When Your Real Estate Team Isn’t Working But You Don’t Know Why
Team dissatisfaction in real estate typically stems from one of two structural breakdowns: either the principal agent is not equipped to manage the people they hired, or a team member joined a structure that isn’t the right fit for them. Both situations require different approaches, but the common root cause is often the same: the principal agent who built the team was never trained to run one effectively.
THE PRINCIPAL AGENT WHO DOESN’T KNOW WHAT THEIR TEAM ACTUALLY DOES
A principal agent who complains about underperformance without clear role definitions is often creating the problem themselves. These agents excel at closing deals and building client relationships, but they may not know how to set expectations or hold people accountable. The first conversation that needs to happen is not about firing anyone, it’s about whether the principal agent is willing to invest time and structure into the team.
If the principal agent is unwilling to change how they operate, the team model may not be right for them. Some agents function better with a single assistant instead of a full team. Others thrive by partnering with another agent rather than taking on leadership responsibilities. The decision comes down to whether the principal agent has the bandwidth and commitment to define roles, train team members, set expectations, and manage accountability. Without that willingness, the team will continue to underperform regardless of who is on it.
When the principal agent is willing to invest, the next step is diagnosing where the breakdown occurs. Sometimes team members are splitting time across multiple jobs or rely on other sources of income, so real estate is not their primary focus. Other times, they may lack the communication skills or organizational habits required to operate independently with clients. In these scenarios, a fractional COO can step in to define roles, create accountability systems, and act as the operational manager while the principal agent learns to assume that function themselves. The ultimate goal is not permanent dependence on outside management, but building a structure the principal agent can eventually run or one that supports a future full-time hire.
THE TEAM MEMBER WHO KNOWS THEY’RE IN THE WRONG PLACE
A team member who is unhappy often struggles to articulate their needs or lacks the confidence to do so. They may recognize that they are not growing or earning enough, but they don’t know how to start the conversation with the principal agent. Some agreements include non-compete clauses or internal restrictions that make transfers more complicated, and in some cases the team member may need to leave the brokerage entirely to find a better fit.
If remaining in the brokerage is an option, the next step is facilitating communication about expectations and needs. As a consultant, I can help structure this conversation, as the team member may not know how to navigate it alone. Often, the discomfort of addressing misalignment is what keeps people stuck in underperforming structures. Once the team member communicates their needs, the principal agent must decide whether they are willing to adjust their support.
If the principal agent is unwilling to make changes, the solution is not to force alignment. Instead, the team member should be guided toward a better fit, whether that means transitioning into a different role on the same team, moving to another team with a principal agent whose style and investment level matches their needs, or joining a different brokerage entirely. Leaving a misaligned structure is often the best way to preserve growth and performance potential.
PERSONALITY FIT VS. SYSTEMS
Dissatisfaction is not always about unclear roles or lack of systems. Sometimes a personality mismatch is too significant to fix even with improved processes. In these cases, my role as a fractional COO is not to mediate disputes or persuade individuals to remain in a broken setup. My role is to clarify each party’s goals, assess whether the current structure can meet them, and guide everyone toward a setup that maximizes potential. That might mean recommending that we restructure the team, dissolve it, or reposition team members into roles that better fit their strengths. The ultimate outcome depends on the people involved and their willingness to adapt.
FREQUENTLY ASKED QUESTIONS
Q: How do I know if my team structure is the problem or if I just hired the wrong people?
A: If roles are unclear, expectations are undefined, and accountability systems are missing, the structure is likely the issue. A team member cannot be expected to perform well in a role that was never properly defined. Document responsibilities and define what success looks like in each role. If performance does not improve after that, then personnel may be the issue.
Q: When should a principal agent hire a full-time operations manager instead of using a fractional COO?
A: A full-time operations manager makes sense when the team generates sufficient revenue to support the role, when there are enough demands on a day-to-day basis to warrant that level of support, and when the operational structure is in place. My role is to act as a fractional Chief of Staff / Director of Operations in order to help set up the foundation for success in a strategic, systematic way and can help ensure alignment for a future operations manager to take over, or work with the agents directly depending on their needs.
