Careers in Property Management
Real estate owners commonly employ professional property managers -- either directly or through third party management firms. Property managers are charged with the day-to-day management of the real estate asset. They ensure that: tenants are satisfied, the building is in good condition, rent is paid and that rents reflect market conditions. Property management provides a general introduction to real estate. You'll learn how to efficiently operate a real estate asset in this capacity. Property managers deal with issues relating to leasing, construction, tenant relations and market analysis.
The property manager plays a crucial role in expense control as the owner relies on him to manage any and all operating expenses at the building. For instance, if there is construction work at the building, the property manager supervises the project, keeps close tabs on the progress and makes sure that it doesn't go over budget.
Property management also requires good interpersonal and analytical skills because tenants sometimes can be difficult and expect things to be resolved immediately. Also, while leasing agents do much of the lease negotiations, property managers are involved in the process, therefore, a salesperson's license is required.
Property management is on the operational side of real estate. A good manager can save an owner a great deal of money by operating the asset efficiently and keeping the tenants happy.On the Job
The common entry-level point for this field is assistant property manager (APM). While, it helps to have some real estate experience or a college education these aren't always prerequisites. APMs spend a good deal of the day interacting with people, fielding calls from tenants and owners. They're also charged with orchestrating any necessary repairs and dealing with vendors. APMs also have the unpleasant task of making delinquency calls to tenants when they don't pay their rents. There is also a lot of administrative work such as assembling reports that the property manager writes for owners as well as annual bid packages for any property work.
APMs report to a property manager (PM). PMs deal directly with the owner on all issues And are ultimately responsible for the day-to-day performance of the asset. The owner relies on them to maximize the real estate asset's net operating income. PMs report to a regional property manager (RPM). RPMs are in charge of an entire region interact with multiple owners. In a scenario where an owner has multiple properties, the RPM would be the point of contact. They're expected to bring in business and negotiate service contracts.
A typical day in property management may involve visiting one of your properties, and talking almost every hour with the owner, tenants or vendors. You'll probably also be making sure that your accounts receivable are in order. Given that many owners expect timely reporting, you'll also be gathering valuable market information that make up reports.
These may include rental rates in competitive buildings and lease rollover reports -- which detail which leases are coming due at your property. Other reports include delinquency, rent patterns and operations, which detail the physical condition of the property and the state of the budget.Compensation
Careers in property management are generally salaried positions that include benefits. An assistant property manager should expect to make $30,000-$35,000 per year with a bonus based on individual performance and that of the asset(s). Property managers typically make a base salary of $70,000 per year and can expect an annual bonus. At the assets where property managers handle the lease renewals, owners sometimes pay commissions for these. This is not the norm but can be negotiated in the hiring package.