1.  Evens out the rough spots The real estate broker profession is a profession in which its participants will go six months without making a dime and then the stars align and $40,000 falls into the brokers lap.   The exhilaration of a large bank balance is soon forgotten as office overhead and overdue personal bills are paid and the roller coaster repeats itself.  In the feast-or-famine world of real estate sales, the management fees collected from real estate investment properties provide a stabilizer effect to help even out the peaks and valleys of 100% commission income.  Through the use of a property management business, the 10% management fees from collected rents can easily provide a broker with an ongoing income stream with which to pay office overhead. This stream of income can turn into a full-fledged river after several large properties have been placed under management; enough money to pay a salary in order to even out the ebbs and flows of real estate markets. 

2.  Crack the often elusive trusted advisor circle Property management not only provides extra income through management fees, but also provides brokers opportunity through getting on the inside of a tough, but lucrative market - a real estate investors inner circle of trusted advisors. Many agents do not realize that the best deals never make it to the MLS. When it comes time for an investor to sell a real estate investment, they will work with an agent they feel is the most competent agent for marketing the investment and representing the investor. This may be a broker who manages the property or it may be a broker they have had success with in the past, but the property manager certainly has had plenty of opportunity to demonstrate levels of knowledge, skills, and competence.   

3.  Provide an endless supply of would-be homeowners Eventually most renters will leave the rental market and enter into the world of owner-occupancy. Who do you think a renter turned would-be owner will look to when they are ready to purchase? An agent whose face and phone number have faded off the bench at the corner bus stop or their broker/property manager who was willing to work with them on their late rent while their baby was in the hospital?   Starting a property management business is not only a great way to increase income to offset sagging sales, but also help build a loyal clientele of investors and homeowners for the future.