What is the real purpose of real estate agencies? In what way these agnecies work as a medium between a tenant the property owner? Why do people deal with agencies while they could just rent their own homes by themselves? Do these agencies take a percentage from the rental after getting control over the property?
Another is to find buyers for a property that one wishes to sell. One can do either of those oneself, but most people either don't want the hassle or don't want to learn how to. The fact is that finding a buyer can be very difficult (gentleman up the street from here has a very nice house that has been for sale for the past 2-3 years.) And, yes, in bother cases, the agency gets a piece of the action, a percentage of the money paid.
To sell homes and to find good tenants to rent homes out and yes the agency is paid a commission for the sale of the home and for getting a home rented too. The Real Estate Agent get a percentage of the commission.
Several real estate entrepreneurs live quite far away from your property they own. They hire local administrators to deal with the day today procedures of residential real estate like preservation and demonstrating available units. The tenants never get the manager's contact info, and so the owner does not need to offer specifically with tenants. The administration business transmits rent and repair costs to the owner, and manages everything.
Many real estate owners live very far away from the real estate they own. They hire local managers to handle the day to day operations of residential real estate like maintenance and showing available units. The tenants never receive the owner's contact information, and so the owner does not have to deal directly with tenants. The management company handles everything, and submits repair bills and rent to the owner. Management companies traditionally require payment of the equivalent of 1 months rent per year to manage the property. Owners can manage their own property (I do), but that can take a lot of time, and dealing with tenants is not always pleasant. It is worth the money to some owners to let someone else do it. I hope this helps
Many people don't have the time to list their own properties, screen all the applicants, run credit checks, be avaialable to show the properties, nor are they good salespeople so they are many times not in the best position to do this themselves, and they leave it to professionals.
