If you are a real estate agent looking to add to your skill set and your bottom line, you should consider getting started in property management. This blog post will give you some thoughts on why adding property management to your skill set will help you to earn more income and grow your real estate business. You can also check out my new book; The real estate agent’s guide to property management. The goal of the book is to 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.
If you are a real estate agent who is thinking of getting started in property management, 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.
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 and investors too. This is probably the most traditional method of earning income from property management.
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 an investment or rental property but due to financial or some other life circumstances has 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. After learning the strategies outlined in this book, you will be better prepared to help your clients make the best decision for them. If they decide to rent it, you can help them. 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 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 skill set, 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 to 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 demand 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 agent’s 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.
The Real Estate Agent’s Guide to Property Management is a book that will provide a foundation of knowledge in property management that will let you hit the ground running on day one.
By the end of the book you will have learned;
- What property management is and the role of the property manager.
- How to market yourself as a property manager using the latest digital and internet marketing techniques.
- Meeting with property owners and investors.
- How to price and prepare rental units for maximum profit.
- How to effectively advertise your rental units.
- Showing and Screening Applicants.
- Choosing to work with affordable housing agencies and assistance programs.
- Completing the lease & moving in.
- Managing for the long term by building relationships.
I begin by defining what property management is, and the role of the property manager. I will then go over the basics of operations, marketing, and business systems that can help you be more effective as a residential property manager.
One very important skill will be about how to effectively use digital marketing to grow your business. Like any business, you will need to have a steady stream of leads and prospects to fill your pipelines with new clients. Learning digital marketing strategies will help you gain an edge over your competitors. Having been doing property management full time for close to a decade I have a strong knowledge base in the ins and outs of management. But it has been my deep knowledge of digital marketing that has often given me an edge. If you follow the ideas and strategies that I lay out in this book, you will be able to gain an edge over your competitors as well. Please keep in touch with me and get updates on ideas and strategies for property management and digital marketing for the property management industry here on my blog
