Why Most Realtors Don’t Make Good Property Managers

[Engelo Rumora]

G’Day everyone,

In today’s newsletter, I’m diving into a topic that might stir some debate: the challenges many realtors face when they step into the world of property management.

1. The Reluctant Property Manager

Often, realtors find themselves “forced” into property management. This shift typically happens due to client demands rather than a genuine interest in property management. While the lure of recurring income is tempting, many realtors underestimate the complexity of the role. It's only a matter of time before they become overwhelmed, leading to a situation where they "give up" and focus solely on sales. Consequently, property management gets done haphazardly, just to keep existing clients satisfied.

Do you agree? Have you experienced this shift yourself? If not, what has your experience been?

2. Lack of Resources and Focus

Realtors often lack the time, resources, or will to manage properties as effectively as a brokerage dedicated solely to property management. Here’s a quick tip: Compare the listing description of a rental property from a “Realtor Brokerage” to one from a Property Management Brokerage. The differences are striking, often highlighting the latter's thoroughness and attention to detail.

Have you noticed the difference?

3. Prioritizing Property Management

For successful property management, the focus needs to be 100% on tenant and landlord relations. In property management, issues tend to "funnel upwards," making it crucial to delight tenants with an excellent customer experience. Happy tenants mean timely rent payments, which ensures the property management team collects its fees, and landlords receive their income—a win/win/win scenario.

Realtors, on the other hand, often prioritize sales, with property management taking a backseat. In contrast, property management-focused brokerages dedicate themselves entirely to property management, sometimes offering sales assistance as an affiliate service.

Quick Tip: Look at other Toledo brokerage websites. Can you tell if they are sales-focused or solely property management-focused?

Oz Realty for example is solely property management-focused.

Let's Hear From You!

What do you think? Do you agree that property management should be a dedicated focus, or do you believe realtors can effectively manage both sales and property management? If you disagree, why?

Share your thoughts, experiences, and any tips you have for balancing these two aspects of real estate.

I look forward to hearing your insights and continuing this important conversation.

Regards,

Engelo Rumora