Risk Management Strategies for Real Estate Agents

When it comes to property management, it is critical to implement a risk management component. Developing and incorporating strong protective practices into your business will make a significant impact in reducing liability and managing ligation risks. The Rubin Group protects your property to keep your business running, but here are some recommendations to kick off into utilizing simple protective measures and begin managing risks.

Consistent Standard Procedures

It is important to be consistent with each and every client and prospective client. Be sure to treat each client equally while using the same procedures throughout the process. Honestly and fairness is always a good rule of thumb to assist in eliminating risks for real estate agents. Any deviations on your part could lead to a huge mess. Develop and implement consistent standard procedures from the beginning within every client relationship. Your consistency will only make it easier on you.

Keeping Your Records

Document everything! Even the things that may seem minuscule should not be forgotten. Log your notes, all communication, and milestones. If you encounter challenging conversations, it may be particularly crucial to report every fact and event during that time. Create a folder to keep all transactions, emails, notes, and correspondences for your reference. This could dramatically help you out later on. It would be smart to create a checklist to stay on top of tasks throughout transactions, including any due diligence and heavy deadlines.

Home Inspection and Warranty

Encourage your clients to get a home inspection and a home warranty. Create a list of vendors, contractors, attorneys, lenders, home inspectors, and home warranty companies that you can recommend to them. You may want to create a disclosure with these companies and have clients sign for the acknowledgements. Help manage risks by being the one to disclose and provide the sources. Never do the diagnosing yourself. If they choose not to obtain an inspection or warranty, be sure to have clients sign a written waiver. Keep in mind that it is your duty to educate and set proper expectations, such as explaining the pros and cons of a short sale.

Communication is Key 

Communicate with all individuals involved in the transaction. Stay up on all emails and phone calls. Punctuality and remaining prompt on your responses will benefit you in the long run. Your communication should be often and consistent, and your clients should feel like you are a dependable agent. Do not underestimate the power of persistent communication. Strong communication with all parties is a great risk management strategy because it dramatically reduces the likelihood of a misunderstanding down the line.

About The Rubin Group

Based in New York, The Rubin Group provides insurance in most of the 50 states. Our full-service insurance brokerage provides insurance and risk management services to individuals in all income brackets and businesses of all sizes and types. We understand that every client has unique coverage requirements, and we are passionate about providing the ideal individualized coverage for each customer. Each member of our team takes the time to truly understand your situation, the particular risks you anticipate – and the very real risks you’ve not yet contemplated. For all of your insurance needs, contact us at The Rubin Group!