How many agents also have property maintenance companies?

Question

Hello all!

I am a Licensed Real Estate Salesperson in the Hudson Valley area of NY and have been looking for alternative ways to make money. As we all know, building up your RE business takes time. We also know that having several income streams is helpful in making the big money. I have heard that there are a lot of realtors out there that do both, real estate sales and run a property maintenance company. This interests me greatly, but as the saying goes, why reinvent the wheel when you can find a business model you like and make it your own.

Does anyone have any insight into this? Any pointers? Any examples? I have an idea of what I'd like to do, but I'm not sure if it can be done.

Jim K. · Answer

It was HL Mencken who observed that in our society, high-status occupations tends to end in -or and low-status occupations end in -er, as in, doctor, professor, actor versus plumber, driver, cleaner. Mencken observed the creation of the word "realtor" in 1916 as the brainchild of a national association of real estate agents trying to distance itself from the seedy image of con men and hucksters usually associated with salesmen and go-betweens. He glumly theorized that one day, the guy who buries bodies would insist on being referred to as an "undertakor."

Nathan Gesner · Answer

Todd, I don't know any REALTORS (sales agents) that run maintenance companies, but I know a lot of Property Managers (most of them are also REALTORS) that do this. I'm in negotiations right now to purchase an existing plumbing business, then I will add handymen, cleaners, and eventually an electrician.I listened to a presentation from a Property Manager in Chicago that had 20 maintenance technicians, a 6,000 ft. warehouse with a full-time manager, and I think three maintenance coordinators. He made more money from maintenance than he did from his Property Management.

Peter Tverdov · Answer

We manage about 200 doors. Ironically, I basically built that business first and then opened the brokerage to start selling houses. Selling houses is soooo much easier than PM and better money too.

Ceasar Rosas · Answer

@Todd SullivanHey Todd, I think it's a great idea. I am a Realtor, flipper, and I have worked in the facilities world for quite some time. I decided to open up a handyman/repair and renovation business. I am rolling it out this year. I think you have to identify your audience and come up with a marketing strategy. Most importantly, you must be reliable. It is still a business you have to nurture. My reason for doing it is, 1. I have a passion for construction and managing repairs and projects 2. There is a lack of good, reliable contractors out there. 3. While I still work seller listings when I get them, I never had a true passion for working with buyers. My goal is to build a team of repair guys that can handle renovations, repairs, and our flips and investments. You're not to far, I'm always open to brainstorming. Good luck!

Todd Sullivan · Answer

Thanks for the replies and insight everyone! I really appreciate it. Maybe not being a property manager, but supplying the maintenance portion is best. Keep being a realtor to buying/selling? Has anyone seen just a Property Maintenance company out there that's hired by PM's?

Craig Garrow · Answer

@Todd Sullivan I started doing Property Management shortly after I got licensed so I could start making some money. It was a good business overall, and I recently just brought in a partner (my biggest client) to take on more of the day to day responsibilities since I have been much busier with sales the last few years.

Bruce Lynn · Answer

Very few is my guess. Before you get too far, you probably want to check with your broker to see if they will allow it. Many don't due to the liability involved. It's probably the top section of real estate that generates the most lawsuits, so many brokers just don't want the headache for the low returns.Think about what your revenue and expenses will be vs time and effort. In my part of the world the good PMs charge 10% a month, so how many do you need to have to generate significant extra income....20-30-50, then when you get that many how much time do you spend accounting, phone calls, dispatching maintenance, etc. The bad ones probably charge less, maybe as low as $75/door. How often do you visit the properties....our good PMs take pictures 1x month outside and 1x quarter on the inside. Who will handle the evictions, the troubled tenants that call at 2am with no heat, stopped toilets etc.Add on that probably no one likes their PM. Investors like to complain the PM is making all the money and robbing them blind, just collecting a monthly fee for no work....and never like what you charge them for repairs. What would you charge to diagnose dead batteries in a thermostat.....$75 trip charge?...then the owner thinks $75 is outrageous for you to do a simple task like change batteries or for your maintenance person to do it. Tough to win that battle.Just my thoughts.....hopefully you prove me wrong and make all kinds of cash on the PM business and are able to create automation and outsourcing to handle all the work at minimal expense with lots of profit.