Mastering International Real Estate Management

How to overcome the complexities of a global real estate portfolio to maintain oversight and control over your properties

It is common for a family office to own several real estate properties around the globe. I will not talk here about investment real estate, but rather secondary residences in prestigious locations like the trendy capitals, ski & golf resorts, seaside properties, among endless possibilities.

Handling such a private portfolio of luxury properties to a high level of expectations, each with their own needs and characteristics, is a challenge for the dedicated manager.

In fact, an international real estate manager needs a specific set of skills and qualities to effectively manage properties across different countries and markets.

Implementing the right strategy as a starting point can help master the whole process. Here are my best tips to do it :

Top 10 qualities required of an international real estate manager

1. Cultural Awareness and Adaptability

   – Understanding local customs, norms, and business practices is crucial when managing properties in various countries. Being adaptable and sensitive to cultural differences allows for better human relations and more effective local partnerships.

2. Strong Communication Skills

   – Excellent multilingual and cross-cultural communication skills are essential when dealing with contractors, local service providers, and legal authorities from different regions. Being able to communicate clearly and professionally across languages and cultures helps avoid misunderstandings. Not to forget communication within the family office and with the principals.

3. Financial Acumen

   – An international real estate manager must be skilled in financial management, including budgeting, accounting, and forecasting. They should also understand currency fluctuations, international tax laws, and different cost structures across markets to make sound decisions.

4. Knowledge of Global Real Estate Markets

   – Having a deep understanding of real estate trends and economic conditions in multiple countries is essential. This includes knowledge of market dynamics, or geopolitical conditions that can impact property values, tenant demand, and especially operational costs.

5. Excellent Organizational Skills

   – Managing multiple properties across time zones requires top-notch organizational and multitasking skills. The ability to manage several projects simultaneously while keeping track of details like human resources, contractors interventions or maintenance schedules is key. Strong project management skills are mandatory.

6. Problem-Solving and Decision-Making Abilities

   – Real estate management often involves solving unexpected problems like technical issues, neighbours disputes, or legal complications. A strong problem-solving mindset and the ability to make informed, timely decisions are critical, especially when operating remotely.

7. Technological Savvy

   – Familiarity with property management software, virtual communication tools, and automation technologies can greatly enhance efficiency. Being able to leverage digital solutions to manage properties, handle finances, and communicate with local teams is a must for effective global management. The principals will also appreciate visually nice reporting, with updated data.

8. Attention to Legal and Compliance Issues

   – An international real estate manager must have a strong understanding of local real estate laws and regulations, tax policies, and zoning rules in each country where they manage properties. Staying compliant and up-to-date with changes in legal frameworks ensures smooth operations and avoids costly legal issues.

9. Leadership and Team Management

   – Managing local collaborators and teams in various regions requires strong leadership and delegation skills. The ability to build trust, motivate teams, and manage remote operations is crucial for maintaining the same high standards across the family’s portfolio.

10. Customer-Oriented Approach

   – This is a family office specific, as the manager will have to treat the principals, their families and guests, like VIP customers. To ensure their satisfaction, it is important to know their habits, their taste, and their overall expectations which, even if the standards are the same, are probably different from one property to another.

My dedicated file classification system

If you have seen my previous article about building the ideal file classification system for the family office, you will easily place this detailed snapshot.

Each property will have this major file integrated in the general family office system.

Real-estate investments are in another folder, with adecuate financial reports.

I would say the most important skills in my case are language/cultural, and what is most useful is my experience on the ground as a single property manager.

Hoping this article can be helpful to my fellow family office professionals out there. Share, comment and contact me if you wish to discuss the topic!