If you are considering using your Realtor as a property manager for your rental home, you need to make sure that they are qualified. The question isn’t really whether or not they should manage your property; it’s whether they have the knowledge and experience to manage your property.
The main part of a real estate agent’s job is to help people buy and sell homes. Before you turn over the management duties to them, find out if they know all the laws and regulations involved in managing property. California has the strongest tenant laws in the country, and they have to be followed. You also need to know if your Realtor has the required insurance to manage property. They probably have their own professional liability insurance, but an Errors and Omissions (E&O) policy is necessary for property managers. Find out if your Realtor has a trust account to hold and disperse your funds. That account will need to be regulated by the Bureau of Real Estate, so make sure it’s legally compliant. Finally, inquire about whether your Realtor has a full staff to assist with the day to day property management responsibilities. If your agent isn’t available, you’ll need to know someone is taking care of your property and your tenant.
Our intent is not to complain about Realtors or suggest they shouldn’t do this job. We want real estate agents to know that it better serves their clients to refer them to property management experts. When Realtors send their clients to someone who does this every day; the Realtors can concentrate on doing what they do best. When an agent refers a client and a property to us, we will never sell that property. If the owner decides to sell, we will refer the property back to the agent. This is probably the biggest reason Realtors want to hold onto the properties; they don’t want a house to be sold out from under them. That doesn’t happen with Real Estate Connections.
So if you’re going to use your Realtor as your property manager, make sure they are experienced and qualified. It’s crucial to have the right insurance and know-how. Property management is not just about finding a qualified tenant. There’s a lot more to it, and a real estate agent has to be prepared and have all the necessary skills in place.
If you have any questions about how we can work with your Realtor, please contact us at Real Estate Connections, and we’d be happy to tell you more.