Evaluate the potential effects of the Recession on Property Management Companies and Estate Agents - Essay Example

First if the consumers are confident enough about the future of an economy, they will buy more. So production will increase in order to satisfy the excess demand. If the investors have faith that the trend will prolong, they will be investing more and more in the market leading to an upward rising stock market. All these combinations will lead to an upward spiral causing an expansion of the economy. But any booming economy is destined to fall. If the consumers are not confident enough, they will demand less, leading to a lower production.

As the production level falls, the investors will be apprehensive about the market leading to a lower investment and a crash in the market. Compared to other industries/sectors the impact of recession over property management is different. It not only affects the companies or agencies related to this business but also impacts other financial organizations that are associated with it. The real estate economy is a huge part which is integrated with the general business economy. Like all other sectors of the business economy, this sector also gets impacted by the recession.

If there is any downturn in the general business economy, people will not invest in the properties and real estates. When people can not purchase house, there will be an increase on the demand for rented houses. The property management companies and the estate agents can help in these cases. The companies related to operation of property have diverse work to do. They range from rent collection to maintenances, payment of taxes to providing utilities and insurances. But property management does not always mean managing of real estate properties.

They may also be responsible for managing capitalized assets. Estate agents are people or businesses who are related to selling and providing rents of the homes, lands and buildings. They are mainly related to the