We are working with a new client with multiple properties. In the process of assisting them in determining what property should be rehabbed, sold, or leased, we are working closely with their sales agent. Their sales agent is working closely with us. Both sides are acknowledging our roles, and neither is trying to be more than that. The winner is the client who is receiving expertise from different licensed experts who also happen to be members of Realtor associations.
Occasionally we are asked to serve as a sales agent from the property management side. We are able to provide those services. They are basically the backbone of our licensing. But over the years, we expanded our knowledge and capabilities by investing in the property management business. A niche within the real estate business that I believe is not something you can just throw into your toolbox as a Realtor and start offering as a service. First, it requires a team from bookkeeping to maintenance to 24/7 service for tenants. It requires leasing agents and knowledge of how to find tenants and how to screen them. It requires proprietary software that goes deep into providing owners and tenants details, documents and methods to send and receive payment. The software needs to be smart enough to address specific accounting in a way that matches the owner’s tax expectations. On and on…my point is it is a uniquely specialized field. It is not like a sales agent deciding they will expand their offerings by selling condominiums, for example.
Since the housing market tanked, licensed sales agents have desperately sought other ways to use their license. In the process they are holding themselves out to the public as knowledgeable experts in new fields hoping something will stick. We have been through this for years in the foreclosure business for the banks. Something we spent 20 years developing expertise and systems, agents starting getting interested in when they needed new business. A long time ago we decided to be a niche real estate organization serving primarily the owners of real estate who do not live in the real estate. We became experts at property management and default servicing. This started in 1996.
As the foreclosure opportunity has slowed down, agents are again seeking what else they can do as there is still not enough of a housing market to provide success for the number of agents. The Realtor press is offering what they are calling “the next big thing” for agents to service. Published last week by a respected real estate publication, “Realty Times”:
Has your market weakened in the aftermath of the 2009 recession? If so, you’re not alone. Many agents are facing the need to expand their business in the coming year. What can you do to ensure your business survives even when times are lean?
Expanding the scope of your business, however, may mean more than the simple tips mentioned above. It may mean taking on new types of revenue, such a property management.
Property management can be a great way to tap into another market segment. Many would-be buyers have decided to instead rent until they’re sure the market has hit bottom or that their job is steady.
As a manager your goal is to make the landlord’s job easier. You can help find renters, work leases, and handle payments. If there are issues with maintenance or repairs you get to tap into your already extensive contact list of contractors and servicers. You want your renters to be happy, so be sure to check in from time to time to see if they need anything and be sure to address all issues quickly.
I am not knocking people from expanding their business. Just understand the naivety of many people who may now be calling themselves property managers. It is a new option for their services with little to no investment. It is something you can easily switch into and offer as a service..or so they are being told.
Or, you can stick with the people who offer the experience to know it is a lot more.
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Tags: Experience, Indianapolis Property Management, Indianapolis Property Manager, Wilmoth
