First of all, there aren't many Realtors in the San Ramon, Danville and Blackhawk areas that will do property management, or at least not as many as you might think. What many consider to be a natural fit - real estate professionals that sell real estate and also manage properties - is something that is frowned upon by most of the large real estate franchises.
Employees from local Tri Valley companies such as Chevron, AT&T, Oracle, Kaiser and others often need help when it comes to managing their own real estate, or finding rentals.
As a property owner that wants to lease an investment property, then have someone deal with the tenants and collection of rents, it is often a property manager without a real estate license or "on your own" as the typical options. When looking for a rental, it is often a direct dealing with the owner of that property, with no one on your side to look over the lease agreement you must sign. Or, you are dealing with a property manager that is representing the owner of the property you want to rent.
So, what's wrong with using unlicensed property manager? Often nothing, but why are more people seeking out Realtors that can manage their properties, or help them find a rental? Here are a few reasons.
1) Property managers don't need a real estate license. Like hiring a financial adviser that does not have a degree in finance, or a license to help you buy and sell securities, an unlicensed property manager may be limited in their real estate knowledge and ability to do certain tasks that require a license.
Hiring a Realtor that does property management means you can use the same individual to buy, sell and manage your property. Furthermore, listing the home on the real estate MLS, where more potential renters can be found, can only be done by a Realtor.
If you are looking to rent, only a Realtor has access to MLS listed properties and the access key to show you those properties.
2) Standards of practice is of utmost importance when becoming a Realtor. Ethics and the goal of reducing clients liability are at the top of the list. Consider the exposure you might have with an unlicensed property manager, not only representing you as an agent in dealing with the tenants, but the care of the property itself.
3) Professionalism. Most who own investment properties get to that point for a reason. They are successful people, likely a professional, or very good at what they do. As mentioned above, there may be nothing wrong with hiring a property manager that does not have a real estate license, or one that has a real estate license and is not a "Realtor". It can be argued that some property managers only do property management, and are very good at it. Of course, they may have limitations when it comes to helping a client sell the property or buy another, but to some, that does not matter. On the other hand, some Realtors that do property management may need to do it because they are not as successful selling real estate.
So, what should you do? Like always, a good referral is always going to be at the top of the list. After that, or in addition to a good referral, it might be wise to interview a Realtor that is equally successful in selling real estate as he or she is at managing properties. Or, find a Realtor team that handles both real estate sales and property management. This is more rare, but you would essentially have more than one Realtor helping with the management of your property, and more than one helping with future sales or purchases.
If you have any questions in regards to the above material, please contact Glenn or Therese Mendell at 925 735-7555. Glenn and Therese are Realtors and the broker/owners of Fox Real Estate in Danville, CA. They have been selling real estate for 30 years, they own real estate, including rental properties, and handle property management.
