For people who don't deal in Real Estate on a regular basis they don't always have a clear understanding of what those choosing a Real Estate career actually do. In particular, many people are confused about whether being a Real Estate agent is the same job as being a Property Manager.
While both Real Estate Agents and Property Managers hold their respective licenses, both deal with properties, and they may have a few things in common. The two careers are really vastly different. Here is a look at some of the major differences.
Who Their Clients Are
The first major difference between a Real Estate Agent and a Property Manager is who their clients are. A Real Estate Agent works with a broad range of customers who are looking to buy, sell, or lease property. This includes residential and commercial properties and are not limited to cities or majorly populated areas. Real Estate agents, realtors as the they are known in Miami Florida can also sell livestock and businesses for compensation.
In the simplest relationship Realtors and their customers embark on the search for a tenant to meet the owners (landlords) criteria, but when the tenant is placed into the property the Realtor's job is done. They may also help tenants with the leasing/ renting of a property. The assistance they give potential renters goes beyond giving them a list of various properties to rent and they actually help them through the process. By showing and negotiating the lease rental terms with them. But once again, when the tenant is placed into a unit the Realtor’s job is done.
On the other hand, a Property Manager also deals in property rentals, and also places renters into rental properties. However, they are working for the property owners who rent out property for financial gain. A Property Manager's job encompasses many services from the property owner including screening tenants, collecting rent, maintaining the property, and seeing that repairs to the property are made. Property Managers never deal with the buying or selling of properties.
How They Earn Their Money
Property Managers normally charge a monthly fee based on the services they provide to each property owner (landlord) they represent. Most Property Managers make premium wages because they provide a number of services so that the actual property owners can sit back and collect the rent check.
Real Estate Agents however, normally get a commission on the properties they sell or rent at the end of the successful transaction. If they sell a lot of properties, they can make a good amount of money, the less properties they sell the less income they make. While Property Managers normally make a good consistent wage on a regular basis, Real Estate Agents often find that they are either in a feast or famine situation since the rental market and sales market shifts from time to time.
When to Select a Property Manager or Real Estate Agent
If you live in Miami and are looking to buy or sell your property then you want the assistance of a Real Estate Agent. A good Real Estate Agent will know the neighborhood in which your property is located or in which you are looking to buy property. They will know the average value of the properties in each neighborhood and more often than not can give you information regarding schools, local parks, and local businesses. Given a price range they will do their best to show you those properties that fall within the price range.
A Real Estate Agent can save you time and effort when you are buying or selling your property making the entire process less stressful then trying to buy or sell property on your own. We also all know that a Realtor will always get you more money for your property then you would on your own.
Now when you want to have a more hands-off approach to your investment. Once you obtain a property with the help of a Real Estate Agent you can hire a Property Manager. But you must ask yourself these important questions.
Is it worth paying a Property Manager 10-30% of the monthly rent for their help?
How will the additional cost of hiring a Property Manager affect my overall investment and rate of return?
Can I have my Realtor work with me on a limited basis without crossing the line of their license?
Can I manage and monitor my rent deposit and escrow accounts on my own?
Are the local laws that complicated in Florida that I cannot manage the tenant myself?
If after considering the above questions you feel that you can handle the Property Management on your own. Then it behooves you to take on the task yourself. In the meantime, saving yourself thousands over the course of a year.
For help in purchasing your investment property or condo call Eddie La Rosa 305-968-8397. Ask him about how he helps his clients work without a property manager post-closing and pocket all the savings themselves.