This article will break down salary prospects for property managers and the various factors that influence how much one can expect to earn. In addition, it will look at what the position of a property manager entails and the requirements to become one.
What does a property manager do?
A property manager ensures proper handling of all aspects of commercial, industrial or residential rental property management. Their role is overseeing the operations, maintenance, and administration of a property. Additionally, the property manager can supervise various employees, such as accounting, sales, maintenance, and grounds-keeping departments. Property managers are employed either directly by the property owner or indirectly through a contract with a property management firm. Their services offer the perfect solution for real estate investors who desire a more hands-off approach and prefer a professional managing their property. A property manager’s responsibilities include:
Establishing and collecting rent and other fees; Showing the property to prospective tenants; Advertising rentals and negotiating lease terms; Managing property finances by preparing reports, paying all necessary taxes and keeping records of rental payments; Resolving tenant complaints, settling disturbances, enforcing occupancy rules; Hiring and supervising staff employed on the property; Inspecting vacant units and planning renovations; Managing tenant screenings and evictions; Carrying out property valuations; Maintaining the property, ensuring regular upkeep of the building; Landscape maintenance; Securing the property and premises, instituting and enforcing preventative policies and procedures, responding to emergencies.
Educational requirements
While property managers are generally not required any particular educational background or credentials (except for a high school diploma or equivalent GED), in today’s competitive job market, you might want to consider obtaining:
A real estate license (often required by state law); More specialised certifications such as Certified Manager of Community Associations, Residential Management Professional (RMP®), Certified Property Manager (CPM), or Certified Apartment Manager (CAM); A Bachelor’s degree in business administration, real estate, accounting, public administration, or finance.
Essential skills/qualifications:
Outstanding knowledge of the property and real estate market; Strong leadership and communication skills; Teamwork; First-class customer service; Technical property know-how; Adequate computer skills; Administrative and managerial skills; Being up-to-date with local landlord-tenant laws and regulations.
Workplace:
Self-employed or working for a property management company; Spending considerable amounts of time out of the office, investigating problems reported by residents or showing/checking rental units; Live close by or at the apartment complexes where they work, so they can handle emergencies even when off duty.
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Factors determining a property manager’s salary
1. Property type
One of the most critical factors affecting your salary is the type of real estate property you manage. There are four types of property management: residential, commercial, industrial, and particular purpose, and salaries vary notably depending on which kind you choose to work for. Residential property managers make an average of $48,583 per year, with salaries typically ranging between $36,000 to $59,000. Some high-earning residential property managers pocket $70,000 annually. On the other hand, commercial property managers make an average annual income of $64,373, with most commercial property managers making between $50,500 to $75,500. However, some high earners are making $87,000 or even six-figures of yearly income.
2. Level of education
The minimum educational requirement for managing rental properties is a high school diploma. Nevertheless, since various duties are related to marketing, finance and business planning, employers prefer hiring those with extra qualifications. Therefore, obtaining a Bachelor’s or Masters degree can significantly better your chances at obtaining a much heftier paycheck. Worth considering, though, is the student debt you will indisputably collect and whether it will even out the raise in salary. Alternatively, if higher education is not the route you’re willing to take, getting certified by the state is one way of showing prospective employers that you are a professional that understands the market and is more knowledgeable than the average property manager. It is worth considering the various certifications and formal training programs on offer; this will set you apart and help you grow your career.
3. Location
The national average property manager salary is approximately $51,000, with New York, Los Angles and Atlanta leading with the highest median salaries. However, it is crucial to note that a higher paycheck will often mean higher living costs, especially in metropolitan areas.
4. Experience
Generally, the property manager’s salary will increase with years of experience and continuous employment.
Salary by experience level
Entry-level (less than 1-year experience)
An entry-level property manager can expect to earn an average total salary (includes tips, bonus and overtime pay) of $41,491.
Early-career (1-4 years of experience)
An early-level property manager can expect to earn an average total salary (includes tips, bonus and overtime pay) of $46,744.
Mid-career (5-9 years of experience)
A mid-level property manager can expect to earn an average total salary (includes tips, bonus and overtime pay) of $51,624.
Experienced (10-19 years of experience)
An experienced property manager can expect to earn an average total salary (includes tips, bonus and overtime pay) of $56,024.
Late-career (20+ years of experience)
In their late career, a property manager can expect to earn an average total salary (includes tips, bonus and overtime pay) of $59,535.
Perks and benefits of the job
On top of a fair salary, a property manager can expect various perks, including:
Health, vision and dental insurance; 401 (k) retirement savings plan; Paid vacation; Disability insurance; Flexible spending account; Employee assistance programme; AD&D insurance; Flexible spending account; Commuter assistance.
In conclusion
To sum up, those interested in becoming a property manager should always consider the various factors in salary. While years of experience promise a steady growth in pay, the main thing to think about is the type of property you would like to sell, with commercial property managers guaranteed a much heftier cash flow. Essential to remember as well that while metropolitan areas might offer beefier pay, the cost of living often cancels that out, making relocation something to review rigorously.
