If you are looking to buy, rent, sell or lease a residential or business property, your best bet is to hire the services of a qualified real estate agent. This individual will assist you in finding the perfect location or a suitable tenant if you want to rent out and guide you on the many intricacies that this process entails.
But what if it is you who is responsible for helping others? What if you are a starting independent real estate agent or are working in a small agency with a few others? How can you properly navigate the industry waters and find yourself striving in a highly competitive arena?
Unfortunately, there are no cookie-cutter answers to these and other questions about the real estate industry. Yet, there are a few business management tips that will ensure you remain with your head above water and make the best out of your enterprise.
Let us look at some of the most important ones.
Learning from Others
Renaissance Dominican friar Girolamo Savonarola once said, “don’t be ashamed to learn from others.” There is nothing wrong with accepting that someone else might know more than you in a particular subject. If you ever want to achieve growth, the first step is to take an honest look at yourself and realize where your strengths lie and in which areas you might be lacking.
It is certainly true in real estate, an industry in a constant state of change, and beginners are often left in the dust, far behind experts and professionals. As such, find a mentor you can trust and listen to what he has to say. And if there isn’t anyone, then take a relevant course and enhance the knowledge you already have.
Managing the Details
Setting up any business entails a series of legalities. One of the most common ones is understanding what kind of enterprise you will be starting. If the only person working in your organization is yourself, the decision is very easy, and you will more than likely register your firm as a sole proprietorship. On the other hand, if you work with others, there are ample options to choose from, including general and limited partnerships, limited liability companies or LLC, and professional corporations.
Aside from this, there are other factors to consider when embarking on a career in real estate. You need to get an operating license and different permits based on the area you will be focusing on. By doing your due diligence on these matters, you will prevent future headaches from ever taking place.
Technology as a Tool
Technology is there for a reason. It exists to make your life and the running of your business better, faster, and more efficient. Thus, it is essential to know how to incorporate it within the framework of your enterprise.
In real estate, nothing is more important than getting leads and turning them into successful accounts. While the vast majority of agents know this, even in the 21st century, there are still plenty using traditional, obsolete ways to gather and process information.
Instead of spending time in clerical work and therefore wasting valuable face-to-face communication with prospective clients, those in the real estate industry should leverage CRM systems and other mechanisms that automate basic processes at a fraction of human labor cost and time. Apart from being cheaper, they are also less prone to error.
Having the Right People
No capital is greater or more valuable than human capital. Oftentimes, the difference between a thriving organization and one on the brink of bankruptcy is the quality of its employees.
When it comes to real estate, this couldn’t be truer. In fact, it is arguably an essential factor contributing to prosperity. Having the right people entails assembling a team of like-minded individuals with the skill and willingness to do what it takes for the enterprise to grow. It also means letting go of those who do not contribute or create a toxic environment within the organization.
If your business is at the beginning stages, make sure you take the time to find passionate individuals who care about the company and are not only there to make a commission on property sales and rentals.
Four excellent pointers for managing a real estate business are learning from others, taking care of the details, using technology appropriately, and building the right team. Whether you are a novice in the field or an agent with 20 years of experience in domestic and international markets, they will help your organization flourish under any market conditions.