Understanding property management vs. Real Estate

property management and real estate are two industries related to property, but that is the extent of their similarities. They may both deal with the same industry of housing but have completely different functions which are easy to confuse. This article serves to settle some of that confusion by clearly defining the differences between property management and real estate.

Key Differences between property management and Real Estate

The key differences between property and estate lie in the way their management functions. For example, real estate deals with listings in order to sell properties on behalf of its owners, while property management deals more with the property long after the sale has been made. This includes everything from maintenance and repairs to any potential tenant issues.

Essentially real estate is transactional in nature while property management is contractual whereby they earn a percentage of the rent collected for their professional property management services.

A property management company will not be affected by the real estate market which is constantly fluctuating. Residential property management services deal with existing properties currently being occupied by tenants. The aim of professional property management services is geared towards making living comfortable for both owners and tenants by ensuring all processes and procedures run smoothly for all the parties involved.

Real Property vs Real Estate

This is also something that tends to become confusing when discussing property. Real Estate refers to the land, resources and permanent structures on said land. Real property is a broader term which includes the five main rights of the property owner. These rights include occupying, enjoying, selling and sharing of that property and that the owner reserves the right to make these decisions as well as refuse anyone access or use of the property as they see fit.

Now you know the difference between real estate and property management, so if you are looking to buy or rent a new home ask your agent if the property is governed by a property management company. This way you know that when you do move in everything will be handled for you by professional property managers for the duration of your stay. As a property owner you have the peace of mind knowing that residential property management services will handle all the nitty gritty elements for you, even if you own multiple properties.

If you are looking for a property management company to deliver professional property management for you and your tenants contact Mansfield Property Solutions.

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