Did you know that 53% of home buyers find it hard to get the right property? Luckily, real estate development simplifies the hassle.
Acquiring the services of real estate agents and property managers is essential. This is if you are aiming for a successful property investment experience. These professionals ensure that you make the right decisions in the industry.
Before investing in real estate, it’s important to understand what is real estate development and property management.
Below we help you understand the fields and further discuss the differences between the two entities.
What Is Real Estate Development?
This field deals with buying, leasing, and selling property on behalf of the real estate investor. A real estate agent handles making price estimates and marketing the property. This is through listing and advertising the property.
The agents act as a link among sellers, buyers, landlords, and tenants. They ensure smooth property transfer and the safeguarding of all legal rights. Additionally, they are responsible for finalizing the terms of sale.
What Is Property Management?
Property management deals with the repair and maintenance of buildings on behalf of the property owners.
Property managers screen tenants, draw leases, and handle tenant issues and complaints. They also ensure that the property is under the state’s laws and the payment of taxes.
Most property owners prefer working with property management companies. This is because the field requires experience in administrative duties.
Work Period
In real estate, the business is transactional. The time it takes to source and settles the property determines the work period. But, some agents offer property management services at an extra cost.
To become a recognized real estate developer, it is important to create a real estate brand. It places you ahead of your fellow competitors in the field.
Contrary to that, a property manager signs a contract with the property owner. The relationship between them becomes stronger and long-lasting.
Educational Requirements
Property managers should have an educational background in relevant fields. These include public administration, accounting, and finance. In some states, managers must have a valid license.
On the other hand, it’s not mandatory for real estate agents to have an educational background. The agents require strong sales and customer service skills.
Terms of Payment
In real estate development, agents get paid on a commission basis. The agents usually get up to 6% of the total sale of the property.
In property management, an agreed percentage of the rent pays the managers in exchange for their services. The payment process guarantees that your property is well maintained.
Real Estate Development vs Property Management
Are you interested in real estate? Real estate development and property management are two necessary fields you should know. This is because they help you maximize the profits of your investment property.
The duties and responsibilities of the agents and property managers often overlap. The guide above will help you understand real estate development and property management.
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