For all locals buying investment property and currently on a property search, here is all you need to know about what your realtor can do for you. Now, real estate is a tough business because buying property is not an easy game and not many people can invest in it.
Can realtors also manage properties?
So, when they do, they want to do it right. Here is where the realtors have to be careful. There are many opportunities in the market for agents, who want more, which brings us to realtors who manage rental property and already in a good market position.
Upside for Realtors
By managing rental property, real estate agents can make extra money. There is no different skill set required. It’s the same thing, but instead of selling houses, you convince people to rent the property. You manage the rentals and get paid commission., which is 7-15% of the rent. So, it depends on you; it could be hundreds or even thousands of dollars.
Is it legal?
Yes, as long as your broker knows. Now, you must be wondering why that is important? Well, for starters, if you start closing deals without your broker’s knowledge, then their insurance policy does not apply to your mistakes. You won’t have any security, and if you make a mistake, their policy cannot protect client either.
For example, if you lose the deposit or make some other kind of mistake, your client will not be protected by an insurance policy. So, it would be best if you had something in place to offer security to your clients.
This ensures trust and builds good faith. It’s also important for a healthy reputation among the community, so more clients come your way who are buying investment property or at least in the property search.
Why you should get into this side business?
Well, for starters you have all the contacts required for this job. It is a simple enough job, and all you need is one contact, who hires you as their property manager. This job is all about connections and getting your job done. The reason why you should get into this in the first place is that it complements your existing job. It requires the same skills and is the same thing in a nutshell. This also helps expand your contact network.
These people who are renting houses now could want to invest in a house later, and you would be the first person they call. They could even recommend you to other people based on your exceptional services.
Here is what you have to do:
This isn’t exactly unheard of. All you have to do is be in charge of small household tasks such as finding tenants for starters, take care of any repairs, manage payments, etc. You can handle more than one house, and that is how you make more money. By having more managing property gigs. There won’t be any fixed timings. This can also help you grow your portfolio.
This opportunity could actually be more beneficial then real estate. Agents, who have dipped into this side of the market believe that it is better than representing other buyers and sellers. Property management is long term and fixed income instead of one-time payment it is monthly. It can provide more revenue.
Now, it may sound promising, but it is not all that easy and will require proactive work. If you choose to keep both then focus on managing them together. Apart, from that, it’s a great side job. If you are interested, do try it out!