Realtors to Property Managers: What Do You Need to Know About the Transition?

Hello Let's Talk PM,

I'm doing research into real estate agents and brokers who are becoming property managers. I'd love to have feedback from those of you who have been through that transition.

Specifically, I'd like to know:

What similarities do the two jobs have? What is different about them?
What events have caused realtors in your area to make the switch to property management?
What are the 2,3 or 5 things that a realtor absolutely has to know before becoming a property manager?
Is the transition particularly difficult?
What personal qualities work for realtors but not for property managers?
Is there a culture clash of any kind, moving from real estate to property management?
Was the transition worth it?

If you want, just cut and paste the questions you want to answer in your replies and answer away. Feel free to just comment on the general topic as well.

Thank you everyone!

Chris Thorman
Software Advice
chris@softwareadvice.com
(512) 364-0118

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Permalink Reply by Eric Burgin on March 8, 2010 at 3:13pm

Chris:

I am a licenced real estate agent as well as the owner of a property management company. I thought I would share my views.

What similarities do the two jobs have? What is different about them?

Real estate has buyer and seller, property managment has tenants and landlords. With sellers, you need to get the listing agreement signed, with landlords it is the management contract. Sellers make offer to purchase, tenants make offers to rent. In a sale the vendor decide what offer to accept, whereas in PM (property management) the manager decides which tenant to accept.

While the sale of a home is transaction based with elements of service, PM is service based with the transaction of signing a lease being a small componant.

What events have caused realtors in your area to make the switch to property management?

I can't answer this one, but I can say that the two compliment each other as tenants will become buyers, and landlords will become sellers.

What are the 2,3 or 5 things that a realtor absolutely has to know before becoming a property manager?

Become familiar with the rules that govern landlords and tenants in your area. Know what recourse a landlord has when a tenant: is late with the rent, is disturbing other tenants, has damaged the property.

Learn the market you are in. What are the average rental rate for various types of properties in various areas of your city.

Identify service providers that you will need and keep their number handy. (plumbers, electrician, handy man, lock smith, insuance broker, etc.)

Is the transition particularly difficult?

No, like I said they go hand in hand. The renumeration is much less, but more frequent.

What personal qualities work for realtors but not for property managers?

Being the guy that tries to please eveyone. You need to lay down the law at times and you can't be everyones friend. At the end of the day you are running a business and you need to make money.

Is there a culture clash of any kind, moving from real estate to property management?
Was the transition worth it?

Again, I can't say in regards to making a transition, but I do enjoy both as they can be very similar.

Eric Burgin
ericburgin.com
613-858-8583

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Permalink Reply by Chris Thorman on March 8, 2010 at 3:18pm

Erin,

Thank you so much for your feedback. This is great information.

I'll let you know how the article turns out.

Anyone else have any insights into this topic?

Chris

Realtors to Property Managers: What Do You Need to Know About the Transition?

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