It is easy to confuse the difference between a real estate broker and a property manager when you are a new landlord. When you are attempting to lease a property, both property managers and brokers seem like experts. However, once you have leased your property, the relationship with your real estate broker typically ends. At that point, you either manage the property yourself or seek a professional property management agency.
If your goal is efficiency, you will want to select a real estate broker that also offers property management services. Unfortunately, highly qualified brokers that manage properties on the New Eastside are few and far between. Not all real estate brokers are property managers and it is important for landlords to understand why. Let’s discuss two of those distinctions.
Transactional vs. Continual
Real estate brokers typically part ways with their clients once the property is leased. They cannot do it all and they don’t try. Their role is transactional. An effective real estate broker understands the New Eastside inside and out, will effectively guide potential tenants through the neighborhood, then match properties to the tenants’ budgets. Using their market expertise, brokers will then negotiate and close deals to maximize ROI for landlords. In return, landlords pay the brokers a commission based on the negotiated rent.
Property managers, on the other hand, have a much longer-term relationship with landlords. They are continually working as a conduit between landlord and tenant. They are paid a percentage of rent collected each month. Property managers consult with landlords and handle important rental property transitions like:
Move-in checklists
Direct deposit set-up
Security deposit procedures
Key transfers
Lease renewal procedures
Lease renewals
From small requests to large projects, property managers ensure seamless transitions between old tenants and new. Very few real estate brokers attempt to stay involved with landlords after the unit is leased.
Staying Competitive in the Chicago Market
Since real estate brokers wrap up a lease and then exit the transaction, they may land you new tenants at an excellent rent. But, if those tenants become long-term lessees, how will your property stay competitive in an ever-changing New Eastside rental market? On one hand, you want to keep great tenants but on the other hand, you want to make a profit. How will you achieve this balance?
Property managers not only assist landlords with ongoing tenant relations, they also know what to charge for rent – and when to raise it. Coming up with fair rent valuations is sometimes difficult for landlords that are not immersed in the Chicago real estate market. Negotiation is challenging when you are not accustomed to it. Property managers do not pick random rent amounts, they understand factors like:
Comparable rents
Comparable amenities
Proximity to local attractions
Access to public transportation
Often, these economic indicators are not readily known and require years of working in a particular neighborhood to learn. Partnering with a property manager that understands the New Eastside neighborhood and is privy to the latest economic information will position your rental property for excellent future returns.
Who is Ginger Menne?
One of New Eastside’s top-selling real estate brokers and property managers, Ginger has worked and lived in the neighborhood for over 15 years. Ginger assists landlords across the entire rental life cycle. If you are looking for a highly competent broker and property manager that delivers results, contact Ginger anytime at (312) 927-0852 or learn more at her helpful website.
