Property managers and real estate agents both operate in the real estate market. But what each one does is slightly different from what the other does. Real estate agents focus on helping their clients buy and sell houses. Property managers, on the other hand, oversee the operation of a rental property on behalf of the owner.
Estate agents and property managers deal with clients at various stages of their homeownership journey. The estate agent helps the client find a buyer if they are looking to sell or find the right property if they are looking to buy. The estate agent only needs those tools and skills that help him or her identify the right property or buyer on behalf of their client.
Unlike property managers, real estate agents don’t deal with the intricacies of operating a rental property. They are only there at the beginning or end of their client’s ownership of the property; that is when the client is about to buy or sell the building. What happens in between these two periods is not the real estate agent’s job but the role of the property manager.
While real estate agents help clients find properties with high-income potential, it is property managers who actualize the potential of that property. Property managers are experts at managing the diverse functions that go into making an investment property successful. It is the property manager’s input that transforms the investor’s idea into a profitable business.
Property managers and estate agents are valuable to property investors in their own unique ways. But although each professional’s roles are different, they are not contradictory. As a matter of fact, what real estate agents do and what property managers do are connected; there are considerable overlaps in their respective functions.
Estate agents buy houses for clients who will often need property managers to manage those houses. Property managers have owners who will eventually want to sell their houses or tenants who may want to buy houses down the road. This is why property managers and estate agents benefit when they work together.
How can a real estate agent and property management firm work together for mutual benefit?
They do this by setting up a referral system that lets them send leads to each other. The agent recommends the property manager to clients who have just bought an income property. The property manager, in turn, sends property owners who want to sell their properties to the estate agent. The benefits of such an arrangement to both parties are manifold.
Provide additional value to clients
Customers value the effort when businesses go over and beyond the terms of their contract with the customer. Businesses that overperform demonstrate that they are not all about the money, but they actually care about the customer as a human being. This is what creates the basis for a long-lasting and meaningful business relationship.
Real estate agents that go as far as to help their clients find reputable property managers for their investment properties, go beyond the call of duty. Property managers who make it their business to link owners with estate agents who can help them grow their portfolio also do the same.
Become a one-stop-shop for clients’ needs
Customers like it when they can get everything they need from one source. An agent or property manager who looks at customers’ needs from the viewpoint of the problems the customers are trying to solve will get more business.
Once a real estate agent realizes that the client is not merely trying to buy a house but to build a business, linking them up with a property manager just makes sense. Similarly, property managers who understand the long-term needs of owners see the sense in being able to connect those owners to competent agents. In both cases, the agent and property manager become a one-stop shop for all of the clients’ investment property needs.
Give clients the advantage of your network
Once customers find an estate agent or property manager they like, they will tend to ask them for real estate manager referrals. Clients do this because they know how hard it is to find trustworthy companies or individuals and are hoping to benefit from the estate agent’s or property manager’s experience.
When you build a proper referral system into your business, you not only make it easier to give clients the best advice, but you will also benefit from doing this.
Create additional sources of income
As an estate agent, you can earn money from a property manager when one of the clients you send to them signs a property management agreement. The same applies when, as a property manager, you refer one of your owners to an estate agent and that person ends up buying or selling their house through that estate agent.
By working in tandem with one another, instead of operating solo, estate agents and property managers can help each other’s businesses become more profitable.
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