Problem Solver, Self-Motivated, Passionate, Well Connected, Great Communicator, Professional, Knowledgeable.
These may sound like the soft skills you read on a resume, they are in fact the qualities that make a great real estate agent and in turn a great fit for the property management industry.
Shelter During Market Instability
Much like the financial markets, the real estate market has periods of highs and lows where some agents find themselves scrambling to make a sale. While property sales remain flat, the rental market typically holds its own. The consistent revenue income from managing properties could be a strategic way to fill the earnings gap during the downtimes.
The Sphere of Influence
Simply put, agents have existing client bases and contacts. Real estate agents are masters at networking. They are typically extroverted, exciting and engaging at social events. There probably isn’t a golf course that hasn’t hosted a real estate tournament at some point.
One of the reasons they are so good at making connections is because they have to have a lot of them. Their clients will (hopefully) be repeat customers, but the purchase cycle can be anywhere from 5-10 years or more, making it difficult to nurture that type of relationship over such a long period of time. There are only so many marketing materials you can distribute to stay top of mind. With the addition of property management services, frequency of contact increases, and so does the quality of those communications, creating some of the most rewarding (and profitable) relationships.
Get a Leg Up
The world of real estate can be a highly competitive industry where hard work and perseverance might not be enough to differentiate you from other agents. Adding property management services demonstrates another level of understanding of the market, its investors and their businesses. You will become known as a trusted expert in your field and as an advisor to your clients which will create more meaningful long-term relationships.
Grow Your Existing Real Estate Business
Once you start bringing on investors, real estate sales will organically increase as satisfied landlord clients become eager to expand their portfolios, knowing their investment will be protected. The reverse could also be true: if you aren’t responsive, aren’t proactive and aren’t passionately looking out for your investors’ best interests, that reputation could start to hurt your home sales. But we all know a good real estate agent would never do any of those things, so we don’t need to discuss that any further.
More Business Doesn’t Have to Mean More Work
We’ve all heard the saying ‘work smart, not hard’. While we absolutely encourage a strong work ethic for greater success, property management can be scalable with the right systems and processes in place. With robust reporting and accounting software, (good) technology automates so much of the ‘tasks’ component of the business you have more time to work on your business, rather than in it.
Great! Because more properties means more money right? In terms of profitability, you can influence your per unit revenue through maintenance fees and other improvements, versus being solely focused on adding units and managing high volumes. That said, if you’ve got a consistently performing portfolio, happy investors, and the resources, go for it! What started as your side hustle, might become your exclusive priority.
Interested in learning more about the property management industry and joining Canada's only franchise in this space? Fill in our quick contact form and our franchise success team will each out to you.