Property Management Via Realtors Vs. Private Property Management: Key Differences
Posted on: 11 June 2018
Most property management companies in the U.S. are actually services provided by a real estate agent or realtor. However, there are also private providers of property management. There are key differences between these two services, which may help you decide who to hire in regards to your managing your own property.
Private Property Managers Work for Themselves
These professionals are individuals who are a sort of "jack-of-all-trades." They have experience fixing and maintaining plumbing and electrical systems, and they know how to keep your landscape looking lovely. They clean and scrub homes inside and out to keep the homes presentable. If you need new paint in a room, they do that, too.
They may work under certain titles, such as "handyman" or "honey-doers." Once in a while, these private property managers are actually licensed realtors, but that is unusual. If you hire this type of property manager, you pay him/her directly for their services, instead of paying a company or real estate firm, who then pays the people taking care of your property.
The Duties of Realtors and Real Estate Agents Are Different
A private property manager may do all of the above, but the duties of a real estate agent or realtor are a little different. You give them permission to complete as much maintenance work as they are able to complete themselves, and then they hire professional contractors for the rest. For example, a realtor/real estate agent may mow the lawn on the property, but a problem with your electricity on the property is addressed by calling an electrician to fix the problem. You pay extra for the services of the contractors.
Real Estate Property Management Costs a Little More
Real estate property management costs a little more than private property management. However, the real estate company/agent/realtor is licensed and bonded against accidents. That means that if the real estate agents or realtors who are caring for your property are injured in the process of caring for your property, they cannot and will not sue you.
They take their injury claims to their company/agency and to their insurance company instead. That extra money you spend hiring them pays for the reassurance that you will not be sued in the event of an accident or injury. Additionally, if you are not intending to rent the property, and you only want someone to maintain it, the fees charged by the real estate agent or realtor are actually quite affordable.
Neither Type of Property Manager Is Security
Neither type of property manager acts as security for your property. However, the real estate agents or realtors can provide special real estate locks on the doors of your building to prevent entrance of intruders or squatters. That is the limit of their ability to secure your property. The private property managers who work for themselves and are not licensed for this kind of work cannot provide any security at all. You would be expected to provide your own full security system to protect what is yours.
Hiring Security Guards Is a Completely Separate Thing
While realtors and real estate agencies can recommend security companies to you, they do not do any hiring of security guards for your property. They do not install security systems, but they can recommend the best security companies for the job. If you want security guards on your property at night and sometimes during the day, you will have to hire them on your own. Be sure to thoroughly interview everyone you hire to maintain and protect your property, as you will not be around to monitor what is happening on a day to day basis.Share