They are looking at where the owner wants the property in the coming years.", "replies": [{"id": "grpay2k", "text": "Generally this though I\u2019ve seen property management companies declare themselves asset managers. It\u2019s become the marketing shtick of a few.", "replies": [], "depth": 2}], "depth": 1}, {"id": "grjp1gw", "text": "Assets involves when to do capex, sell, refinance.. etc... it\u2019s about positioning the property to create the most value. Property managers are more \u2018in the weeds\u2019 dealing with tenants, maintenance crews and the like.", "replies": [{"id": "grjpcd8", "text": "This is the best answer. Asset management is managing investors, debt, property strategy and repositioning, dispositions, acquisitions, etc. Property Managers manage actually physical property, tenants, maintenance, rent collection, etc.", "replies": [{"id": "grjtqzb", "text": "Yeah, in the initial interview the guy I would be working with mentioned stuff like repositioning. Any suggestions on what to read up on more before I get to the next round? I want to be much more familiar with this than I am now.", "replies": [{"id": "grk3z4c", "text": "Time to brush up on your industry terms. As a guy who did leasing in college and moved into CRE after, I certainly wasn\u2019t familiar with cap rates and historical financials going in. \n\nGenerally I\u2019d recommend studying up on basic underwriting things. Ie: cap rates, cash on cash return, IRR etc. Then I\u2019d make sure I understand P&amp;L\u2019s, T12\u2019s and rent rolls at a high level.\n\nNext round of interviews you ask for detail on what your responsibilities will be as an asset manager. Will I be interacting with property managers? Will I be maintaining a report with investors? What will my role entail for on acquisitions and dispositions? Am I tasked with building broker relationships? Etc.", "replies": [{"id": "grkzo7y", "text": "Thank you, very helpful information!", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "grjp83d", "text": "Property management is on the ground, daily operations, repairs &amp; maintenance. Asset management is much different. Asset management is financial management. Operating an asset to its best financial use, leasing, cap ex, tenant improvements, repositioning, conversions, dispositions, proformas, etc. As I said, one is daily operations, the other is financial performance. If the plumbing backs up or the yard needs maintenance, that is property management. If you need to find a new tenant, do renovations, put the building up for sale, that is asset management.", "replies": [], "depth": 1}, {"id": "grjq2an", "text": "I\u2019ve worked for three med to larger PERE shops and all did things rather similar   We had designated positions/roles that were \u201cAsset Managers\u201d (in-house) who would be responsible for 4-10 assets (divvied up by region, type, etc). We would outsource third-party property managers for all assets. \n\nPM\u2019s would do all the things you would think but basically outlined in PM Agrmt (certain reporting, accounting, market and leasing functions, tenant communication). \n\nAM\u2019s take more of an \u201cowner role\u201d to develop and execute a strategy at the asset level. Performance monitoring , quarterly/annual asset summaries, Higher level negotiations (with vendors/tenants, buyers, lenders). \n\nWe also had portfolio level roles that would work closely with the AM\u2019s to for fund level strategy and analysis. \n\nNote some shops bill themselves as \u201cfund asset managers\u201d just to add to the lexicon. \n\nHope that helps and shines light. I\u2019m sure others will have a more coherent (and better proofread!) response.\n\nOh and good luck with the job application!", "replies": [{"id": "grjtlyr", "text": "Thanks for this response, it was very helpful!", "replies": [{"id": "grju7n8", "text": "No problem! In 3 years your job title will be Asset Manager but your secret will be safe here. Ha! All the best", "replies": [{"id": "grjv4ae", "text": "Lol that would actually be hilarious if I do end up getting this position.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "grjq93g", "text": "An assent manager in institutional real estate is like a portfolio manager in the buy side equity/debt investment business.\n\nThey pick winners, manage the property managers or GMs for a hotel. Very common position in hotel firms/funds.", "replies": [], "depth": 1}, {"id": "grk3uva", "text": "Another way to look at it, asset management  is about the strategy and property management is execution.", "replies": [], "depth": 1}, {"id": "grkg2de", "text": "as a property manager, your job is to manage the property. efficiently running/planning/managing operations. your goal is to keep it leased, well marketed, contain costs, and increase revenue while dealing with the day to day (or implementing programs and training and management for those who do)\n\nas an asset manager, your job is to manage the asset... as in the investment in the physical property AND the value thereof, on behalf of the owner. your goal is to execute their vision to obtain their desired results (CF and/or appreciation)", "replies": [], "depth": 1}, {"id": "grkxmxe", "text": "One handles the asset, one handles the property!! Loans are typically bundled with other loans! Typically, the asset management, hires the property management.", "replies": [], "depth": 1}, {"id": "grkzf45", "text": "In addition to many of these excellent answers, the property manager is focused on the income statement while the asset manager is focused on it and the balance sheet.  So maybe study up on those as well.", "replies": [{"id": "grkzicj", "text": "I love this explanation. I feel like it encapsulates things well.", "replies": [], "depth": 2}, {"id": "grmtwse", "text": "Lots of exceptions to this idea......maybe an over-generalization.\n\nMany asset managers have their eye on that rent roll, NOI, and P&amp;L (for DCF calcs), budgeting, etc, which are about as Income Statement as it gets.\n\nIf a property manager is responsible for collections they should have an eye on receivables (balance sheet).  If a property manager approves vendor invoices, they should have an eye on payables too.\n\nThe balance sheet and income statement are so inter-connected in many ways I really don't advise anyone to generally focus on one more than that other.\n\nI could poke more holes though the idea if I had time.", "replies": [], "depth": 2}], "depth": 1}]