Property Management...a GREAT Economic Buffer to the Real Estate Business...

By
Real Estate Agent with Fox Real Estate

 

Kudos to those of you Brokers, who offer agents the ability to do Property Management as part of their business.  Especially in this economy!  Unfortunately, many traditional corporate real estate companies do not promote or allow their agents to prospect that area/aspect of business and why many agents quit or leave the business before giving it a chance to florish.  The simply reason the majority of people who come into real estate fail is because they can't endure and live through the valley while waiting for that peak.

Property Management, is a keen business decision for generating a continuous stream of income from clients/management contracts in a timely manner because EVERYONE needs housing! So that aspect of the business is a wonderful money buffer and not leave one totaling reliant on having to wait for a real estate closing to take place before getting paid.

Waiting for a closing ONLY affects the agents!  Realtor.com estimates that 95% of us don't make enough.

As agents, we work the hardest and are the large foundation of the pyramid.  The corporate owners, their managers and administrative staff are not affected and thrive regardless of how long it takes to close!

The corporate top of the Pyramid all have a cushy, continuous stream of income!  Market shares, salaries and reap a hufty percentage of the hard earned commissions from the PIE that AGENTS bring to the table!

So while agents are trained to GO FOR IT!  They need to look at the real estate business model and honestly assess the obvious risks and protect themselves against the valleys which is typically not discussed with managers who are trained (brain wash) agents in thinking that are lucky to be on board and that the company is doing them the favor in among other things "name recognition" which is a whole other topic.

Agents should consider doing Property Management for a continuous, renewed income and...

1) Affiliate themselves with companies that do Property Management and negotiate your commission for renewal business.

2)  If you prefer doing sales and rentals with your current broker or one that doesn't do or want the liability of property management then a business development attorney could advise you on starting/having a separate business and navigate how as a 1099 independent contract in doing both. 

3) When your license is up for renewal spend a few dollars more and get a Broker's License.

ENTREPRENEURS?

As always Best Wishes for YOUR Success!

Kris Fox

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property management
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Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Agents should really know the business and be willing to spend time on management issues.There are agents who do not even screen tenants' rental history .

Apr 03, 2010 12:43 AM #1
Rainer
44,945
Kris Fox
Fox Real Estate - Rockport, MA

Thanks Gita...proper screening of a prospective tenant is important in the rental business and with an estimated 25% of people currently losing their homes a person's "credit" is not what is used to be in this economy as those folks need housing as well...

My Blog...was to raise awareness for AGENTS to think about and chose the best path to prosper in the business...specifically Property Management.  Where they have the right to prospect and secure their own "building" listings not just "rental" listings.  So they can manage all aspects of the business for the owners who wish someone else to do this for them. 

National corporate real estate companies typically only do this in Urban areas, so Commercial Companies get most of that business in smaller cities, the suburbs and remote/rural locations because the "corporate" companies don't want the liability and/or do not allow agents to secure such business for themselves.  The business of Property Management for a landlord. 

For those MOM & POP shops that do, many times they give the agent who brought in the Landlord crumbs off the table for such a lucrative, continuous renewal of business and/or rental listings. (i.e. 10%) and they keep the majority of the money for themselves.

Naive agents are not taught property management and therefore do not know so much of this vast part of the Real Estate world because they are only spoon fed what real estate companies and owners want them to know...to generate the most business for themselves "off not for" the agents.

Most Real Estate business models do not value the agent on purpose!  This is no accident. They were created so the majority of agents would bring in business and they could care if they stayed or built up a career worth having. 

A lot of Real Estate models PREFER that agents come and go!!

Corporate and private owners use contracts where they keep all the agents' clients/business done during their affiliation, so upon departure they leave with NOTHING. This includes "residential and/or commercial listings". Companies continue to prosper while agents lose out. 

This is WHY agents need to keep their eyes open, know the facts and educate themselves for THEIR best interest & benefit.

 

Apr 03, 2010 12:58 AM #2
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Rainer
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Kris Fox

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