Property Managers who try to Sell Real Estate to your Clients

[Olga M.]

Hello, Agents! I have a question and maybe I am looking at it wrong... 

I like to have a vendor network so that I can provide my clients the best services.

It took me a while to find a good professional property management company. I finally found one and fell in love with the business and it's owner.

Well, I noticed that many property managers in the state I live in also act as real estate agents.

As of recent, the PMC has been trying to sell my client make-ready properties directly. I was told in the beginning that they did not try to poach clients from agents who referred business.

My client is very loyal, and while he was perked, the numbers didn't make sense to him. He told me about the them trying to sell him real estate directly, cutting me out.

I am not afraid to lose my client. He is not going anywhere. I am just a bit disappointed in the PMC, although they are good at what they do. I know it's not illegal, and I think my client should take a great deal if he finds one, but I consider it a breach of vendor trust to some extent.

Am I looking at it wrong? 

As a vendor would you not want to attract more business from me and take care of my clients properly. On a side note, I really wish I could find a solid property management company dedicated solely to PM.

Please advise and thanks!

[Jeff Copeland]

In most states, Property Management requires a real estate license. So almost all property management companies are, by default, also real estate brokerages.  

As long as there is an offer of compensation for a buyer's agent, its really no different from your client perusing the MLS, Zillow, or Loopnet. The only person who can "cut you out" as the buyer's agent is the buyer. 

My best clients often come to me with deals they found themselves (or were pitched to them by someone else) - my value is in the analysis, negotiation, and due diligence. Not in being the only source of deals my buyer is allowed to see.