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Real Estate Agents looking to supplement income through rentals may get burned

By
Real Estate Agent with Solid Source Property Management, Inc.

I am an investor and professional property manager. Due to the slow down in the sales arena, more and more agents are trying to manage property. What I am finding is that more and more agents are getting themselves in trouble because they really don't understand the differences in selling and managing.

So I thought I would take a few minutes to give some pointers if you are thinking about getting into this busines.

1. Check with your broker to see if you can even manage properties. Most brokers don't allow management due to high E&O premiums.

2. Unless you will be taking full responsibility for the management of the lease - don't select the tenant. Let the owner screen. You can collect the application, but let them make the decision.

3. If you will be managing the lease, then have written application guidelines based on what you will and won't accept.

4. Don't place a marginal tenant without discussion and approval of your owner.

5. Do a written move in evaluation with the tenant at the time of the lease signing.

6. Have a good list of contractors that are available to you at all times. Things don't break during business hours but when people are home with their families. Also have an emergency number for your tenants to call you at any time. I have yet to have a holiday or vacation (in over 9 years) when I didn't get called. It's part of the business.

7. Marketing for tenants is different from marketing for buyers. Renters are looking to move in days not months and they are more concerned about # of beds & bath and the rental amount versus how gorgeous and open the house is.

8. I deal with owners and tenants for years versus the 30-45 days most agents deal with a client. Communication and expectation exchange are incredibly important.

This is just a short list. Unless you have a passion for rentals, I suggest you partner with a company like mine that specializes in property management only. We pay referrals and send the client back to you when they are ready to sell. It doesn't get any easier than that.

Anne Lackey - Broker

www.SolidSourcePM.com

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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Very good suggestions and you are so right!

Jan 31, 2009 12:56 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Thanks for the information.  You should put a link on, so we can find you later...It's easy, click the link button and put on your website...  :-)

Jan 31, 2009 01:00 PM
Marian Gregor-Ann
Keller Williams - Ann Arbor, MI
Arbor area Real Estate

Hi Anne and WELCOME to Active Rain! Thanks for the 'short list'. I feel that you should do a job professionally or don't do it at all.

Jan 31, 2009 01:01 PM
Joe Pascal
Joe Pascal - 5 Star Real Estate - Serving Wilmington, N.C. - Wilmington, NC

Anne,

Very true. There are pitfalls which take up your time and misdirect your career. In Wilmington Real Estate there are many investors who simply can't manage their own properties and need assistance from Realtors. Be careful of what you are getting in to.

Joe Pascal of 5 Star Real Estate in Wilmington, NC

Jan 31, 2009 01:07 PM