Realtor Property Management - Another Source of Income

If your commissions from sales have been running a little low, consider venturing into realtor property management to rake in a little more cash. A career in realtor property management can be very lucrative if you have the right skill sets and managerial acumen. A realtor property management firm usually charges clients 5-10% of the property’s rent when they take charge of its management. So if an apartment is being rented for $1,500 a month, this means an extra $75-150 for you every month. If you manage several properties at once, this could grow to a sizable sum that will definitely make a difference in your monthly income.

Duties of a Realtor Property Management Firm

Essentially, a property manager handles three important duties. First are the financial duties. You’ll be in charge of collecting the rent checks from the tenants and sending late fee notices if you fail to receive the rent checks. Sometimes, property managers also do credit checks before a tenant occupies a unit. A realtor property management firm may also handle maintenance duties. You don’t have to have a maintenance crew on staff but it’s your responsibility to call a plumber to unclog a toilet or an electrician to check the wiring. For major repairs, you will need to consult a maintenance company. Finally, a property manager also takes care of open houses and property showings. This includes putting up ads for apartments that are vacant and showing these properties to interested potential tenants. You may also be in charge of opening a building for construction workers and others who need access to it.

Take note that the property manager does not necessarily have to handle all these roles. The roles you’ll be taking on depends on the needs of your client, the landlord, and the kind of properties you’ll be handling.

The Middleman Factor

One of the things many realtors fail to take into account when they consider a career as a property manager is that they will be middlemen for the landlord and tenant. Sometimes, getting caught in the middle can be stressful and full of pressure, but you can reduce these instances by drawing clear boundaries for both parties.

Before anything else, you need to be clear about what your client expects out of you. Should you play an active role in handling tenant problems and issues that may arise out of the property? Or are you there to simply collect rent and report any problems so the client himself can handle them? Either way, make sure these terms are clear and placed into writing. You should also discuss the protocol involved in handling common situations.

You won’t need a written contract with the tenants, but you will have to be clear about your role and your duties. It may help to write a letter of introduction together with the landlord that outlines your responsibilities. Take note that the tenant may try to put you in the middle when it comes to certain disputes, but make sure you are clear about which issues you can handle yourself and which issues should be handled by the landlord.