The Difference Between Real Estate Management and Property Management
If you are plugged into the real estate world, odds are you have heard the terms real estate management and property management. While the two terms might get used interchangeably, they are different things and require different skill sets. So today, the team at The Labrada Group is here to talk about everything you need to know about the differences between property management and real estate management.
What Does a Property Manager Do?
Property managers take care of properties when the landlord is either not present or unable to care for multiple rental properties. Rental property owners pay a small percentage of monthly revenue to hire property management for dealing with the day-to-day operations. Property managers work for residential, commercial, and industrial properties.
Tasks a property manager performs include:
- Coordinating maintenance and repairs
- Record keeping
- Supervising employees
- Creating contracts
- Mediating between landlords and tenants
- Collecting rent
- Scheduling property inspections
- Screening tenants
Property managers can be employees of a property management company or self-employed. It is a good career choice for someone who is social-minded and enjoys interacting with people.
What Does a Real Estate Agent Do?
A real estate agent, in contrast, deals with buying and selling properties. If you have ever sold your house or investment property, odds are you worked with a real estate agent. Real estate agents know about local markets and can help prepare and list your property for sale. Real estate agents can also handle the paperwork for selling or buying properties. Among other things, a real estate manager will:
- Mediate between buyers and sellers
- List properties
- Research market trends
- Conduct open houses
- Take photos of the property for listings
- Manage paperwork for buying and selling
Real estate agents are often self-employed, and many have previous experience as property managers, so they have an in-depth knowledge of how the rental process works.
Property Management VS Real Estate Management
Below is a list of the main differences between the two professions.
Property managers typically have higher education requirements than real estate managers. Most states require licensing for property managers and employers prefer some college education. There are no education requirements for being a real estate agent, but you must study and test for a real estate license.
Both real estate agents and property managers require licenses. In property management, a professional property manager working under supervision at a larger company may not require a license. Real estate agents require a license before they can buy and sell homes. Licensing requirements differ depending on the state, and most states punish unlicensed practice as a felony offense.
Property managers and real estate agents make similar salaries, but real estate agents have a higher earning potential because they take some commission from property sales. Property managers usually take a fixed percentage of revenue or a flat rate. Typical percentages hover between 8% and 12%.
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Contact us at The Labrada Group online or call us today at 909-981-3500 to discuss property or real estate management!