A new RRC online course teaches you property management essentials
By Gwen Moran
Jen MacLay and her husband, Brad MacLay, both CRSs and founders of Chandler, Arizona-based MacLay Real Estate, LLC, left the corporate world to pursue careers in real estate during the early 2000s. Coached by her grandparents, who both were successful REALTORS®, the MacLays were warned that their income may experience highs and lows. And such volatile income, especially in the early years, can be stressful.
But like most wise grandparents, they offered a solution: consider adding property management to your real estate portfolio. Jen MacLay’s grandfather, a successful property manager himself, advised them that adding these services to their real estate business could ease erratic cash flow by providing additional income.
Chart your course
Like MacLay, Shawn Cunningham, CRS, team leader at RE/MAX Advantage in Henderson, Nevada, says his property management services are invaluable to his real estate business.
The next level
The Property Management Essentials eLearning Course is a self-paced, online lesson. You will gain deeper and broader understanding of the property management process, legal and contractual considerations, as well as take-away best practices and expert tips for success. You will learn directly from leading CRS designees who have successfully integrated property management as a profitable component of their real estate businesses. This course is ideal for REALTORS® who need a blueprint for initiating a career as a professional property manager, and also for experienced property managers who seek tools and techniques to propel their businesses to the next level.
During the Great Recession, Las Vegas lost half of its REALTORS®. Pivoting to focus on investors saved Cunningham’s business—and the fact that his team offered property management services gave them a competitive edge, he says. “An investor wants to buy and hold a property to rent it out. It’s almost market-proof,” he says.
MacLay advises REALTORS® to discuss their property management goals with their brokers. “You want to be sure there is no issue there,” she says.
Make the shift
In addition, it’s important to realize that property management requires somewhat of a perspective shift from being a REALTOR®, says Michael Burkhard, CRS, managing broker at Bray & Co. Real Estate in Grand Junction, Colorado and RRC vice president. While real estate requires engaging buyers and sellers and providing them necessary services, managing tenants may present more complicated scenarios. Burkhard’s office manages more than 1,000 properties.
“As a property manager, you work for the seller or the owner of the property. You manage based on the owner’s needs, and then represent the property rights of the tenants,” he says. “Sometimes people experience challenges in their lives, but as a property manager, you are required to treat the tenant relationship in a businesslike manner at all times.”
Getting started
For those who are serious about getting in the property management game, it’s a good time to start. Today, the number of renters is greater than any time in the past 50 years, according to the Pew Research Center.
And, for REALTORS® who work with investors, offering property management services can offer a competitive advantage.
1. Take the course: RRC’s new Property Management course features expert advice from four REALTORS® who have experience launching property management businesses. And getting the right training is essential, says Debbie Yost, CRS, co-owner of Yost Realty Group at RE/MAX Casa Grande in Casa Grande, Arizona, which offers property management services. Yost says this is an area where quality training is essential. Agents who offer property management services need to understand the myriad federal, state and local laws, ordinances and regulations that govern the real estate business, she says. The e-course is a great place to start.
2. Decide on your offerings: There are two key segments of property management: leasing, which many agents and brokers will add on to their offerings; and representing the landlords, which includes collecting funds, managing tenant issues, making tenant decisions and performing inspections. “Property management is an area that creates frequent consumer complaints. I suggest folks work with an experienced company or mentor first, rather than dabbling in this specialty,” Yost says.
3. Assemble your tools and team: A well-run property management business needs a software platform to manage payments, expenses and other transactions. In addition, you’re going to need a good accountant and real estate attorney whom you can consult when questions arise, MacLay says. “Make sure you hire someone 10 times smarter than you,” she jokes.
Getting started requires a fair amount of preparation and training. However, adding property management services to your business can help diversify your revenue streams and provide a competitive advantage to your real estate business. 
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Management consulting
There are many tools available for property managers to use, including a wide variety of software programs. They make it easier to function as a property manager by streamlining commonly performed tasks and functions. Some of the most popular include:
AppFolio Property Manager (appfolio.com): This all-in-one, cloud-based solution allows you to manage single-family and multifamily properties; screen tenants, sign leases and collect payments online; and resolve maintenance issues quickly. The mobile app provides access to the information you need from anywhere.
Tenant Cloud (tenantcloud.com): This “free-mium” solution has a free limited version and a pay-for-use version with additional features. The free version allows you to collect rent online, automatically screen applicants and issue invoices.
Propertyware (propertyware.com): This powerful platform allows you to conduct transactions online, and also offers owner and tenant portals, allowing them at-a-glance access to necessary information. Invoicing, tenant screening and accounting are all important features. In addition, work orders for repairs can be issued right from the platform. Mobile app available.
PayByGroup (paybygroup.com): This useful mobile solution allows property managers to collect money individually from roommates. It is especially popular in vacation rental markets.
