What is an independent property manager and how can they leverage this business model for financial and career success?

As more and more professionals embrace the idea of a flexible working life, the real estate industry is seeing a rise in independent operators. 

This includes one-person real estate agencies as well as independent property managers. 

If you’re considering hiring an independent property manager or becoming one yourself, take a look at what’s involved with this type of micro-business.

What is an independent property manager?

An independent property manager is something like a freelancer. They are not tied to a specific real estate agency and they aren’t part of a franchise. They have their own brand and their own specific business practices. 

This property professional either purchases or builds a rent roll then manages it as their key source of income. Often, an independent property manager will partner with financial advisors, mortgage brokers or local real estate agents to establish a strong referral network. 

Independent property managers almost always have experience with larger agencies. They are likely to have managed a large team as part of their roles. Becoming independent has given them the opportunity to work for themselves, on their own terms. More often than not, they have a drive to provide a premium level of customer service for their clients. 

Instead of keeping their property management in-house, a real estate agency may partner with an independent property manager. This gives them someone to rely on and a potential source of revenue (if a referral fee arrangement is agreed on), without the stress of maintaining a property management side of their business. 

The benefits of independent property managers

Property management can be stressful and property managers often find themselves overwhelmed with too many homes to manage as part of their roles. 

Independent operators often aim to provide a boutique level of service, adding an extra personal touch and making sure they respond to calls within a set amount of time and deliver on their promises. They aim to be proactive, not reactive and can thus be the property manager of choice for luxury or high end property investors. Quite often they have a smaller portfolio than a standard in-house property manager. 

One of the benefits of working with an independent property manager is knowing where this person’s real passion lies. In some circumstances, property managers within real estate agencies have their eye on a sales career and are using their position as a ‘PM’ to build experience so they can make the change. 

With an independent property manager, you will know you are working with someone who enjoys encountering a range of people and is genuinely driven to connect the right tenants with the right homes. 

If you’re an agency with more of a sales focus, an independent property manager can be an excellent way to ensure your clients have a positive experience for their entire investment ownership journey. You will have the added benefit of the property manager coming to you when the owner has decided to sell. 

As an independent property manager, you have flexibility when it comes to your operating hours and your location. This type of career doesn’t urgently require a shop front so you can save money on office rent. You are also able to pick and choose the clients you work with as you build your portfolio, or you can hit the ground running by purchasing a rent roll which includes the types of properties you enjoy managing. 

It is possible to outsource basic administrative tasks to a virtual assistant, which will save you money and allow you to provide your clients with more competitive rates. Independent property managers also have the opportunity to grow their team with other specialists who share their vision. 

Investment property owners are becoming more aware of the benefits of independent property managers as a premium, dedicated service. It is evolving property management towards a stand alone industry and improving the work/life balance of those within it.

BDH Solutions are rent-roll agents with over 30 years experience in connecting the right vendor with the right purchaser. Download our information booklet on the new Victorian Minimum Living Standards Legislation