Property Management and Real Estate are two separate industries that are often summoned up as one. People who are unaware of the differences go ahead to classify the same as one based on certain forms of overlapping. Due to this mix, the truth of the matter will be hidden, i.e. the differences. So to put an end to these misconceptions, we are here to talk about the significant differences that underlie both these industries. Hence, go ahead and keep reading to know more.
1. The Process
When it comes to the process or the entire mode of functionally, the real estate industry goes ahead to deal with listings and selling of properties. This particular task is done on behalf of the owner as a move to facilitate the entire process and make things head in the right direction. On the other hand, property management deals with the management aspects of the property. For example, if there are repairs, tenant issues and other maintenance problems, then the management will enter the picture in order to clear things out. This is also done on behalf of the owner.
2. The Relationship
The kind of relationship that you share with a real estate agent and a property manager tends to differ for a whole bunch of reasons. Real estate agents are here to facilitate the process, and anything above the same will not fall under their list. As a result, the relationship that you share with a real estate agent will be transactional, and once the purchase is done, the deal will be completed. But the process or the relationship with a property manager begins soon after purchasing a particular property.
Yes, that’s right. The duration of the same is longer, and they extend their support to the overall development of your property. From looking into small details, they go further into managing massive forms of repairs that need the touch of a professional. As a result, this long term relationship is contractual, and a percentage of the rent is paid to the property manager.
3. The Industry
In terms of business, both these industries come ahead to quote different terms as their transactions are also quite different. The property management industry is relatively vibrant and carries on the process without facing constant changes like the real estate industry. While the value of a property either remains the same or goes up, the real estate industry at times enters a slump. Due to that, both these institutes offer different sets of opportunities, in case you’re looking to start a career. So analyse both these differences and utilise the knowledge for all the right reasons.