Are you a Real Estate Agent? Include property management services to grow your business.
If you are a real estate agent looking to add to your skill set and your bottom line with property management, then this book is for you. The real estate agent’s guide to property management will show agents and managers how to use simple but cutting edge digital marketing ideas and technology based systems to become a more effective property manager or leasing agent.
A question to ask yourself is, why should I provide property management services? There are a number of reasons to get involved in property management. It can be a wonderful compliment to your existing real estate business. With more and more people choosing to rent, it means that the growth opportunity for you to expand your services is huge right now, and the number of people who are looking to rent a home or apartment, will only grow larger. Meaning your opportunity to get involved in the “renter economy,” is now.
What Type Of Management should I offer?
There are a number of different types of property managers. The most common way to get started is in residential property management. You can represent tenants by helping people find a home or apartment to rent and you can earn a commission for this. You can also provide ongoing management services to property owners, the details of which we will discuss throughout this book. This is probably the most traditional method of earning income from property management. An agreement will exist between the broker and property owner that will spell out the services provided by the property manager (agent). This is your property management agreement. If your broker or real estate board does not have a property management agreement, find an attorney who specializes in property management and have them help you.
When it comes to representing owners, it’s not just investors and businesses who own rental property. In fact, most rental properties are owned by individuals or small investors. There are also a large number of people who have become what is called an accidental landlord. Which refers to someone who may not have intended to own investment or rental property, but due to financial or some other life circumstances have had to make the decision to rent out the home they own. As these situations become more common, you as the real estate agent, have the ability to help not only investors, but you can also help people who have to rent their home out but aren’t prepared or knowledgable to do so. It is also becoming more common to find yourself with a listing client who says they are considering renting out their house. Not because they are forced to, but because they see it as a good opportunity. Right now there are a tremendous number of homeowners who want to rent their house because it might be a way for them to earn some extra money or cover the mortgage payments. Also, if they decide to sell you can help them with that too. In my career, I have focused mainly on property management exclusively. However, I still do a fair number of sales each year, not because I am trying to get listings or do sales, but because I have an existing relationship with the owner of the property already. So when the time comes for them to sell; they call me, because they know me and trust me.
What’s the benefit of offering management services?
What I’ve always liked about the property management side of the real estate business is the recurring monthly income. As a real estate agent working on commission only, our paychecks can grow or shrink based on lots of outside factors. But, with property management, there tends to be less volatility once you are up and running. Ensuring steady income as a real estate agent is not always that easy. By choosing to add leasing and management to your skillset, you can create a more reliable monthly income and develop relationships with property owners who will use you as their agent when it’s time to sell or buy their rental properties. This approach will provide you with income streams from the management services, and from the commission on the sales as well.
With a little knowledge and a little effort you could go out today and land a property management client and start building your monthly management income. As real estate agents, we know that our income can sometimes be sporadic and inconsistent when it comes to sales commissions. But there is a way to earn a more steady and reliable income through real estate and that is through performing the services of a property manager to rental property owners. Generally, you will receive a percentage of the collected rents. You will also be responsible for handling maintenance calls and rent collection and processing. Property management can be very rewarding if you are prepared and knowledgeable.
The top three reasons to include property management as part of your real estate business are;
- Create a more reliable income.
- Build long term relationships with investors and property owners for repeat business.
- Grow with the new demands of the “Renter Economy”.
Clearly there are lots of great reasons to be involved in property management. However, without proper knowledge, you will quickly find out that property management has its own unique set of challenges. As a real estate agent, we don’t often receive any training when it comes to leasing and management. So much of what we learn is focused on the sales side of the business. How to work with buyers and how to list homes for sellers. When it comes to property management and leasing, most agents aren’t ever introduced to the opportunities. Yet, when asked; it turns out a large percentage of agents would be interested in learning how to manage homes and apartments.
Many agents don’t even realize it’s an option, and therefore don’t even think of considering it. Which can be an advantage to the agent who is starting now. You will have a skill set and professional knowledge that will only grow in demand.
