Property management can be a lucrative career for the right person. According to GlobeNewswire, the global property management market is expected to reach $37.25 billion by 2029.
Who benefits? The property managers, landlords, and administrators who own or lease all that real estate. To pursue this in-demand career, potential property managers need several things, including local accreditation, a knowledge of the ever-changing real estate market, and tools like property management software.
A property manager owns or leases real estate which they then rent out to tenants. Some personally own their property, while others work for real estate agencies.
Property managers are responsible for coordinating between tenants and owners on issues such as lease agreements, rent collection, and maintenance. Some alternate titles include landlord or property administrator.
The main day-to-day tasks a property manager must complete include:
There are some differences between residential and commercial property management. Residential property managers are more likely to be on-call for emergencies, since inhabitants can be home anytime. A commercial property usually requires a manager to remain onsite during work hours.
According to Indeed, the average base salary for a property manager is $55,808 per year. The amount of money a property manager makes depends on several factors, including if they are independent or work for an agency. Generally, their earning potential is determined by:
The more real estate a manager oversees, the more expenses there are to maintain the property. However, there’s also more potential profit.
An independent manager has more control over how much they charge in rent, though they don’t enjoy the safety net of a guaranteed salary.
To succeed as a property manager, the following skills are key:
The skillset for commercial and residential property managers is largely the same. However, the main differences come from the amount of properties being managed. For example, a landlord who owns a single duplex won’t need nearly the same level of organization as the manager of a commercial property with dozens of tenants.
Only a high school degree is required for work in real estate, though a college degree is recommended. Coursework completed through the Institute of Real Estate Management can also provide useful credentials.
For those seeking a college degree, majors in business administration, finance/accounting, and property management (if available) are ideal.
The exact accreditation necessary for a real estate manager varies based on location. Several states require potential property managers to pass a real estate licensing exam, even if they do not plan to sell property.
According to All Property Management, almost every state has a minimum requirement of a property management or real estate broker license in order to work with rental properties. However, some states have no licensing requirements:
To get these accreditations, potential managers need to be at least 18. However, some states have a minimum age of 21. There may also be a criminal background check.
All Property Management provides a full list of state requirements for property managers. Fortunately, many states offer real estate license reciprocity with neighboring states.
The terminology around property managers and real estate agents can be confusing. Here are some basic differences between these jobs:
Real estate agents and brokers receive commission after a sale is completed. Unlike property managers, they aren’t involved in the upkeep or maintenance of a property. Learn what different states require to become a real estate agent or broker.
While there is a lot of work to become a property manager, there are many tools available to make the job easier. Both commercial and residential property managers can use software to streamline daily tasks.
Property management software provides the most benefits for those with real estate careers. These solutions can automate rent collection using payment portals, provide hubs for maintenance requests, and track prospects in databases. The top 5 benefits of property management software are:
Lease accounting software is also popular with property managers since it can automatically track tenant payments, lease renewals, and contract information, all while keeping financial records compliant with Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) standards.
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