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There are two angles to the job opportunities in the real estate sector. There is the professional angle and there is the non-professional angle.
The professional angle
This involves rendering of services that required specialized training, certification and registration.
These areas are limited to qualified professionals and it will be deemed illegal if you engage in such activities without the required qualifications.
Such qualified professionals include estate surveyors and valuers, legal practitioners and quantity surveyors.
The non professional angle
The non-professional aspect involves the sourcing for and dissemination of property information contact and connections and making brokerage or agency commissions in the process. The non-professional aspect is the focus in this chapter
The real estate business
The real estate business works on information. Real estate investors and practitioners need information on who wants to sell, who wants to buy and what they want to buy.
Both sellers and buyers have specific interests such as price,vacant possession and genuine title.
There are certain rules of trade to every profession and real estate business is not different. A person who intends to act as a real estate agent must be ready to learn, work hard and preservere.
Having a mentor is certainly an excellent way to have a good head start.
Most real estate practitioners have some little space for those willing to start at the lower rung of the ladder and are ready to work hard. There are spaces for those willing to work for free and for a commission. That is,you are prepared to forgo the monthly salary and be paid based on your actual performance.
Since,the lower rung of the real estate business that allows for a non-professional involves sourcing for and marketing property information, anyone with reasonable intelligence and drive should be able to do this business profitability.
At every point in time there are always individuals searching for specific types of properties to buy or lease/let and whatever they are seeking for is definitely available somewhere. Your job is to connect these two groups together for a few or a portion of the fees popularly referred to as “agency fees”.
The professional or main agent that has been given the instruction to sell or lease the property has a legitimate way of accommodating this either by not charging your client a fee to allow him or her to pay you or by splitting a portion of his or her fees with you as the case maybe.
Effective property management
Buying or building a property is important, managing it effectively is also very important.
Property management begins with the building or buying of a property and then proceeds to several other issues that could determine whether or not your initial real estate investment is profitable.
Rental income
Property management is one of the primary sources of cash flow in real estate business. Without rental income,the property will appreciate in value and if you decide to sell it in the future you will make a handsome profit.
However, rental income puts money in your pocket while the property continues to grow in value. It is the proverbial symbol of eating your cake and having it.
The role of a property management company or a property manager
Many people wonder whether or not they should manage their properties themselves or hand them over to a property management company or a property manager.
The key consideration in such people's mind is the fees charged by these professionals. What many people fail to realize is that property management is one of the toughest jobs in real estate.
If you desire to manage your properties yourself be prepared for hard work, insult, negotiations and regular interruptions to your schedule especially when there is a need for maintenance. But once you have settled that, you are ready for the next phase.
Ideal rent
Whether you are renting out a property on clients behalf or doing it for yourself, you need to determine or agree with your property manager on the ideal rent that you want.
This is normally done by comparing the rents charged for adjoining properties and the infrastructure or facilities in place in the particular premises.
You should understand that if the rent is too high it will scare off potential tenants and they will go and rent elsewhere. Also it is important to disclose to potential tenants any additional charges or levies that you normally charge
For instance, some property managers insist on the payment of security fees or bonds by the intending tenants. Agreement and agency fees also come into play at this stage.
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There are always tenants looking for rent and properties and all you need to do is to place the information where they are most likely to find it.
One of the basic facts in advertising rental properties is that your likely source of a tenant is by referral from neighbors. This means that a simple sign on the property will usually generate interest that may bring you and the right tenant in contact.
More recently, with the large number of people on the internet growing daily, it has become a very good platform for advertising properties for rent. These are no restrictions on the means of advertising the property you want to rent.
The platforms are many and you should use as many as you are comfortable with.
Handling potential tenants
It is important to have a process for handling potential tenants. Experienced property managers normally give intending tenants an application form that contains questions that will help you to have an idea of who the tenant is.
It often contains basic questions like occupation and marital status. A property manager is always interested in the ability of the tenant not only to pay the initial rent but to continue to pay rent when due.
The logic of an application form is the need to screen tenants before they rent the property. It is easier not to rent a property to a potentially bad tenant than do attempt to eject a bad tenant from a property. Simple background checks such as calling their stated places of work or checking up their references could save you a lot of hassles later.
(To be continue.....)