Is advising on sale, purchase or letting constitute estate agency?
The question I want to ask is “advising on sale, purchase or letting decisions” by PM is also part of the job of EA. Similarly, Estate Agency Practice definition included “in making know of” which is “making someone aware of”. Isn’t that “advising” as used in Property Management Practice?
For eg. As a PM I have a landlord who is interested to rent out a 2000 sqf shop floor in my mega mall, and I can advise him to take a retailer (my cousin) to be his tenant. Can I ask for a commission for this referral? Probably NOT! The fee is already included in the professional fee of Property Management Practice.
Similarly, as an Estate Agent, I can provide tenancy administration including rental collection, payment of outgoings, arrangement for minor repairs and handing over/taking over property (keeping keys) while awaiting potential tenants. This seems part of property management. BUT, you probably cannot charge a Property Management FEE because you are not a Property Manager!
This overlapping area is rather vague, however if there is no extra fee incurred… I believe there is no issue. It is the choice of the client if he wants to appoint a separate PM or EA who has to prove “Value” in this service. Nevertheless, a PM will disagree when collection of rental is paid a commission monthly (for just collecting rental). The EA would disagree when commission is paid to the PM who advised the landlord on letting his property.
Indeed, it is a jungle out there! Synergy is probably a way out, by having a team of PM and EA working together! Amidst, the internal fee structure has to be sorted out!