The Differences Between a Real Estate Agent, a Broker, and a Realtor

If you own or plan to own a rental property, you’ve likely encountered the terms real estate agent, broker, and realtor. These titles are often used interchangeably, but they represent distinct roles within the real estate industry. Understanding what each professional actually does can help you decide who to partner with at different stages of property ownership.

For rental property owners, the distinction matters. Buying or selling an investment property, negotiating contracts, ensuring legal compliance, and managing day-to-day operations all require different expertise. Knowing which professional handles which responsibilities can save time, reduce risk, and improve long-term returns. 

In this article, the team at MTD Property Management will break down what each does and how you can leverage them strategically to maximize your returns.

What Does a Real Estate Agent Do?

A real estate agent is a licensed professional who represents buyers and sellers during property transactions. Their primary role is to help clients buy or sell real estate efficiently and at favorable terms.

For rental property owners and investors, agents are often most useful for identifying potential investment properties, listing a property for sale, providing market insights on pricing and demand, and negotiating purchase or sale terms.

Agents handle tasks such as marketing properties, coordinating showings, presenting offers, negotiating contracts, and guiding transactions through closing. While agents play a hands-on role in deal execution, they work under the supervision of a licensed broker and cannot operate independently.

For landlords, agents are typically engaged before or after the rental phase, during acquisition or disposition, not for ongoing property operations.

What Does a Real Estate Broker Do?

A real estate broker has a higher level of authority and responsibility than an agent. Brokers can perform all the same functions as agents, but they also oversee transactions, ensure legal compliance, and may supervise agents within a brokerage.



From a rental property owner’s perspective, brokers are especially valuable when navigating complex or high-value transactions, structuring deals involving multiple properties, ensuring contracts comply with state and local laws, and resolving disputes or transactional issues.

Brokers can operate independently, manage escrow accounts, and assume legal responsibility for transactions conducted under their brokerage. Many brokerages are led by a principal or managing broker who oversees operations, compliance, and risk management.

If an investment deal is complicated or legally sensitive, working directly with a broker can provide an added layer of oversight and protection.

What Does a Realtor Do?

A realtor is a real estate professional, either an agent or a broker, who is a member of the National Association of Realtors. Realtor status is not a separate license, but a professional designation that comes with ethical and professional obligations.

Realtors perform the same transactional duties as agents and brokers, including buying, selling, and leasing properties, pricing and market analysis, and negotiation and contract support.

What distinguishes realtors is their commitment to the NAR Code of Ethics, which emphasizes transparency, professionalism, and client advocacy. Realtors often have access to enhanced market data, educational resources, and multiple listing services (MLS), which can be especially useful for investors evaluating opportunities.

For rental property owners, a realtor can be a strong partner during acquisitions or sales where ethical standards, accurate pricing, and market exposure are priorities.



How These Roles Fit Into Rental Property Ownership

While agents, brokers, and realtors are most commonly involved in buying and selling, they are not typically responsible for the ongoing management of rental properties. Once a property is purchased and placed into service as a rental, landlords usually require a different type of professional support.

This is where property managers come in.

A property management company focuses on the operational side of rental ownership, including tenant placement, rent collection, maintenance coordination, property inspections, budgeting, and legal compliance related to leasing. 

Unlike agents or brokers, who are transaction-focused, property managers provide long-term, hands-on oversight of your investment.

Bottom Line

Real estate agents, brokers, and realtors each serve important but different functions within the real estate ecosystem. Agents help execute property transactions, brokers provide higher-level oversight and legal accountability, and realtors bring an added commitment to ethical standards and professional resources. 

For rental property owners, the key is knowing when to use each professional.

If you’re buying or selling an investment property, an agent, broker, or realtor may be the right partner. But if you already own a rental and want help maximizing income, minimizing risk, and handling day-to-day operations, a property manager is essential.

If you’re looking for professional support with a rental property in Chicago, contact MTD Property Management. Our team helps landlords with everything from marketing and tenant screening to rent collection, maintenance coordination, and long-term financial performance so you can focus on growing your portfolio with confidence.