{"id":8508,"date":"2017-12-08T11:13:16","date_gmt":"2017-12-08T19:13:16","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=8508"},"modified":"2017-12-08T11:13:55","modified_gmt":"2017-12-08T19:13:55","slug":"property-management-real-estate","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/property-management-real-estate\/","title":{"rendered":"Should I add Property Management to my Real Estate Business?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8510 size-full\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/12\/Should-I-add-Property-Management-Services-to-my-Real-Estate-Business_.png\" alt=\"property management real estate\" width=\"560\" height=\"315\" srcset=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/12\/Should-I-add-Property-Management-Services-to-my-Real-Estate-Business_.png 560w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/12\/Should-I-add-Property-Management-Services-to-my-Real-Estate-Business_-300x169.png 300w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/12\/Should-I-add-Property-Management-Services-to-my-Real-Estate-Business_-352x198.png 352w\" sizes=\"(max-width: 560px) 100vw, 560px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">At some point in every real estate broker\u2019s career \u2013 and probably more than once \u2013 they will be asked, \u201chave you ever considered going into property management?\u201d. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your initial reaction to this question as a real estate professional is \u201cNo way, no how!\u201d then let\u2019s take a realistic look at how property management services, and your real estate business, could work together.<\/span><\/p>\n<h2>Evaluate the Logistics<\/h2>\n<p><span style=\"font-weight: 400;\">First are the business basics to consider before entering the property management field:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">While demographics might show that <\/span><a href=\"http:\/\/www.ricelasvegas.com\/las-vegas-rental-market-statistics.html\"><span style=\"font-weight: 400;\">Las Vegas<\/span><\/a><span style=\"font-weight: 400;\"> residents are almost 50% renters, you need to actually consider the local occupancy and vacancy rates in your area? Just because <\/span><i><span style=\"font-weight: 400;\">your<\/span><\/i><span style=\"font-weight: 400;\"> real estate brokerage gets calls for rentals several times a week doesn\u2019t necessarily mean that there is a need for you to fill.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Interview top-rated property managers in your area to discuss the two key factors: time and money \u2013 how much of a time commitment is involved compared with the financial rewards. Evaluate all the tasks that you\u2019ll have to <\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/what-does-a-property-manager-do\/\"><span style=\"font-weight: 400;\">do as a property manager<\/span><\/a><span style=\"font-weight: 400;\">. Are these jobs you have the time to manage for the <\/span><a href=\"https:\/\/www.payscale.com\/research\/US\/Job=Property_Manager\/Salary\"><span style=\"font-weight: 400;\">income<\/span><\/a><span style=\"font-weight: 400;\"> you will earn?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Since you already have a real estate business, obviously you know the real estate rules and regulations, Fair Housing laws, and the market. In <\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/types-of-property-management-licenses\/\"><span style=\"font-weight: 400;\">most states you are qualified<\/span><\/a><span style=\"font-weight: 400;\"> already for property management, but there are exceptions so confirm that your state\u2019s rules aren\u2019t cost or time prohibitive.<\/span><\/li>\n<\/ul>\n<h2>Consider Your Professional Goals<\/h2>\n<p><span style=\"font-weight: 400;\">Now let\u2019s revisit your real estate career goals through a \u2018pro and con\u2019 lens and see if adding property management fits. The following are five of the top reasons real estate professionals give for choosing their career:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Be your own boss<\/b><span style=\"font-weight: 400;\">. Yes! You chose real estate because you\u2019re working for <\/span><i><span style=\"font-weight: 400;\">your<\/span><\/i><span style=\"font-weight: 400;\"> end goals, not to boost someone else\u2019s early retirement. The pros and cons for this depend; if you\u2019re the landlord AND property manager, all of the proceeds end up in your pocket. If you manage someone else\u2019s property, you have just acquired a boss, but you may also <\/span><i><span style=\"font-weight: 400;\">be the boss<\/span><\/i><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> of a new property management team.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Flexible schedule<\/b><span style=\"font-weight: 400;\">. The biggest con here is that renters definitely don\u2019t plan their emergencies during your work hours, whichever hours you choose. Depending on how \u2018hands on\u2019 you are, you may be tackling a plumbing issue at 10 pm on Saturday night and then showing vacant units all day Sunday. However, the pro here, is that as a real estate professional, <\/span><i><span style=\"font-weight: 400;\">you already do this<\/span><\/i><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">! Your flexible schedule means that you and a client spend all Sunday looking at properties, and all Monday evening (after your client gets off work) writing up the offer. The additional pro is that parts of property management, such as maintenance, can be delegated, unlike writing a contract with your client.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Earn a large income.<\/b><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Real estate sales is still a profession that does not require an expensive degree with years of student loan repayment. Diligence pays off and can pay off well. The con here is that anything that cuts into the time required to maintain your current income, may require you to adjust income expectations, at least initially. The pro is that you can make sure property management pencils out ahead of time and the predictability of the income may be attractive.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Variety in the work.<\/b><span style=\"font-weight: 400;\"> One morning you\u2019re calling prospects gathered from an open house, later you head out to a client\u2019s home inspection, and to end the day you\u2019re taking buyers to see \u2018properties with pools.\u2019 The cons may just lie in the type of work but if you can generate leads and schedule inspections, you can process tenant applications and manage vendors. Your skills in performing CMAs will prove beneficial when the rental owner asks you to assess the current rental market ahead of a rent increase. The pro? Again, <\/span><i><span style=\"font-weight: 400;\">you\u2019re already doing it<\/span><\/i><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Desire to help people.<\/b><span style=\"font-weight: 400;\"> If this was one of your top reasons for going into real estate, opening a property management business could be an even more satisfying way to achieve this goal. For the right person, this is all pro, no con.