Property management and real estate are actually two separate industries which are often confused and lumped together by some outsiders. While there are some areas of overlap and both deal with housing, the similarities are minute.
What is a Real Estate Agent?
A real estate agent is a person whose business involves arranging the buying, selling or leasing of property for their owners. This involves promoting properties through listing services, advertisements, open houses, online portals and other digital marketing methods as well as acting as an intermediary in negotiation between buyers and sellers and landlords and tenants.
Their job also involves providing advice on market conditions, prices, mortgages, relevant laws and appraising property values. Agents are primarily responsible for ensuring the transfer of property goes smoothly with everyone’s legal rights safeguarded and everyone involved feeling satisfied.
What is a Property Manager?
Unlike real estate agents, a property manager isn’t responsible for buying or selling property. They are instead responsible for leasing and maintaining a property and ensuring tenants are satisfied with the condition of the dwelling they are living in.
Property managers work for the property owner in most cases but are also focused on looking after the needs of the tenants. By keeping on top of regular maintenance and repairs, they are helping both. A well maintained house is crucial for attracting and retaining happy, considerate tenants as well as protecting the property’s resale value.
Property managers are also responsible for finding new tenants and providing advice about the rent levels and how the property can be improved to attract the best tenants possible. The property management industry is often lumped in with real estate because they require similar knowledge such as how the property market is performing and what makes a property desirable.
The main difference between the two industries is that real estate sales is a transactional business whereas property management is a contractual business. A property manager and property owner generally enter into a contract where a percentage of rent collected is paid to the property manager in exchange for their services.
Some real estate agencies offer property management as a secondary service but many owners prefer to work with companies that specialise in a dedicated property management service. One of the reasons for this is that the property management industry is task driven requiring more administration and a variety of experience while the real estate sales market tends to be sales orientated and driven in less administrative environment.
Property owners who use real estate agencies for property management can experience worse or inconsistent quality of service during bumps and slumps in the real estate market. Many would rather use the consistent, dedicated services of a property management firm whose attention and resources won’t be as influenced by the real estate market.
Specialist Property Management in Perth
If you require the services of an experienced property manager for your investment property in Perth, get in touch with the team at Gow Property. Whether you own one home, multiple properties or a building complex, our dedicated staff will ensure your properties are well maintained and stress free for you.
Call us today on 08 6389 7777 or contact us online to see how we can help.