If you are considering using your real estate sales agent to place your tenants or as a property manager for your rental home, you’ll want to make sure that they are truly qualified. You’ll need to make sure that they have the knowledge, skills and experience to manage your property correctly.
The main job of a real estate agent is to help people buy and sell homes, not manage rentals. Most actually hope that you get frustrated with renting your home so that when you do they are there to “suggest” that you sell it instead in hopes of getting the sales listing. So, before you turn over the management duties to a Realtor, find out if they know all the laws and regulations involved in managing property. What type of lease they plan on using, what is their collection process, how do they monitor lease compliance and handle lease violations and do they have a professional property software systems to assure a smooth process?
Florida has some very stringent tenant/landlord laws and they have to be followed so a misstep here could be legally and financially devastating. You also need to know if your Realtor has the required insurance to manage property. They’ll need professional liability insurance as well as an Errors and Omissions (E&O) policy is also necessary for property managers. Find out if your Realtor has a segregated trust account to hold and disperse tenant and owner funds. That account will need to be reconciled monthly and to be compliant with Florida laws, so make sure it’s legally compliant. Finally, inquire about whether your Realtor has a full staff to assist with the day to day property management responsibilities. You’ll need to know someone is taking care of your property and your tenant. Here at InvestPro Properties we are accessible 24/7.
Our intent is not to suggest Realtors shouldn’t do this job. We want real estate agents to know that it better serves their clients to refer them to property management experts.
So if you were thinking about using your Realtor as your property manager, make sure they are experienced and qualified. It’s crucial to have the right insurance and know-how. Property management is not just about finding a qualified tenant. There’s a lot more to it, and a real estate agent has to be prepared and have all the necessary skills in place.
If you have any questions about how we can work with your Realtor, please contact us at InvestPro Properties if you have any questions. We’d be happy to share our expertise with you.