Episode 010: Property Management and Real Estate

Should real estate agents enter the realm of property management? It’s natural to want to cover 100% of the real estate marketplace. Whether your client wants to buy, sell, rent, or invest you have your client covered.

But, in our opinion, based on having managed properties for the last eight years, real estate sales and property management are about as far apart as you can get.

Benefits of Property Management

Some of the benefits of incorporating property management into your real estate sales business include:

  1. Exploding your sales
  2. Predictable monthly cash flow
  3. Creating more freedom by building a staff

Property Management Isn’t for Everyone

The most successful real estate agents have an outgoing personality. At the very least, they have an amiable personality.

And these two personality types aren’t always the best personalities for property managers. Sometimes a property manager needs to say no.

Property Management May Be Right For You

Property management may be a good fit for you if:

  1. Your selling price is low and your rental commission is high then property management may be right for you
  2. You are more analytical and want to use property management as a real estate lead generator
  3. You have the time

Tips for Starting in Property Management

  1. Cherry picking your clients will assure that you are working with like minded customers
  2. Put your management company and real estate company together under one name
  3. Educate yourself on the rules of your state and local area
  4. Determine what roles your current staff could fill
  5. Have the real estate sales person be the front line sales person when talking to landlords and try to convert landlords into sellers.
  6. Make sure your broker will allow property management
  7. Don’t let the sales slip just because you want to do rentals.

Also Mentioned In This Episode

Michael Hellickson’s episode
NARPM
Melissa Prandi