Posted by Working with a realtor who also manages properties? Learn how to navigate this dual-role relationship for maximum benefit while protecting your interests as a property owner or tenant. I’ll never forget my first encounter with this hybrid professional. Fresh off signing a lease for my new apartment, my property manager handed me her real estate card with a casual, “When you’re ready to buy, let’s talk.” At the time, it seemed convenient. Six months later, when she began showing me listings while simultaneously processing my maintenance requests, I realized the complex dance of working with someone straddling both sides of the real estate world.
The Unique Value of Dual Expertise
These professionals operate at the intersection of two distinct but related worlds. As property managers, they live in the day-to-day realities of maintenance headaches, tenant screenings, and rent collection dramas. As realtors, they navigate the fast-paced world of listings, showings, and sales negotiations. This dual perspective gives them insights most single-focus professionals simply can’t match.
I’ve watched these hybrids perform minor miracles. One transformed a tired rental property into a stunning flip by applying her property manager’s eye for tenant complaints to identify the most valuable upgrades. Another accurately priced a listing within hours because he knew exactly what rental rates the neighborhood could support, knowledge gained from managing twelve nearby properties. Their hands-on experience with what makes tenants stay (or flee) often translates to smarter investment advice for buyers and sellers alike.
The Inherent Tensions You Can’t Ignore
Yet this dual role inevitably creates friction points that require careful navigation. Last year, one of my investor clients discovered his property manager/realtor had been gently but persistently encouraging long-term tenants to consider buying their rentals through her brokerage, naturally. Another found his manager consistently recommending sale options over long-term holding strategies, despite the property’s strong cash flow.
The solution lies in proactive, transparent communication. Savvy clients ask direct questions about how their professional balances these competing interests. How do they prioritize existing management clients versus new sales prospects? What’s their policy about showing managed properties to their buyer clients? Do they fully disclose their dual role in all transactions? The best practitioners welcome these conversations and have clear systems to maintain ethical boundaries, often maintaining separate teams for management and sales functions.
When Tenants Become Buyers
For renters, this arrangement presents unique opportunities and potential pitfalls. I’ve seen beautifully smooth transitions where long-term tenants, already familiar with their manager’s work style, seamlessly become first-time homebuyers with the same professional’s guidance. The existing relationship means the realtor already understands their lifestyle needs and financial situation intimately.
But I’ve also witnessed uncomfortable scenarios where tenants felt pressured to use their property manager as a realtor, or where maintenance requests mysteriously slowed after a tenant declined buying services. The healthiest relationships establish clear boundaries from the beginning, with both parties understanding that property management and real estate services remain separate engagements requiring separate agreements.
For Property Investors
Investors stand to gain particular advantages from this dual-role relationship when structured correctly. A skilled professional can provide holistic advice about when to hold for rental income versus sell for capital gains, drawing on both sides of their expertise. I’ve seen them identify the perfect moment to convert a rental property to a sale based on shifting neighborhood dynamics they spotted through their management work.
However, investors should insist on regular portfolio reviews that separate the management and sales analyses. One of my most successful clients requires her hybrid professional to wear only one hat at a time during these meetings, first reviewing properties strictly as a manager, then later revisiting them as a realtor. This enforced separation of roles leads to more balanced recommendations.
The Contractual Safeguards You Need
Whether you’re a tenant, buyer, or investor, written agreements should clearly delineate which hat your professional is wearing at any given time. Management agreements shouldn’t automatically convert to listing agreements. Tenant relationships shouldn’t create assumed buyer representation. The clearest arrangements specify different compensation structures and termination clauses for each service.
I always recommend a cooling-off period between management and representation agreements. One investor client implements a 90-day waiting period before his property manager can list any of his properties, ensuring sales decisions aren’t made under the influence of immediate commission incentives.
Recognizing When It Works
The best dual-role professionals demonstrate consistent transparency about their competing interests. They voluntarily disclose how many properties they both manage and have listed in the same building. They maintain separate communication channels and teams for each function. Most importantly, they acknowledge the inherent conflicts rather than pretending they don’t exist.
When this balance is struck, the benefits are real. Tenants gain a trusted guide for their eventual home purchase. Sellers receive pricing advice grounded in rental market realities. Investors get a complete picture of each property’s potential. But achieving this harmony requires vigilance from all parties to ensure one role never unfairly advantages the other.
The most successful relationships with these hybrid professionals come from recognizing both the unique value and inherent tensions of their dual roles. With clear boundaries, open communication, and proper documentation, you can harness their complete expertise while protecting your own interests, whether you’re renting, buying, or building an investment portfolio.
References
PestShare. (2024, November 20). Can a realtor be a property manager? Exploring both roles. https://www.pestshare.com/realtor-be-a-property-manager/
Colorado Division of Real Estate. (2022). Commission Position 22 – Conflicts of Interest. https://dre.colorado.gov/sites/dre/files/documents/Commission%20Position%2022%20-%20Conflicts%20of%20Interest.pdf
Brady Solicitors. (n.d.). Managing agents – how to avoid a conflict of interest. https://www.bradysolicitors.com/brady-blog/managing-agents-conflicts/
Authority Property Management. (n.d.). Conflict of interest: Balancing sales and property management responsibilities. https://www.authoritypm.com/conflict-of-interest-balancing-sales-and-property-management-responsibilities