Real Estate Vs Property Management

Last Updated on May 18, 2023

Real Estate Vs Property Management

Real estate agents and property managers are of course the specialists to turn to when you’re looking for real estate to invest in. Given that many real estate firms also provide property management services, investors are frequently perplexed about the distinction between the two.

If you’re serious about building a property portfolio, you need to grasp the key distinctions between them and how each can help you achieve your investment objectives. We accept that both play a significant part in helping you find and maximise your investment.

What is Property Management?

A third-party contractor’s daily control over residential, commercial, or industrial real estate is known as property management. They typically work with those who own investment assets including shopping malls, industrial parks, private home communities, and apartment and condominium buildings.

You might want to hire a property manager to look after your investments if you own multiple units or are a landlord who doesn’t live close to your rental property. Since they often charge between 5 and 10% of the rent collected, property managers are not inexpensive. But a property manager can come in handy if time, distance, or other reasons make it difficult for you to manage your rentals effectively.

This is especially true if your apartments are a part of an affordable housing programme with stringent guidelines. A property manager with expertise in affordable housing will sift through the maze of rules to make sure you are compliant.

When it comes to rental properties, a property manager’s responsibilities are extensive. In addition to collecting rent, they also market available apartments, screen renters, handle tenant complaints, create lease agreements, and, if required, prosecute evictions. Regular inspections by the property manager ensure that the structures are up to code and that any aesthetic problems have been resolved. The property manager handles all necessary documentation, including tax-related paperwork, hires licenced contractors, stays current on legislation that may affect the properties in question, ensures that units are cleaned and repaired when tenants vacate and keeps the landlord informed.

Read: 10 Questions to Ask Your Landlord Before Signing a Lease

The Real Estate Industry

The real estate sector is a thriving one that offers many intriguing job opportunities. These people are involved in a variety of steps in the house buying and selling process. Here are a few of those participants to consider.


These participants purchase land with the intention of developing it into residences, apartments, commercial spaces, or other real estate properties. Imagine that a new community is being built close to your house.

While it is now simply a sizable empty lot, the developer is working to design the neighbourhood, obtain the necessary permits from the city, and set up the construction team in order to build homes, make roads, and install curbs and gutters. The developer is responsible for making sure the land is surveyed and that each lot on each piece of property is properly named.


These participants are the individuals or entities that own property and have purchased it for residential or commercial use.


These participants are people, families, or businesses that lease a home or a building for a specific purpose. You have been renting your flat for about a year, so you are familiar with being a tenant.

When you first moved in, you signed a lease that entitles you to live there and utilise the property as intended. Your lease specifies the activities you are not permitted to do inside or on your property, including opening a business, breaking the law, or throwing crazy parties.


These participants are people and families that buy a house with the intention of residing there themselves or renting it out. You’d deal with a lot of buyers in your role as a real estate salesperson.


These participants are people who want to sell their house or other property to a potential buyer, possibly one who will live there. The ones who assist people who want to sell their property have to help their clients market the property in order to get buyers.


These participants are mortgage lenders who provide eligible borrowers with loans to buy real estate. You’ve made it easier for Patty to sell her house. Because they lacked the money to buy the house outright, the buyers had to obtain financing.

Their lender handled the paperwork, had Patty’s credit checked, had the house evaluated, etc. They gave the buyers a cheque for the agreed-upon loan amount at closing so they could buy the house.


These participants are real estate agents, consultants, or anybody else who aids and directs a person or group in the purchase or tenancy of real estate. A real estate transaction can be aided by a variety of advisors.

Key Differences Between Real Estate and Property Management

Real estate sales are a transactional business, but property management is a contractual company. This is the primary distinction between the two sectors of the economy. A contract between a property owner and manager typically stipulates that the property manager will receive a percentage of the rent collected in return for their services.

Many owners opt for specialized property management services rather than real estate agents with secondary property management functions. The property management sector requires administrative skills and offers consistent service quality. Property owners prefer dedicated property management companies unaffected by market fluctuations.

Do You Need Real Estate Asset Management or Property Management?

A property management firm and a real estate asset management company offer some of the same services. The comparison stops there; both may handle budgeting and marketing duties.

Managers of real estate assets concentrate on the larger picture. They create a broad strategy to achieve the objectives of the real estate investor, much like the generals in a war room. The people that are on the ground are property managers. They are on-site and follow instructions to complete the tasks at hand.

A real estate investment manager is not required for every real estate investor. However, anyone with more than a few homes ought to think about hiring a property management firm.

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