Many agents across the country are experiencing strong and stable sales. For others, the market is more uncertain. And if the recent economic situation of the last couple of years has taught us anything, it’s reinforced that old adage: You shouldn’t put all of your eggs in one basket.
One solution that agents all across the country are turning to is incorporating property management into their existing business. An August 2011 story published by RISMedia reported that “because the current housing environment makes it difficult for investors to sell properties, many are choosing to rent instead.”
The report goes on to quote a survey conducted by Campbell Surveys, which estimates a 20 percent increase in the invest-to-rent market. Imagine the extra business you could gain if your message was, “Buy this house and I will manage it for you.”
It turns out that property management is helping to even out the roller coaster effect that many agents are experiencing in this market by providing a continuous and predictable source of cash flow. And the rewards can be quite high. In addition to the traditional management fees, most property managers collect an up-front marketing fee from their clients. Add to that MLS fees, lease-only fees, rent protection plan fees, eviction protection plan fees, renewal fees, re-keying fees, late fees and vendor income and you begin to see why property management is a goldmine hiding in plain sight.
In fact, all across the country, agents are filling classrooms and seminar halls to learn more about how property management can even out the uncertainties of this market. At the most recent California Association of REALTORS® conference this past September, more than 400 agents assembled the day before the actual conference began at a pre-conference event to learn about the difference that property management can make in their businesses.
But some agents still hold onto old recurring myths about property management. In fact, some agents fear they will not have the time. But property management software today is almost completely Web-based and allows you to take applications, perform background checks, collect and distribute rents and manage repairs all from your computer, tablet device or smartphone.
Another long-held myth is that agents will not know the laws. However, agents are already familiar with 99 percent of the real estate law they need to know. The other one percent can be found easily.
A final myth is that agents believe they do not understand how to manage property. This is where training, certification and a solid system come into play. Today’s marketplace contains many training and certification options, including Agent Cash Flow Secrets (www.AgentCashFlowSecrets.com), which is an incredible program that I am personally very familiar with. In addition, it is relatively easy to locate off-the-shelf property management systems that will bolt onto your existing real estate business and start making money for you right away.
Opportunity knocks for everyone. The question is, are you going to answer the door or hope the knocking simply stops?
Verl Workman is a speaker, coach and business consultant.
For more information, visit www.VerlWorkman.com.
