Every career has its ups and downs. What’s important is that before taking on any new career, you fully understand what you’re getting into. Becoming a property manager could be very rewarding, but as we said, any job has it’s good and bad.
Being a property manager means taking on the role of middleman between landlord/property owner and tenants. When rental property owners don’t have the time, ability, or resources to be managing rental properties, they hire professionals. Some property manager duties are handling tenants, collecting rent, negotiating leases, maintaining the building, and increasing property value, among other things.
Is a property management career the right one for you? Let’s list the pros and cons to find out.
Pro: It’s a High Growth Industry
Becoming a property manager in virtually any housing market is a good bet as this is a real estate career in high demand. As investment in rental properties across the US real estate market has been increasing substantially, rental property managers have a lot of opportunities and clients. As rental demand increases across the nation, demand for residential property managers also increases. Property management is actually a strong career even on a global scale. According to this report, the global property management market is expected to go up from its 2018 value of $14.47 billion to $22.04 billion in 2023. A compound annual growth rate of 8.8% is all anyone looking for reassurance on becoming a property manager needs.
Related: Construction and Property Management: 5 Tech Solutions That Are Taking the Industries Forward
Con: Managing a Rental Property Requires Constant Attention
Becoming a property manager is a full-time job and some people go into this career not fully realizing this. Every property differs from the other. Tenant issues range depending on the tenant. Whether you’re self-employed or work for a property management company, there is a long list of tasks. Be prepared for off-duty tasks or dealing with emergencies as well.
The point is, there isn’t really a set routine/schedule for how to manage rental properties that you can apply every day for every property. For some, having different things to do every day is a pro in and of itself. If you want to learn property management the right way, you’re going to be learning throughout your entire property managing career. Knowledge of the job comes from experience.
Pro: The Property Manager Salary
Yes, it’s not an easy task, but becoming a property manager sounds like even more of a good idea when the salary enters the conversation. Learn the steps to becoming a property manager fast, as this isn’t a payday you want to miss out on.
According to salary.com, the average property manager salary in the US market is $97,224. Not everyone in this industry makes this figure as the salary can go up or down based on location, property type/size, experience, education level, and other factors. But the range for 2019 falls between $84,403 and $111,859. Keep in mind that these numbers are reflecting all types of property managers in the US real estate market. Residential property managers have a salary which ranges between $50,448 and $65,351. A certified property manager, with about 10 years of experience, has an average salary exceeding $113,000.
Related: How Much Do Property Managers Make?
Con: The Task of Taking on Tenants and Finding Clients
If you’re lucky, you won’t be faced with the unpleasant task of having to remind tenants to pay rent or serve up eviction notices. Unfortunately, becoming a property manager comes with the high possibility of dealing with bad tenants. To minimize the damage bad tenants can do to the rental units you’re managing, you should study the rental laws in your city well. Some states are quite landlord-friendly and make the eviction process quick and easy for property owners/managers to get their rights.
However, that isn’t all when it comes to the difficult tasks of becoming a property manager. You will also need to generate property management leads. Property managers are responsible for attracting property owners to their services. This isn’t an easy thing to do, as you don’t want to attract the wrong type of client. Lead generation is especially important for those owning a property management company. Do you want to succeed as a residential property manager? You’re going to need to brush up on some of today’s most successful lead generation strategies.
Related: 10 Tips to Succeed as a Residential Property Manager
Pro: Real Estate Skills Like No Other
Some real estate investors have never even managed one of their own investment properties. Handing off the work to a property manager takes away half the skill development that comes with being an active member of the real estate market. The tasks that come with managing rental properties give you a big advantage over everyone else in the market. Property managers know first-hand how different factors affect an investment property’s performance. By keeping track of the ins and outs that come with each rental property, property managers can really be ahead of the game.
Here are a couple of skills which might seem small, but could really go a long way:
- Spotting Opportunity: Rental managers deal with tenants so they know what tenants are looking for. You’re managing multiple properties so you know the performance rates for a market. When real estate opportunities arise, you’ll be the first to spot them because no one knows the market better than you do.
- Time Management: With all the different tasks to do, it becomes a natural instinct for property managers to manage their time and prioritize their work well. It’s the only way things can run smoothly.
- Investment Evaluation: Evaluating an investment property isn’t the easiest thing to do. While property managers aren’t in the field of real estate investment, they have the skills to be. Just the simple knowledge of which rental improvements can justify higher rents is one form of the property analysis skills you can get.
Are you serious about taking on this new career in real estate and becoming a property manager? Do it the right way and use the right resources to grow your business. Mashboard is the perfect tool for property managers searching for new properties for their clients. Learn more here.