Investing in real estate offers a huge opportunity to make money, but it can be difficult if you don’t have the money and time available. Fortunately, many investors may have the cash but not the time to run their properties, so they rely on local property managers to maintain their investments. This is where the opportunity lies for a career in property management.
If you’re considering the property management field, the benefits described below may convince you to join this exciting trade.
Financial Rewards Without Risk
Investing in rental properties can be incredibly profitable, but many challenges can make you lose money, too. When you’re a property manager, you have the stability you don’t have as a landlord. You always know you have money coming in.
Property managers are compensated for the work they do and not for the value of the property. So, their paycheck isn’t affected by anything with the rental property that affects the landlord’s bottom line.
The property owner must regularly weigh whether they should sell it or keep going, and repairs are a constant concern. But property managers know that they’ll always get paid as long as they do their job.
Property management is relatively unstructured and lacks the oversight that many workers have with bosses and supervisors breathing down their necks. This makes the work less repetitive, and you can do your own thing, as long as the work is completed.
The tasks and issues change every day in property management, and you always need to hustle from one property to another. If you don’t like sitting in a cubicle all day, working in property management can give you a feeling of independence.
High Growth Field
Being a property manager in most cities is a good choice because real estate jobs are rising. More Americans are investing in real estate because of low-interest rates and rising property values. This is one of the best times to invest in rental properties in years.
Rental demand is also rising across the country, and the need for skilled property managers is also increasing. One report notes that the worldwide property management market is expected to grow from $14 billion in 2018 to $22 billion in 2023.
This increase in demand makes it more challenging for renters to find apartments and houses. So you can take advantage of so many people needing a place to live by being a property manager.
Gone are the days when local property managers did everything on paper. Today, you can do most of your work online with software and apps. Using technology, you’ll work efficiently in property management, from collecting rent remotely to screening tenants and doing background checks.
Working with minimal time wasted means you can manage more properties and make more money, too.
Work With Many Kinds Of People
Many people enjoy working with all kinds of people – they’re natural extroverts. In property management, you’ll meet many different types of people every day. Working with people of many kinds of backgrounds can be exciting.
Every day, you’ll collect rent from different tenants and screen people for vacant properties. Plus, you’ll work with investors and maintenance people as the properties are repaired. So no two days are the same in property management.
Being a property manager has challenges, but the money makes it worthwhile. Salary.com reports the median property manager salary is about $100,000 per year. Not every property manager will make this much because wages vary based on location, workload, and experience.
But many property managers make between $50,000 and $70,000 annually, and a certified property manager can earn at least $100,000 per year. These types of salaries are a significant draw for aspiring property managers.
You also can continually expand and make more money in this business. The more entrepreneurial spirit you have and the more properties you manage, the more you can make. With experience comes success, so make sure to learn and understand the common challenges landlords face, and why in turn, they often need professional help.
Some property managers also eventually hire their staff so they can manage more properties. And if you’re the owner of the company, you get a percentage of every employees’ managed properties.
Learn Real Estate Skills
Some rental property investors never manage their properties. Instead, they hand off responsibilities to property managers so they can go about their lives while still making passive income. But by not working on their properties, they lose developing many skills that come with being active in the field.
The many tasks you take on daily as a property manager offer you an advantage over others in the real estate market. Property managers understand how many factors affect the value of a property and whether it’s profitable.
When you manage and keep track of the many aspects of each rental property, you will have knowledge and expertise that you can use to buy properties yourself one day.
Professionals who are serious about learning the real estate business may want to become property managers. You’ll learn many skills, such as what affects property value, how to get repairs done affordably, and much more.