Asset management takes centre stage in residential real estate

• Recurring income, stronger investor relationships and risk control are pushing asset management to the centre of modern real estate.
• Technology, legal discipline and better tenant engagement are reshaping property management into a higher-value advisory service.
• The winners will be firms that combine systems, data and human judgment to protect income and grow investor value.

Main Highlights

‍At this year’s WeconnectU Annual ENGAGE 2026 Conference at La Paris Estate in Franschhoek, one message came through clearly from the panel discussion on Insights and Innovations in Real Estate: Asset Management and Tenant Relations: the old view of rentals as a back-office, admin-heavy function is dead.

Asset management is no longer the forgotten side of the property industry. It is fast becoming the engine room of long-term value creation.

Hosted by Schalk van der Merwe, CMO of WeconnectU, the panel brought together a powerful cross-section of industry leaders, including Johann van der Merwe, CEO of WeconnectU; Grant Smee, CEO of Only Realty; Berry Everitt, CEO of Chas Everitt; Allen Usher, owner of Property World; Annetjie Coetzee, director at STBB Attorneys; Johan Stander, MD of Urbtec; and Elize le Roux, CEO of Xpello.

What emerged was not just another discussion on rent collection, tenant vetting or property admin. It was a deeper redefinition of what property management should be: a strategic, investor-led service focused on recurring income, risk reduction, better client relationships and long-term portfolio performance.

A recurring theme throughout the discussion was that many agencies originally treated rentals as secondary to sales. But market reality has shifted. Leaders across the panel spoke openly about how recurring income, more durable client relationships and the ability to build enterprise value have pushed asset management into the spotlight.

Grant Smee explained that in the early years, managing rental stock was attractive precisely because it created sustainable recurring income rather than a purely transactional model.

Sales may generate bigger short-term commissions, but asset management builds long-term relationships and predictable revenue streams. That distinction matters. In a volatile market, recurring income can be the difference between a business that survives and a business that scales.

That same evolution was echoed by Berry Everitt, who admitted that traditional agencies often saw rentals as a necessary but uninspiring function. That mindset, he suggested, is changing fast.

The more professional the asset management offering becomes, the more it elevates the role of the practitioner from administrator to adviser.

That shift in language and positioning matters. Several panelists noted that firms need to stop talking about “mandates” and “commission” in the old sense and start talking about management contracts, management fees and investor outcomes. 

It is not just semantics. It is about how the industry sees itself and how clients see the value being delivered. Landlords are not just landlords. They are investors. And investors expect more than rent collection. They expect insight, planning, protection and performance.

That is where technology is becoming indispensable. The panel made it clear that the future of asset management will belong to those who can blend systems and human intelligence.

Johann van der Merwe and others pointed to the growing role of proptech in making businesses more measurable, more scalable and more client-focused. Good software is no longer a nice-to-have. It is infrastructure.

But the discussion also carried a warning: technology alone is not the differentiator. The real advantage lies in how agencies use data and systems to improve judgment, communication and client service.

Panelists argued that AI and automation should free property professionals from repetitive tasks so they can spend more time doing higher-value work: advising investors, solving problems earlier and building trust.

That is especially relevant in utilities and operations. Johan Stander highlighted how utility data can move from being a billing exercise to a real investment tool.

When data is measured accurately, billed transparently and recovered properly, it gives landlords and managers better visibility into risk, leakage, consumption and operational inefficiencies. In other words, data is no longer just for reporting. It is a management asset.

Another major takeaway from the discussion was that profitability in property management does not come from charging less. It comes from understanding the client better and building a stronger value proposition around their real needs.

One panelist described how risk mitigation services were packaged into the management offer, allowing fees to rise because the client could clearly see the value being added. That is a major lesson for the industry. Competing on price is a race to the bottom. Competing on value is how serious firms grow.

Tenant relations were another core focus. The panel was frank about the pressure points that often damage both investor returns and agency capacity: arrears, poor vetting, maintenance failures and escalating disputes.

Elize le Roux made the practical point that many problems can be reduced early through proper vetting, proactive engagement and disciplined processes. By the time a matter becomes an eviction, the cost to the owner is already substantial. The message was clear: prevention is cheaper than recovery, and early intervention matters.

From the legal side, Annetjie Coetzee reinforced the importance of getting the basics right. Watertight agreements, regular inspections and clear risk processes remain fundamental.

She also highlighted the increasing role of mediation as an alternative to costly court-driven disputes. That is an important shift. The future of property management is not only about systems and scale. It is also about how quickly and intelligently conflict can be contained before it destroys value.

The panel also repeatedly returned to the human dimension. For all the discussion about AI, data, systems and operational efficiency, the strongest consensus was that trust remains the real differentiator.

Property management is still a people business. Owners want confidence. Tenants want communication. Investors want to know there is a plan. The agencies that win will be those that combine operational sophistication with relationship depth.

The most forward-looking idea of the session may have been this: asset managers should stop seeing themselves as admin handlers and start acting as investment partners. Many property owners are not sophisticated investors, even if they own one or two properties. That creates a huge opportunity for agencies to guide them more strategically, not just on tenants and maintenance, but on yield, leverage, capital growth, risk and portfolio performance.

That repositioning could fundamentally change how the profession is valued. If practitioners become trusted advisers rather than rental clerks, the industry will attract better talent, command stronger fees and build more resilient businesses.

The way forward

‍The panel at La Paris made one thing unmistakably clear: asset management is no longer the side business of real estate. It is becoming the main business.

The firms that thrive in the next decade will not be those chasing the next quick transaction. They will be the ones building recurring income, protecting investor cash flow, using technology intelligently, managing legal and tenant risk early, and turning ordinary landlord relationships into long-term investment partnerships.

For the South African property industry, this is the real opportunity. Asset management is being professionalised, elevated and redefined. And if the insights shared at WeconnectU are any guide, the sector is only at the beginning of that transformation.

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