Yesterday we discussed about the overlapping areas of PM and EA (in a shopping mall). Today, let us see what could happen in the most likely manner.
To a property manager, his full time job is paid a fee like a Salaried Man. He gets his monthly income. An Estate Agent, however, does not have this privilege. It is by collecting commission on instruction and paid on completed jobs. It is uncertain. Hence, a PM would have a comfortable practice if he has many projects – sustainable practice with consistent monthly income. IF an EA can collect a significant amount of “commission” in tenancy administration, then this EA would put in more effort to have a consistent monthly income in collection of rental. RENTAL market will be an attractive segment of specialization.
This will become an argument point when money in involved. Engaging a new tenant is not so easy. The work is harder than just collecting monthly rental. That is why EA still survive today despite the advantages of Internet marketing. All in all, demand side of the equation is a big hurdle to any business venture. It is out of your control. The frequency that EA will collect rental is higher than a PM who advise a successful tenancy.
Probably, EA would have a higher chance to cash this amendment than the PM. I stand to be corrected.