Property management is the control, operation, and inaccuracy of real estate. Property management is also a manager of personal property like equipment, physical assets that are developed and used to build and maintain the end items. Welcome to Basic Differences: Property Management and Real Estate.
For example, an owner of the single-family engrosses the service of the property management company. The company will advertise the rental property, screen applicant, suitable candidate, draw an agreement and collect rental income. The company will coordinate with the owner for any maintenance issue and also provide the owners with financial statement and related information concerning the property.
Real estate is the property consisting of land or building and also have the information of the natural resources such as crops, minerals or water.
There are four types of real estate.
1) Land real estate:
The subcategories within unoccupied land include undeveloped, early development or reuse and subdivision.
2) Residential real estate:
It includes both new construction and resales homes. The most common example of the residential real estate is the single-family homes. There are also cooperatives cops, townhouse, high-value homes, and vacation homes.
3) Industrial real estate:
This real estate includes manufacturing building and property. The building can be used for a different purpose, for example, research, production, storage and distribution of Goods.
4) Commercial real estate:
The commercial real estate includes a shopping center and malls, medical and educational buildings, hotels and offices.
Difference Between property management and real estate:
Property management and the real estate are different industries with some edge. Property managers and real estate agents occupy different roles in the real estate world, for example, the former may work with the latter when a rental unit needs a resident.
If you are a landlord and you do not live near your rental property, you may want to hire property managers to manage your investments. Property managers generally charge between 5 and 10 percent of the rent revenue and they do not come cheap. A property manager specializing in affordable housing will route the undergrowth of regulations to ensure you are in agreement.
To be continued!