The Importance of Property Management Copy

Property Management is the backbone of most real estate agencies.

In terms of assets, the rent roll will, in most cases, represent the bulk of the assets of the business.

The income produced from the rent roll often supports the operation of the business as a whole. What this means is that very often the rent roll income and the profits provide the cash-flow necessary to keep the business open and, at the least, be sufficient to cover the rent (or finance) for the office and the office overheads (electricity / water / copier / stationery etc).

The main difference between the income from the Property Management and the sales operation is that the rent roll income is stable, and varies little from month to month.

The other benefits to the business from the rent roll are that the business benefits from an ongoing source of:

• Potential sellers (owners who are selling their investment properties)
• Potential buyers (tenants who become buyers)
• If managed well, hundreds of people who can provide valuable referrals for the agency

The sales department, however, is subject to fluctuations, from month to month and year to year, and there is limited stability.

There are many more factors that influence the market for sales than there are in property management. This can lead to fluctuations in income and profit for the sales department and business owners.