Since real estate agents sell fewer properties these days, many have turned to managing them for a living. It is preferable to make a sure income rather than non, although it is less than they previously made selling houses. Now, finding tenants rather than buyers is more profitable.
Agents with over ten years of experience now find property management a more lucrative profession. The fact is U.S. homes are not selling due to the economy. However, things may be improving. In the meantime, so many realtors have transitioned into property managers that the percentage gained from each rental has decreased from ten percent to eight percent in some areas.
U.S. homes are not selling. Bank loans are harder to obtain. Those who cannot buy, rent. In spite of the incredibly low interest rates on mortgages, a twenty percent down payment is stopping potential homeowners in their tracks.
Current property owners are leasing the houses they cannot sell. According to the last U.S. Census Bureau data, the new renters outnumbered the new homeowners. New rental households increased by 718,500 per year while new owner households decreased by 147,250 per year. These statistics covered the years 2007 to 2010.
This created a need for new property managers. U.S. homes that once were being sold are now being rented. What the property manager does for the property owner is set the amount of the rent, screen the tenants, write leases and collect rents. They oversee such tasks as seeing that properties are properly maintained and rent is paid in a timely fashion. For these services they earn from eight to fourteen percent of the monthly rent.
Although a far cry from the six to eight percent profit on the sale of a home, it is certainly better than not making anything because a home is not sold. Until the economy and the banking procedures once again promote home sales, it is a viable way to earn a living.