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The Symbiotic Relationship between Brokers and Property Managers

There is an interesting trend between Brokers and Property Managers entering into each other’s domains in the Real Estate Industry. We first noticed this trend in the western countries but we’re starting to see this increasingly across emerging economies as well. The relationship between Brokers and Property Managers is becoming very symbiotic and this could change the landscape of how these integral components within the Real Estate industry operate. Let’s explore more about the trend of brokers and property managers increasingly finding common ground in each other’s domains. 

Brokers Transcending to Property Managers

Real estate brokerage, while lucrative during peak seasons, is inherently a seasonal business. Brokers often experience fluctuations in revenue, with periods of high sales activity followed by lulls. Recognizing the need for consistent cash flow throughout the year, many brokers are now venturing into property management.

Property Managers Transcending to Brokers

Property managers are finding their way into the brokerage arena. While property management provides a steady income through management fees, the profit margins in this sector are often slimmer. Recognizing the potential for increased profitability, property managers are supplementing their revenue streams by adding brokerage services.

Why is this Trend so Prominent?

The prices in this case are set up at the beginning of the year. This way the property manager or operator does not have to worry about the price changes through the course of the year. In case of an increase or decrease in price, the property manager/operator can edit the multiplier set. 

For Brokers, this is the opportunity to leverage their existing client base and expand their services beyond the transactional nature of buying and selling properties and offer Property Management services as an auxiliary service. 

For Property Managers, having an existing client base from property management allows them to seamlessly offer brokerage services to investors who are already familiar with their caliber of services.

Why is this Trend so Prominent?

For Brokers transitioning into property management, the challenge lies in developing a nuanced understanding of the ongoing management needs of properties. This includes

For Property Managers venturing into brokerage, they need to master the art of property sales. 

As the industry is evolving, we’re going to keep a close eye on the developments and the trends that might be emerging. With Brokers leaning to Property Management and Property Managers leaning towards Brokerage, we’ll experience a dynamic change across the industry. 

At Monk Tech Labs, we are a partner to Property Managers and enable management of real estate through TheHouseMonk and TheOfficeMonk. We are excited to watch this industry evolve and keen to continue supporting its digital transformation efforts.