‘Is property management a good career?’ This is a question many people are asking themselves as 2019 comes to an end. If you’ve been wondering how to become a property manager and if this is even a good idea, read on.
So, What Is Property Management?
Investment property management involves overseeing and managing the day-to-day operations and maintenance of one or more rental properties. The rental properties could be condos, single family homes, multi family homes, apartments or even retail complexes. The responsibilities of a property manager include the following:
- Advertising the rental property
- Screening potential tenants
- Handling all leases, contracts, and official paperwork related to the rental property
- Hiring and management of maintenance and repair staff
- Acting as a liaison between tenants and income property owners
- Following up on late rental payments according to the lease agreement
Average Property Manager Salary
A property manager’s salary could be determined by the number of rental properties they manage, as well as the value of those properties. The salary could also be influenced by the candidate’s educational qualifications, certifications, and experience. According to a recent study done by Indeed, the average salary for a property manager in the United States ranges from $14,000 to $105,000, with the average being $46,143.
The Pros and Cons of Being a Property Manager
Here are some of the pros and cons of being a property manager to help you decide if this is the career path for you:
Pro: It’s a growing industry
There is a rising demand for rental properties in most housing markets around the world. Take the Nashville real estate market, for example, where nearly half of the population lives in rental properties. As a result, there is also a growing demand for property managers. This means that property managers will always have opportunities to explore.
Con: Difficult tenants and clients
Some tenants, contractors, and property owners can be very difficult to handle. For instance, a tenant defaulting on rent might refuse to move out of a rental property. This is why property management can be a very stressful career at times.
Pro: You will not sit at a desk all day
If you don’t like being restricted to an office or cubicle for 8 hours a day, then a property management career could be right for you. This job involves frequent visits to investment properties and meetings with landlords, contractors, and tenants.
Con: Difficulty finding the right tenants
Finding the right tenants for the rental properties you manage can be very difficult, especially in a real estate market that is flooded with rentals. As a result, you might find yourself facing long periods of vacancy which will hurt your bottom line and eventually your company’s reputation if it persists.
Related: What Is the Ideal Type of Tenant for Your Rental Property?
Pro: You will not be stuck in a rut
If at some point, you feel dissatisfied with being a property manager, you can always switch to a different real estate career. The real estate industry is continually evolving, thus creating numerous opportunities for career advancement. In addition, the skills learned in residential property management can also be transferred to other industries that are not related to real estate.
Con: Rental properties require constant attention
Many people that want to pursue a career in property management don’t realize that this is a full-time job. Whether you work for a property management company or you’re self-employed, you will often face emergencies that need to be dealt with immediately. Having to work in the evenings and on weekends will mean sacrificing time with your family or friends.
How to Start Your Career in Property Management:
Do the pros outweigh the cons for you? If you are wondering how to start a career in property management, here are some factors to consider:
Education Requirements
The education requirements for property managers vary from one company and location to another. In most cases, however, companies are looking for people that have an undergraduate degree in property management, real estate, or a related field such as finance and business administration. Property management degrees cover topics such as risk management, financing, leasing, and customer service.
Training and Certifications
Besides formal education qualifications, most property management companies will also want candidates that have an accredited certification in real estate. Therefore, you might want to consider becoming an Accredited Residential Manager (ARM) or a Certified Property Manager (CPM). Another option is getting a certification from the Institute of Real Estate Management (IREM). This professional property management certificate requires the completion of multiple courses and several years of related work experience. Students that already have related undergraduate degrees will be eligible for exemption from select courses.
Skill Requirements
Property management is a very involving job that requires a very diverse skill set. Here are some of the most crucial skills for property managers:
- Communication – Property managers are always engaging in verbal and written communication with tenants, landlords, and contractors, among others. Therefore, having the ability to communicate effectively with all these stakeholders is important for a property manager’s success.
- Patience – Dealing with all sorts of demands from different stakeholders can be very nerve-wracking. This is why property managers should always have a reassuring and calm disposition.
- Attention to detail – Property managers must exercise acute attention to detail while juggling their different responsibilities. This is especially crucial when handling legal documents such as leases and contracts.
- Organization – Quite often, you’ll find yourself handling property management marketing, lease negotiation, lease termination, and maintenance tasks for several tenants at the same time. This requires exceptional organization skills, time management, and multi-tasking.
- Bookkeeping – At times, a property manager will be required to handle financial tasks such as receiving and processing rent payments, filing taxes, fining tenants for late payment, keeping income and expense records, and creating a financial report for the rental property owner.
Related: 7 Best Property Management Tools for 2019
Closing Thoughts
So, is property management a good career? The points listed above will help you decide whether becoming a property manager is the right thing for you. If you decide to pursue it, be prepared to plunge yourself completely into the career. You will not succeed with a halfhearted attitude.
When it comes to property management, you need to do your research to find out what the typical requirements are for such jobs in your area. Go ahead and enroll for the necessary degrees or certifications that will prepare you for a property management career.
Ready to get started? Learn what Mashboard can do for property managers.
Related: 10 Tips to Succeed as a Residential Property Manager