In the realm of real estate, professionals play diverse roles to ensure that the industry functions smoothly. Two critical roles are often confused due to their similarities but are fundamentally different in their responsibilities and objectives: property managers and real estate agents. In this post, I’ll discuss the main differences between the responsibilities of a real estate agent and a property manager. Alright, let’s get to it!
Primary Role: Real estate agents facilitate the buying and selling of properties (houses, condos, townhouses etc.) on behalf of their clients.
Licensing Requirements: In British Columbia, including Victoria, real estate agents must complete education and training programs, pass a licensing exam, and work under a licensed brokerage. You can check out this article on how to become a realtor in BC for more information on real estate licensing and education.
Client-focused: Real estate agents work directly with clients to help them buy or sell properties. They act as intermediaries in real estate transactions. In BC, a listing agent and a buyer’s agent cannot represent both sides of the transaction.
This is known as dual agency and is banned in BC. Other helpful professionals clients will interact with when buying or selling a home will be lawyers or notaries, appraisers, and home inspectors.
Property Marketing: Real estate agents market their listings for sale by hiring professional photographers, creating floorplans, virtual tours, organizing open houses, and utilizing their network to reach potential buyers.
Negotiation: Negotiating offers and counteroffers is a significant part of a real estate agent’s role. Through negotiations, they look out for their clients’ best interests and negotiate terms and conditions that are important to their clients.
Contracts: Real estate agents help clients navigate the complexities of contracts and agreements, ensuring all legal requirements are met. For more information on contract terms, you can check out 6 Main Elements In a Contract of Purchase and Sale.
Market Insights: They provide their clients with insights into the latest market trends, property values, and investment opportunities in the housing market.
Commission-based: Real estate agents earn a commission based on the sale price of a property. The commission is split between the listing agent and the buyer’s agent, and the seller is typically required to pay the commission of both the listing agent and the buyer’s agent.
Primary Role: Property managers focus on managing and maintaining rental properties on behalf of their property owners (landlords).
Licensing Requirements: In British Columbia, property managers must be licensed under the Real Estate Services Act, hold an active property management license, and work for a licensed brokerage.
Client-focused: Property managers work on behalf of property owners (landlords) to maximize the rental income and efficiencies of rental properties.
Tenant Relations: Property managers are responsible for finding and screening potential tenants, handling lease agreements, and addressing tenant concerns. Because of this, the landlord does not have to communicate directly with their tenant. All communication is done through the property management company.
Property Maintenance: Property managers oversee property maintenance, repairs, and regular inspections to ensure the property is in good condition.
Rent Collection: They collect the tenant’s rent and handle financial aspects of the property, including budgeting and financial reporting.
Legal Compliance: Property managers ensure that the property complies with all local, provincial, and federal laws, including tenancy regulations.
Emergency Response: They are available to address emergencies and urgent matters concerning the property.
Fee-Based: Property managers are usually paid a fee based on a percentage of the rental income they manage or a fixed fee. A typical fee is 10% of the monthly rent. So if the month’s rent is $1700, then the monthly property management fee would be $170 plus 5% GST.
Purchasing a Home: A real estate agent is your best ally if you are looking to buy a property in Victoria, especially if you are unfamiliar with the local real estate market. They can guide you through the buying process, help you find the right property, and negotiate on your behalf.
Selling a Property: When it’s time to sell your property in Victoria, a real estate agent can help you market it effectively, attract potential buyers, and negotiate the best possible terms and conditions to help you get the most value and sell your home quickly.
Property Investment: Real estate agents can provide valuable insights into the Victoria, BC, market, making them an essential resource for investors seeking to expand their real estate portfolio.
While property managers and real estate agents in Victoria, BC, have distinct roles and responsibilities, they often collaborate to achieve the best outcomes for their clients. Real estate investors who own rental properties may work with both professionals, with real estate agents helping them acquire properties and property managers ensuring their investments run smoothly.
Ultimately, understanding the differences between these two crucial roles is essential for making informed decisions in the buying and rental aspects of the Victoria, BC, real estate market. Whether you’re a prospective homebuyer, seller, or property owner, aligning yourself with the right professional who has a strong understanding of the local market is key to achieving your real estate and financial goals.
*Disclaimer: The topics of discussion, content and resources on this website are general information that may not be the right solution or advice for you specifically. Not intended to solicit buyers or sellers currently under contract with a brokerage.
*Stock images from Social Squares
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