Did you know that 53% of home buyers struggle to find the right property? Fortunately, real estate development makes the process easier.
It is essential to hire real estate agents and property managers. This is important if you want to have a successful property investment experience. These experts make certain that you make the best decisions in the industry.
Before you invest in real estate, you should understand what real estate development and property management are.
We explain the fields and the differences between the two entities further below.
What exactly is real estate management?
Real estate management is used for any type of rental property, whether it is residential or commercial. The management company assists the landlord in managing the day-to-day operations of the rental property or portfolio of properties. The manager oversees rental operations as well as property maintenance and works with a real estate agent to buy and sell properties.
The Functions of an Estate Manager
- The Estate Management role is primarily administrative. Estate Managers are in positions of authority and are in charge of the staff. They also supervise services that take place in and around the estate’s homes.
- An Estate Manager will spend a significant amount of time in the office managing budgets, creating manuals, and planning events.
What is property management?
Property management is the act of overseeing and managing the business operations of a real estate property, which is frequently done by a third party. It applies to both residential and commercial properties.
Property management is in charge of building repair and maintenance on behalf of the property owners.
Property managers screen tenants, draft leases and deal with tenant problems and complaints. They also ensure that the property is in compliance with state laws and that taxes are paid.
The majority of property owners prefer to work with property management companies. This is due to the field’s requirement for administrative experience.
A Property Manager’s Duties
- The Property Management role is in charge of the estate’s upkeep and maintenance. They supervise vendors who perform various tasks on and around the property.
- The Property Manager’s responsibilities are centered on the physical and mechanical aspects of the property. These responsibilities may include learning how to operate and maintain the estate’s equipment. They also collaborate with service providers.
- Property managers are also expected to provide hands-on assistance with handyman tasks. These are typically services that do not necessitate any specialized knowledge or trade.
What’s the difference between Real Estate Management and Property Management?
Real estate and property management are two distinct industries with some overlap. Unfortunately, to the uninitiated, these are mixed up and lumped together. Because of the instability in the housing market, this mix-up frequently causes potential property managers to forego a career in that industry.
The differences between the two are:
- The real estate industry handles property listings and sales on behalf of property owners, whereas property management handles all aspects of property management on behalf of the property owner, including maintenance, repairs, tenant issues, and more.
- In contrast to property management, which is a contractual business, real estate is a transactional industry. A contract between the property manager and owner specifies that the manager will get a portion of the rent collected in return for management services.
- The property management industry remains a vibrant and thriving business, while the real estate market is often up and down. When the real estate market is down, many property owners will turn to property managers to rent out their properties until the market recovers.
Can a Real Estate Agent Also Work as a Property Manager?
Adding property management to your real estate duties can be an excellent way to diversify your income, but check your state’s requirements first. To manage a property that you do not own, you must have a real estate broker’s license or be supervised by one.
Property managers may also be governed by the Institute of Real Estate Management or the National Association of Residential Property Managers, depending on your state.
Many real estate agents dislike property management because it diverts their attention away from their primary business of buying and selling. Others, on the other hand, see the value in an additional source of income, a lower rate of competition, a shorter sales cycle, and the variety of duties that property management provides.
Property managers must have “knowledge of the agency, contracts, fair housing, rentals, and leases,” as well as “additional knowledge” in business administration, marketing, purchasing, credit extensions, accounting, advertising, insurance, repairs and maintenance, taxation, and public relations.