If you’re a real estate investor who doesn’t have the time to be a property manager than you’ll have to hire a company or individual to handle the duties of a property manager for you. That’s because property managers are indispensable! They handle such duties as finding and screening tenants, property maintenance, etc. Luckily, the salary you pay to your property manager is tax deductible. That’s good news for owners of apartment complexes, malls, and offices since these are types of real estate often run by property managers. If you think you can do without a property manager or that their jobs are easy you’re about to find out just how wrong you are.
What is a Property Manager?
To begin with, plenty of real estate investors hire property managers for many reasons. You may just not want to be so involved in the day-to-day operations of your real estate investment or you may not have the time because you’re invested in so many properties. Regardless of your reasons, the property manager can run building maintenance, handle light repairs and cleaning, resolve any complaints or concerns occupants may have, take care of getting units filled, and tackle rent collection.
Hiring a property manager lightens the load significantly for the investor, but it may come at the cost of tenant relations simply by virtue of the fact that the property manager is an employee rather than the direct investor. However, this is an assumption that can be easily discarded since there are plenty of employees that are passionate about their roles despite not being the proprietor of the business that employs them. Plus, if a real estate investor intends to own multiple properties it is only with the help of property managers that such an undertaking is possible.
What are Property Managers Responsibilities and Duties?
When it comes to rent, the property manager would be responsible for setting rent at a level that will entice potential occupants. The property manager would also be responsible for collecting and adjusting rent. Additionally, the property manager would be the one who finds and screens renters. The lease would be the property manager’s responsibility as well. The property manager would be the point of contact for complaints, emergencies, move outs, and evictions. As can be expected given the latter, the property manager would handle maintenance and repairs.
Since the property manager has so much to take care of they would have to be knowledgeable of landlord-tenant law. And since the workload is so high, the property manager may have to hire employees to make things more manageable. This may be the case even if the property being managed is vacant. Budgets, records, and taxes would fall under the purview of the property manager as well.
What are Property Management Career Pros and Cons?
Since being property manager is such an important role, there are always opportunities for employment. This is the case not only in the United States but globally as well. This is simultaneously a pro and con of property management as a career since it’s a very demanding position to occupy. It’s also a job that may require odd hours and working weekends.
Dealing with tenants is a particularly challenging part of being a property manager (as is the case with any job that requires the collection of monies, the management of properties, and the burden of granting individuals the opportunity to move in). In order to succeed in this position, the property manager will need to know how to get people interested in becoming occupants.
How Do You Become a Property Manager?
While it’s not necessary, many companies and real estate investors will want a property manager with a bachelor’s degree in fields such as finance, business administration, real estate, accounting, or public administration. Although, having vocational training or a real estate license may suffice for some. In some cases, online courses or learning on-the-job may suffice. The latter may mean starting with an entry-level job, but dedication will lead one to job growth.
Specialized certifications may improve one’s chances, such as becoming a certified manager of community associations or a certified apartment manager. These certifications require taking classes and passing exams. However, being a successful property manager doesn’t just stop once one’s hired and working; it’s a job that requires keeping up with best practices, which can be accomplished by engaging other property managers and reading blogs and books.
Do You Need a License to be a Property Manager?
Becoming a property manager requires meeting licensing requirements that vary from state to state, as well as a result of the type of property being managed. In most states a property manager needs to have a real estate license because there’s so much overlap between the duties of a property manager and the duties of a real estate agent. And since what it takes to get a real estate license also varies from state to state, what stipulations one has to meet in order to be a property manager will vary based on where one resides.
How Does a Property Manager Get Paid?
A property manager is paid by the real estate investor or by a company.
How Much Does a Property Manager Make Per Year?
Property managers are handsomely compensated for their work. In 2019, according to Salary.com, property managers make between $84,403 and $111,859, with the average being $97,224. Although, a residential property manager may make less ($50,448 to $65,35), while a certified property manager with 10 years experience has an average salary exceeding $113,000.
Why is Property Management Interesting?
Becoming a successful property manager requires such a wide variety of skills and cultivates such significant knowledge of the ins and outs of the real estate market that it may pave the way to becoming a real estate investor. Dealing with people, logistics, learning the laws; being a property manager is a constantly evolving occupation that will provide enough challenges and rewards to maintain interest for years!