Agent Training Resources

Why add management services?

Hi, I'm Scott Brady and I'm the owner of Progressive Property Management. And this video is for agents, agents who may want to consider adding management services to their array of services as a realtor. So specifically I'm going to talk about Progressive Property Management because we're a brokerage that normally allows our agents to do property management. We encourage them to do property management. In fact, we even sell them doors to manage. So the first thing we are going to talk about is why should you, as a real estate agent, add management services? Well, the first thing is, probably the most important thing of all - is that it provides stable monthly income. If you're a real estate agent and you sell two, four, six, even 10 homes a year, your income is not stable. You might sell one in February and two in March and zero in April. With management services, if you're managing, say, 50 properties, 50 doors, we call it, you're guaranteed to make a gross income of X, call it six thousand. And after our split, all of our, we call them branch managers, are on a sixty-five/thirty-five split. So if you're making six thousand gross, you're gonna walk with four thousand dollars a month. That's kind of guaranteed. It's stable, it's subscription business income. And the goal is to add more and more properties and keep on growing that. So the first and number one reason to do property management is that it is stable. You get off the real estate income roller coaster and you can use that money to pay for your mortgage. You use it to pay for marketing. The second thing about property management is that every property you manage, hopefully if you do it well and you market to your owner properly, is a home you're gonna sell in the future. So if you're managing those same 50 properties at some point in the next 20 years, all 50 could sell. And you want to be the listing agent. And if you could manage your property well, we find 75 percent of the time they'll list their property with you as well. So that's a good thing. That's future revenue for you. The next thing we would say about the industry is that it's in a big growth mode. I don't know what organized real estate is going to look like in five, 10 or 20 years. I'm sure you don't know as well. Property management isn't going away. We are becoming a renter state in California. Now over 55 percent of people are homeowners, but that means 45 percent of every property you see, every household is a renter. And we believe within five to 10 years, that could be even more than 50 percent. And it's getting more difficult as an owner to self manage. Currently, about 75 percent of investment properties are self managed. I mean, if somebody manages the property themselves, all these laws are being passed and it gets more difficult to do so. It takes more time. It takes more skill. They're going to hire a property management company such as ours, to manage that property for them, and for what we charge, we can talk about our pricing, all our pricing is on our website, you can take a look. But most of our owners gravitate toward the seventy five dollars a month, plus two percent of collected rents. So on a two thousand dollar a month rental, it's a hundred fifteen bucks. Not a bad deal. So those are the three big reasons you should consider adding management services as a realtor. And we help you do that.