Can you be a property manager and a real estate agent? This is a relevant question for today’s homeowners. As a result, we’ve written this article to assist you. Real estate and property management are two distinct sectors with considerable overlap. Unfortunately, to the untrained eye, they are mixed and mislabeled.
Because of the housing market’s unpredictability, this mix-up frequently leads to prospective property managers preceding a career in that field. According to studies, you may work as a property manager and a real estate agent. Come along as we highlight some possibilities in this niche!
Can you be a Property Manager and a Real Estate Agent?
Yes. If a real estate agent has a real estate broker’s license in certain areas, they may also work as property managers. In certain states, however, no credentials are required. You must also obtain a property manager’s license or other specific certificates in a few states before you may lawfully manage properties.
Furthermore, the answer to this issue is contingent on whether the real estate agent is self-employed or employed by a broker. It also relies on the location of the property to be handled. So let’s make things as straightforward as possible.
Rules for Individuals – Real Estate Agents
Let’s start with the rules that apply when a real estate agent functions independently and not as a real estate brokerage or property management firm worker. To be clear, we’re referring to someone who possesses a real estate agent license, not a real estate broker’s license.
There are no license criteria in Idaho, Maine, Maryland, Massachusetts, or Vermont. Therefore a real estate agent may also be a property manager.
If the property is 100 percent residential, a real estate agent may be a property manager in Kansas. They must have a real estate brokerage license if the property is commercial or mixed-use. If the agent owns 5% or more of the property, they are exempt from this rule. In this situation, the property manager may be a real estate agent.
Anyone may apply for a property management license in South Dakota, South Carolina, Montana, and Washington, DC. So, with a few limitations, a real estate agent may work as a property manager if they obtain a property management license.
In most situations, a property manager in Oregon must have either a real estate brokerage license or a property management license. So, certainly, a real estate agent may be a property manager if they have the latter.
To work as a property manager in any other state, you’ll need a real estate broker’s license. So, a real estate agent who also has a real estate broker’s license may work as a property manager in these places. On the other hand, the agent cannot be a property manager if they do not have a broker’s license.
Rules for Individuals – Real Estate Brokers
A licensed real estate broker may work as a property manager in any state. Licensed brokers can perform the tasks of a property manager in states that need a property manager’s license.
Rules for Individuals Working for a Company
In places where being a property manager requires a broker’s license; a real estate agent may be permitted to perform the tasks of a property manager if a managing broker supervises them.
In places where a real estate broker’s license is necessary, the same restrictions apply to property management firms. The company must name a managing broker, licensed as a real estate broker. The property manager’s responsibilities may then get delegated to other team members. However, the broker will have the final responsibility for their acts.
To comprehend how this works, you must first understand the distinctions between a real estate agent and a property manager.
Who Is A Property Manager?
A property manager is a person that operates on behalf of the owner of a property and is in charge of several activities such as locating tenants, collecting rentals, and ensuring correct repairs and upkeep are carried out. The specific responsibilities of a property manager differ depending on the owner’s requirements.
The manager may be hands-on and personally engaged in all aspects of property management, or they may supervise others who do repairs, advertise for and interview renters, handle the books, and so on.
Property managers may work for people, corporations, non-profit organizations, and governments, and they can be in charge of commercial or residential properties.
Because of the wide variety of jobs, duties, and employers available, a property manager might be in charge of anything from a single tiny privately owned house to a large portfolio of properties held by several customers.
A property manager is also handling the following:
- Rent collection and accounting.
- Property upkeep regularly.
- When necessary, perform or arrange repairs.
- Posting vacancies.
- Tenants are vetted and interviewed before a tenancy agreement is signed on behalf of the landlord.
- Executing evictions as required.
- Dealing with any additional difficulties that renters or owners may bring up and much more.
What Are the Requirements for a Property Manager?
The credentials a property manager needs are determined by the state where the managed properties are located. If a single individual administers properties in many states, they must meet the qualifications in each state where the property is located.
Property managers are not required to have any credentials in a few states, and those who manage residential properties in Kansas are not obliged to have any qualifications. You must have a real estate broker’s license or a specialized property manager’s license in other states.
Before seeking a property manager’s license, you may need a real estate license. Furthermore, there are hundreds of “micro rules” that apply to special circumstances, such as the fact that in certain jurisdictions, if you are a property manager who lives on-site, you do not need any credentials.
Who Are Real estate agents
Real estate agents are registered experts that assist consumers in purchasing or selling real estate. As a result, a real estate agent works in his client’s best interests to get the greatest bargain, and they are often rewarded entirely by a commission—a portion of the property’s purchase price. In other words, their salary is contingent on their ability to consummate a sale.
Most important responsibilities of a real estate agent
A real estate agent’s key responsibilities include:
- Assist purchasers in locating appropriate properties.
- Assist in determining the worth of a property.
- They assist sellers in identifying ways to boost the value of their houses.
- Locating potential purchasers.
- Property on the market.
- Provide advice on their client’s best interest in a buying offer.
- Act as a middleman in talks, among other things.
Unless there is a problem, the real estate agent’s role ends after completing the transaction. With a few exceptions, the real estate agent gets paid a bonus on each sale they accomplish.
The property manager and a real estate agent: Significant differences
The following table highlights the key differences between the two:
|Property manager||Real estate agent|
|Property management works with all elements of the property management on behalf of the property owner.||The real estate business deals with listing and selling properties on behalf of property owners. This involves things like upkeep, repairs, and tenant difficulties, among other things.|
|Property management is a contractual business||Real estate is transactional.|
|The property management sector remains a dynamic and growing company.||The real estate market is often up and down. Thus, when the housing market is down, many property owners will resort to property managers to rent out their houses until the market recovers.|
|The property manager and owner agree to a contract in which the property manager receives a portion of the rent collected in return for management services.||This doesn’t happen with real estate agents|
Frequently Asked Questions
Can you be a property manager and a real estate agent?
Yes. If a real estate agent has a real estate broker’s license in certain areas, they may also work as property managers. In certain states, however, no credentials are required.
Is becoming a property manager a smart option for a real estate agent?
Yes. Real estate agents should think about managing rental properties as a source of extra revenue. If completing transactions is your primary job as an agent, you may spend your free time monitoring properties. Agents who manage rental properties might make 7-15 percent of the rent.
Is there a difference between a property manager and a real estate manager?
No. Focus is the primary distinction between a real estate agent and a property manager. Property management is a supplementary service offered by real estate agents, while property managers are fully active in managing your properties and committed to increasing your investment.
Is it true that property managers are in charge of utilities?
Some property managers can switch on and off utilities for you, while others cannot. If your management firm tells you that you’ll be responsible for utilities, turn them on as soon as the property is unoccupied and turn them off the day your renter comes in.
In conclusion, real estate provides numerous earning options. And if you need more guidance in this regard, the above highlight on “can you be a property manager and a real estate agent” will aid you immensely.