Although these two words may be used interchangeably by some people, they refer to two different people with a very specific set of responsibilities. However, property managers and real estate agents both work to help people with their housing market needs. This is by providing homes and apartments where people can rent or buy. These properties are usually of varied sizes and locations. Both the property managers and agents, therefore, work to meet the needs of the dynamic housing market. Subsequently, property managers and agent have different responsibilities and specifications in their line of duty. Some of these include’;
The type of work: Property managers’ main task is to ensure that the place is habitable before and after the tenants enter the house and to generate good rental income on the property. This is through providing services such as cleaning, managing units, repairs, and renovations when necessary. Also, property management companies take care of rent payments, applicable taxes and even leasing of the property. This management company, therefore, hires staff to do these jobs.
On the contrary, real estate agent service is more transactional in nature. They provide lists of homes and apartments that are for sale. The agent, therefore, gives the types, price ranges and locations of the property. Their main work is to bring potential buyers and sellers together. Agents need to know the laws and procedures controlling property deals in that particular location. This helps them guide the buyers and sellers through the process of negotiating and obtaining a good deal for both the buyer and the seller.
The employer: Property management companies are usually employed by the owner of the property. This makes them answerable to the owner for the various tasks assigned to them according to the agreement and the scope of work mentioned. On the other hand, most real estate agents state the terms and conditions of their commissions. Similarly, someone looking for a house to buy or rent can hire a real estate agent to help them find a suitable place. In this case, they are employed by the prospective buyer till the deal is completed.
The earnings: Property managers usually charge their owners depending the type and amount of services provided. Like for instance, the amount of rent collected. Another factor may be the size or value of the property under management. Generally, the property management fees are 10%-18% of the rent generated though sometimes it could be fixed fees. On the contrary, real estate agents usually earn commission on the property sold. These agents lay down the terms and conditions of the earnings. Similarly, an agent can receive a commission from a seller or buyer who directly hires them.
Registration: Just like any other business property Management Company requires registration with Ministry of corporate affairs (MCA). Being a company they need to file all required details with the Registrar of companies (ROC), Income Tax department etc. Agents in India, on the other side, can practise without any licenses. If they are individual agents, they don’t need to file any documents with MCA. Real estate regulation bill is the first step towards regulating the real estate agents in India.