Do you need a property management company or a real estate agent?
Property management companies vs real estate agents – these are two types of services that you may encounter if you’re a landlord who currently has too much going on and feels overwhelmed. Or you are a property owner but is scratching your head about how to start running it for profit. Understanding their differences will guide you in making a clear decision on which service provider is best for your needs.
Property management companies and real estate agents are not the same thing. People get these confused all the time and use these titles interchangeably. They don’t do it on purpose. In most cases, people have no clue that there is a difference between what property management and real estate agents provide in service. So, landlords are on the fence about what to choose.
Pointing out property management vs Real Estate Agents main roles
Property managers are involved with overseeing the maintenance of the real estate they manage. A real estate agent is someone who helps their clients buy and sell properties. A property management company will generally have more experience managing properties, while an agent can negotiate on your behalf. These are two different jobs with significantly different responsibilities, so don’t assume one is better than the other.
What Real Estate Agents Do
Real estate agents are the key people to approach if you’re looking to sell or buy property. They are licensed professionals who can guide you through the different stages of a sale, from hunting for good property deals to closing one. When you close the deal, the work of a real estate agent is considered accomplished and they typically get a commission from the sale. This is when a real estate agent turns you over to a property manager to help you get into the inner workings of property management.
What Property Management Companies Do
Property managers ensure that a rental is being treated according to the landlord’s policies and ensure that your property meets the standards that you’ve set. These include financial goals, aesthetic and sanitary conditions, or ensuring that all legal requirements are fulfilled.
Below are the main roles these companies perform:
Set up the rent
It’s difficult to set appropriate rental rates. It also takes a lot of time to continually monitor market conditions and give you advice on raising and lowering the rates. Hiring a property management company saves you time and money as they have experience doing this across many types of property.
Collecting rent and arrears
One of the most stressful tasks that landlords have to do is collecting rent and chasing arrears. It causes a lot of friction with relationships and can discourage landlords from actually getting into the property. Your hired management can put in an efficient system for collecting rent from tenants. Updating late payments can also be your property manager’s task. The manager can ensure that your rental income isn’t delayed unnecessarily delayed.
Find good tenants and long-term lease agreements
Going after arrears can actually be avoided when you are able to find good and upstanding tenants. Property management companies will help you sift through tenant applications and get you the tenants that you want. Since they have the resources to find you high-quality tenants, property managers will help ensure that your tenants are respectful of your property and pay rent on time.
If you want to maintain good tenants and keep them happy, you have to provide them with a well-kept property. A property manager will keep you addressing maintenance issues giving both tenant and landlord good peace of mind.
This may include a lot of small but important tasks such as conducting routine inspections, paying bills, record-keeping, maintaining leasing agreements, postage, handing over the key to tenants, and preparing annual statements.
Liaise Between Tenant and Property Owner or Renter
Many misunderstandings can stem from bad communication or the lack of effective communication between the respective parties. A property manager can act as the go-between and be the bridge between the tenant and the property owner. This maintains a more professional system and allows both sides to have mediator to act in their best interest.
Handle Legal Matters Regarding Property Management
Legalities can be a thorn on the side especially when it’s something the property owner has no time for. A property manager allots time for legal matters like preparing for tribunal proceedings and staying up-to-date with tenancy laws. With this information, they can keep the property owner in the loop about chances that may affect the business.
The difference between these two professionals is as distinct as the tasks they undertake. In essence, they can work hand in hand.
Renting out your property can be a challenge. Property management companies provide help for those looking to maximize the profit from their property. They eliminate some of the tasks such as finding tenants, rent collection and repairs. In addition, they provide property owners with advantages and give landlords the freedom to operate their business more efficiently and reap better results.
However, these benefits can be challenging to attain when you face challenges finding a suitable property manager in the first place. So be sure you find the right kind of help for what you need.