How Do Property Managers Differ From Real Estate Agents?
November 10, 2016
While the real estate industry relies on its many agents to sell properties to investors, those same investors oftentimes rely on property managers or management companies to oversee and protect their investments. Regardless, whether it’s the purchase and sale of property or the ownership and leasing of it, both jobs need to be performed as cost-effectively and efficiently as possible. In either case, there is a great need for these professionals in the greater Phoenix metropolitan area.
Real Estate Agents
As a real estate agent, his or her primary responsibilities involve the selling and showing of properties to prospective buyers. The location and price of such properties is the primary concern of the buyer. At the same time, the real estate agent is tasked with bringing the purchaser and the seller together in order to implement a transaction between the two parties. This involves negotiating, a mutual agreement, and the closing of the transaction. Additionally, the agent must be aware of the laws that apply to such a transaction and do some extensive networking in the process. This will help enhance your business.
Property Managers/Management Companies
Property managers / property management companies are responsible for satisfying the needs of both the investor/owner and the tenant while at the same time ensuring that each party is happy with the property. Managers or management companies work for the individual who owns the property but must also address the needs of the tenant. In addition, their job involves a number of other responsibilities including:
- Accounting and tax reporting
- Attending to a wide range of maintenance and repair issues
- Building long-term relationships with a variety of service providers and vendors
- Collecting monthly rents and keeping financial reports
- Conducting regularly scheduled inspections of the property
- Developing advertising and marketing strategies to attract prospective tenants
However, there are benefits for the tenant as well as the investor/owner. For instance, property management companies can avoid problems that many landlords either cannot or simply neglect. Plus, there is a buffer between the investor/owner and the tenant. This helps them at all levels.
Commissions vs. Fees
When a property sells, the agent who is responsible for the transaction is usually paid a commission for their efforts. By the same token, real estate agents oftentimes work for property investors as well by assisting them in the hunt for investment opportunities. The agent must have a real estate license in order to work for a real estate brokerage company or realtor.
Conversely, property managers/management companies must also be licensed and will charge their clients a fee for their services. In the state of Arizona, businesses and individuals must be licensed if they are collecting rents, leasing properties, making improvements and repairs, and marketing the property in exchange for compensation. You can look online if you need to find the best company to manage your real estate investments.