<\/span><\/li>\n<\/ul>\n<h2>Personal Skills for Property Management<\/h2>\n<p><span style=\"font-weight: 400;\">Now, how do you measure up personally? Let\u2019s look at the top personal skills required in property management:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Communication skills.<\/b><span style=\"font-weight: 400;\"> You\u2019ll need to raise rents, manage complaints, and evict tenants all with a positive but firm attitude. You\u2019ll need to explain all of it to your property management team. And last (but not least) you\u2019ll need to communicate well with the owner of the property. But building relationships is <\/span><i><span style=\"font-weight: 400;\">what real estate brokers do<\/span><\/i><span style=\"font-weight: 400;\"> &#8211; ask anyone from <\/span><a href=\"https:\/\/www.buffiniandcompany.com\/\"><span style=\"font-weight: 400;\">Brian Buffini<\/span><\/a><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> to the one-person real estate shop on the corner.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Problem solving.<\/b><span style=\"font-weight: 400;\"> Again, this is another crossover skill. You\u2019ve kept $400,000 deals from falling out of escrow over roof repairs, you can <\/span><i><span style=\"font-weight: 400;\">seriously<\/span><\/i><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> handle leaking roofs!<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Time management.<\/b><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Most jobs require some level of time management, but adding property management to a real estate business is a good way to test your system: a pre-approved sales client wants to spend the afternoon looking at houses with acreage but a fill-in-the blank emergency calls you away to the four-plex you manage.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b><b>Record keeping<span style=\"font-weight: 400;\">. Incorporate the property management records into the organized system you already use for real estate, or adopt the owner\u2019s preferred system. Either way, another tool in the shed that you already own.<\/span><\/b><\/b>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Adaptable.<\/b><span style=\"font-weight: 400;\"> You handled the surprise deer head in the closet while showing a house to your vegetarian client, what will you do when tenants call the police on each other in the middle of the night?<\/span><\/li>\n<\/ul>\n<h2>Is the timing right?<\/h2>\n<p><span style=\"font-weight: 400;\">Lastly, there are several life-timing situations that may lend themselves to naturally adding property management to your real estate business.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>New agents<\/b><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">. New agents are often enthusiasm rich and cash poor. Taking on property management may be a good way to combine that enthusiasm with regular cash flow. As real estate agents know, sales fluctuate seasonally. The rental market is relatively stable and may be able to carry a new agent during down times and seasons.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Prospective investor agents<\/b><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">. Nothing beats hands-on experience! Negotiate with someone else\u2019s tenants over a few \u2018iguanas as therapeutic pets\u2019 before actually buying a townhouse to rent to see if you have the right temperament.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\"><b>Retiring agents<\/b><span style=\"font-weight: 400;\">. Agents staring down retirement but who would still like the peace of mind of a steady income stream may find property management an ideal \u2018second-career\u2019 professional move.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As you can see, many of the skills and traits that you already possess as a real estate professional are the same skills and traits you can tap into as a property manager. Obviously there are some differences, working overtime to keep a deal together in real estate sales rewards you with an immediate payout of a five-figure check. Working on Thanksgiving night to extract a fork from the garbage disposal of tenants is just another (holi)day at the office with a longer term payout of less rental turnover and more stability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any one of these issues could be a deal breaker, but as you\u2019ve learned in real estate about overcoming objections, just because <\/span><i><span style=\"font-weight: 400;\">now<\/span><\/i><span style=\"font-weight: 400;\"> may not be the right time, it certainly doesn\u2019t mean <\/span><i><span style=\"font-weight: 400;\">never<\/span><\/i><span style=\"font-weight: 400;\"> is a right time. Set yourself a reminder to revisit the question in six months or a year when the \u2018no\u2019 answers may have turned to \u2018yes.\u2019<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, the question remains \u2013 you\u2019ve looked at the evidence and compared the pros and cons \u2013 \u00a0<\/span><i><span style=\"font-weight: 400;\">is<\/span><\/i><span style=\"font-weight: 400;\"> now the right time to add property management to your real estate business?<\/span><\/p>\n<hr \/>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-thumbnail wp-image-8509 alignleft\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/12\/Karla_2017-12-07-150x150.jpg\" alt=\"Karla Allen\" width=\"150\" height=\"150\" \/><em><strong>About the Author<\/strong><\/em><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Karla Allen is a researcher and writer for real estate with<\/span> <a href=\"https:\/\/www.ayporealestate.com\/\"><span style=\"font-weight: 400;\">ayporealestate.com<\/span><\/a><span style=\"font-weight: 400;\">, an online education provider which provides prelicense training and continuing education in all fifty states.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Related Reading For You:<\/h3>\n<ul>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/xyz-renters-generations-pay-rent\/\">The XYZ on Your Renters: The Generations that Pay You Rent<\/a><\/li>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/finding-and-keeping-an-investor-friendly-real-estate-agent\/\">Finding and Keeping an Investor Friendly Real-Estate Agent<\/a><\/li>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/crazy\/\">20 Times My Renters Drove Me Crazy<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>At some point in every real estate broker\u2019s career \u2013 and probably more than once \u2013 they will be asked, \u201chave you ever considered going into property management?\u201d. If your initial reaction to this question as a real estate professional is \u201cNo way, no how!\u201d then let\u2019s take a realistic look at how property management [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":8511,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[275],"tags":[],"class_list":["post-8508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO 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