Will Realtors flood the property management market?
Thousands of people became Realtors during the high times of the market. Many of them are now getting out of the business but some are going into property management because it seems to be doing well right now. Even experienced agents are now becoming property managers. So will the property management business become the next bust in a few years because too many people are entering the field now?
Dave,
Good question. We've been property managers 10 years. We recommend to our "masterminds group of other boutique owners" that this is a smart extension of the real estate business. None of them have taken me up on it and unfortunately many are struggling.
It is not for everyone, but just planning on handling regular real estate sales is challenging in these times. Setting up the right niche within PM is ideal!
However, if one considers this business - they must get educated!
All the best, Michelle
Most states REQUIRE that one have actual knowledge AND experience before holding themselves out to be a property manager. Getting education and experience working for a professional property manager is the BEST way to go....just because someone has a real estate license does not mean they have the skills to be a property manager.
Good points ladies! I can see where those who are not educated will get weeded out pretty fast.
The next 3 to 5 years will be interesting. Younger agents who can segeway into property management will be the FUTURE of the profession. I am third generation landlord so as fewer people buy real estate, more institutional investors will take over the "fun" of being a landlord!
It is possible some Realtors will move to the property management. Excellent blog.
John and Dave * they needed to have DONE it ALREADY....Many agents have their toe in property management activity renting UNsold listings without their broker approval.
Doing property management effects brokerage E&O so the decision needs to be made on a brokerage MANAGEMENT level FIRST
In my area agents/brokers seem scared of management. We have only one other company that is any real competition. Fine with me.
Do you think property managers will have to cut their rates if there are lots of new management companies opening up?
I haven't really noticed a significant increase in the amount of property management companies...but that's not to say that more REALTORS aren't advertising on Craigslist, for example.
First * real estate agents wanted to continue to control their listing inventory; NOW, I think they want the income and while many brokers do not want to do property management, they are allowing agents to do some as money gets tight.
I had no intention of doing Property Management a few years ago. If anyone had told me that this what I'd be doing today, I'd have laughed at them. But when you Real Estate sales drop from $29.9M less than $3M in a very short period of time, you have to make changes. I was losing listings to property managers when they didn't sell due to the market conditions. I saw other top producing agents going bankrupt or driving through town with Pizza signs on their cars. I didn't want to be one of them. So, seeing I had been managing my own properties for years, I decided to make it a part of my Real Estate business. It does not pay as well as Real Estate sales, but it pays the bills and offers my clients more services than I offered in the past. Not a bad way to go.
Rich- Kudos to you for adjusting your business to reflect your customers needs and desires. Best wishes on your North Carolina property management business!
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