Real estate offers a unique combination of services provided by realtors and property management that tend to overlap. This is not unusual because both roles deal with homes, tenants, and houses, but in different fashions. Realtors help you get a property by guiding you through negotiations and paperwork. As reported, the gross average income of a realtor is estimated at $54,600 in New York as of 2022. However, once a property is rented or bought, the work is handed over to a property manager.
The average salary for a property manager is $75,487, with a high end of $119,000 at the top of the range. They deal with everyday activities including tenant screening, collecting rent, taking care of plumbing issues, and numerous others. This raises the question, though: Is it possible for one person to wear both hats at the same time? Let’s see the different steps on how someone can perform both duties best.
Understanding the Roles
Considering the real estate industry as a whole, distinguishing a realtor from a property manager is not a walk in the park. In this section we will elaborate on these roles.
What Does a Realtor Do?
The primary work of a realtor involves helping people with buying and selling property. Realtors walk clients through the intricacies of buying or selling a property, negotiating as needed and guaranteeing that all legal documents are filed appropriately. Realtors understand market trends in their area and are willing to offer invaluable advice on how to market a property expertly from suggesting a home makeover to staging it for an open house.
Realtors mainly focus on closing deals for their clients. Once a property is bought or sold, their work more or less comes to a stop. This means that they work on a relatively short term basis, during the transaction. Even though a realtor’s participation in selling and buying property is minimal, they put in a lot of effort during this period to streamline the entire process.
What Does a Property Manager Do?
Now, regarding property managers, these people come into play once a property has been purchased or rented. Their focus is on the operational and administrative property management services for the rented buildings. Some of their primary functions include tenant and lease administration, supervising the collection of rent payments, managing general maintenance, and resolving tenant problems and complaints.
Property managers are the corporate ninjas that pull everything together, so to speak. They take charge of everything, from a dripping kitchen faucet to reminders about rent payment dates, to ensure smooth sailing within rental properties. Additionally, they refine budgets, manage all pertinent property renovations, and check that all work done meets local policies and regulations. These managers work continuously in contrast with realtors because their roles require relationship management alongside property upkeep.
Can One Person Be Both a Realtor and a Property Manager?
It is possible for a single individual to act as both a realtor and property manager, but some factors need to be considered before taking on both titles.
Different Skill Sets
Realtors work in fast-paced, short-term environments where client satisfaction is prioritized. Marketing a property, negotiating its sale, and executing the small and big transactions is their forte. On the other hand, property management takes a long-term focus on relationship-marketing, consistent upkeep of the property, and satisfaction of the tenants.
Fulfilling these management roles requires a combination of skills. Someone has to juggle being a great salesperson as well as a great manager, and this is not easy for everyone. It takes a great deal of flexibility and ability to use more than one skill depending on the circumstance at hand.
Time Commitment
In terms of time, both roles are equally demanding. Realtors often find themselves trying to catch a break at unconventional hours like weekends and evenings due to client appointments and home showing times. Property managers, on the other hand, are virtually on call 24/7 ready to deal with urgent issues like a broken heater at a property or coordinating a repair at one.
Burnout can result from trying to take on both roles since there are two lines of work that are equally demanding. A customer wanting to see a property and a tenant emergency will pose a challenge in this regard. So, it is crucial to have a plan of action in place and a clear way to classify and structure tasks, though doing so under excessive pressure from multiple roles and responsibilities is quite challenging.
Conflict of Interest
Taking on both roles at the same time can create a conflict of interest. Picture marketing a property at the same time when you are also managing it. The property manager side benefits from smooth cash flow from rentals while the realtor side of you anticipates receiving a commission on a sale. It is rather delicate to manage these conflicting demands because to focus on one will have an equal impact on the other in some way or another.
Resolving these conflicts involves a very careful set of boundaries, ethical consideration, and compromises from both sides. In some instances, these ideas and approaches will strike a fair balance. However, one without proper thought will have to wear too many hats at once and make it difficult for themselves. It can be said that a lot of careful forethought through strategic planning, the right materials and tools for the job, and smart delegation or collaboration will result in a fluid system that works well.
How Combining Roles Could Work
Combining a realtor and property manager might seem like thinking of assigning two roles to one person, but with the right strategies, it is very possible. Let’s figure out some of the strategies that can lead to success in blending these roles.
Using Technology
Multi-tasking becomes easier with the application of technology that can assist you in completing a variety of tasks. For property managers, a software solution can simplify tasks such as scheduling maintenance, tracking payment of rents, and managing tenant communications. Property management software helps keep vital information organized, so nothing falls through the cracks.
On the real estate end, realtors can utilize CRM or Customer Relationship Management systems to manage their listings and client correspondences. A real estate agent can use technology to set reminders and calendar alerts for prospective buyers, property showings, and closing transactions. By leveraging these tools, a realtor and property manager can balance their time on various tasks more effectively.
Hiring Help
It’s perfectly fine to call for backup every once in a while! If your workload is beginning to stack up higher and higher, hiring an assistant could change the game for you. An assistant can take care of the administrative tasks so that you can devote your attention to the more crucial matters in real estate and property management.
Also, remember it is always a good idea to outsource professionals as an efficient maintenance crew or a pest control service. Just picture not needing to handle every single complaint like a leaky faucet or a pesky bug! By using pest control services, you can help tenants remain satisfied with prompt pest control access as they carry on with their daily activities.
Specializing in a Niche Market
Focusing on a particular segment of the real estate world enables you to balance these roles much more seamlessly. Some clients prefer buying investment properties and then leasing them to landlords, only to offer property management services after the sale.
The unique offering of a niche market helps capture and maintain a client base who value specialized services. For instance, real estate investors might prefer a single-entity service provider who takes care of purchasing and managing their properties. This will also help improve your reputation as an all-rounded real estate professional.
Conclusion
Pursuing both roles of a realtor and a property manager is simple yet complicated at the same time. With the right combination of technology, a great team, and a focus on niche markets, it can be accomplished. Whether to combine these roles or not is purely a matter of each person’s individual choice.
If you are looking to dip your toes into both areas, first gauge what you can offer and what resources you have. Implement the appropriate technologies, bring in a skilled team, and determine where you stand in the market. This well-rounded mindset just might be the best way to succeed as a dual-role real estate professional.
FAQs
Is a rental property real estate management within a realtor’s scope of work?
A realtor can take care of rental properties. However, he must appreciate the different skills and functions involved. As noted, realtors buy and sell property. A property manager handles the operational aspects regarding the tenants and the property itself.
What is the biggest difficulty faced when dealing with a realtor that is also a property manager?
The primary obstacle that a realtor also acting as a property manager faces is managing time. The two roles are very demanding in their own respects, and combining them requires exceptional organizational prowess and sometimes more manpower or software to accomplish tasks efficiently.
Are there advantages in hiring a person that does everything?
Of course! The moment you identify a dual-practice professional, they are capable of providing a complete suite of services from property acquisition to property management, which is helpful for investors who require both real estate services and rental management services from one provider.
