It’s a great time to start a career in property management if you’re looking for a way to generate money in real estate.
A significant and anticipated area of the real estate market is rental property management. The global market size of this industry is predicted to increase from $14.47 billion in 2018 to $22.04 billion in 2023, at a Compound Annual Growth Rate (CAGR) of 8.8 percent, according to a study published by MarketsandMarkets.
Of course, the US market continues to be the largest and is expected to remain so during the forecast period. This informs you that in the US home market, property managers can anticipate earning respectable compensation. Are you curious about the salaries of property managers? Find out by reading on.
What Does a Property Manager Do?
A property manager makes sure that all facets of managing commercial, industrial, or residential rental properties are handled correctly.
They are responsible for managing a property’s administration, upkeep, and operations. The property manager can also manage a variety of staff members, including those in the accounting, sales, maintenance, and grounds-keeping departments.
Either the property owner directly hires the property manager or the property manager is indirectly hired through a contract with a property management company.
For real estate investors who prefer a more hands-off approach and a professional managing their property, their services are the ideal answer.
When you work as a property manager, you’ll frequently have a full-time schedule and be accountable for the following duties, among others:
- Meet with and show potential tenants rental properties
- Talk about the lease and describe the conditions of occupancy.
- Tenant monthly fees should be collected.
- Plan for any necessary maintenance and repairs.
- Pay your mortgage, taxes, insurance, salary, and other obligations.
- Investigate and resolve reports of infractions, commotion, and other issues.
- Maintain rental activity logs; create budgets and financial reports.
- Understanding and following local fair housing legislation
They frequently employ a property or real estate manager when real estate investors or owners of rental properties lack the time or competence required to execute these activities. You may be employed as a rental property manager directly by the owner or indirectly through a partnership with a property management firm.
An excellent job choice is property management if you have the aptitude for organizing, analyzing, speaking, listening, and problem-solving. Let’s examine the pay you might anticipate in this area of the real estate market.
Key Qualifications to Become a Property Manager
Only six US states do not require a license to work as a property manager. For example, Idaho, Maine, and Vermont do not require a license.
To become a property manager, however, requires both a minimal requirement and more in-depth training, just like in any other job.
The fundamental requirements for a property manager, as well as additional certifications and state license compliance, are covered below.
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Minimum Qualifications of a Property Manager
- Minimum age of 18 or 21 years depending on the state
- High school diploma or equivalent GED
- Legal US citizen or permanent resident
- Real Estate License Coursework and Passing Score on Real Estate Licensing Examination (if needed per state law)
Essential Skills Every Property Manager Needs
Communication
You never know who you’re going to run into when you’re working as a property manager. Strong verbal and written communication is therefore essential!
Regularly property managers respond to emails, text messages, and phone calls, and send written notices to their tenants.
Patience
The ability to defuse tensions amongst renters or soothe a worried landlord requires persistence and a variety of effective de-escalation strategies.
Attention to Detail
Legal documentation and sensitive information are involved in managing a rental property. Filling out contracts, delivering notices, and following all applicable laws need meticulous attention to detail.
Organization
Property managers are multi-faceted professionals who need to be very well-organized if they are to keep track of all of the many operations.
It also necessitates good time management and the capacity to multitask to handle lease operations, turnover maintenance, and accounting.
Basic Accounting
Keeping track of rent payments, calculating and recording late fees, or keeping track of expense reports necessitates basic accounting abilities for property managers.
However, property managers should be aware of accounting best practices even if software solutions make it easier for them to keep track of their finances.
How much does a Property Manager make?
In the United States, the average salary for a property manager is $48,333 per year or $23.24 per hour. When it comes to salary, the least 10% of property managers make about $35,000 per year, while the top 10% of property managers bring in $79,812.
The salary a property manager can anticipate depends on where they work. In Idaho, Hawaii, Washington, Oregon, and New York, property managers make the greatest money.
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Factors determining a property manager’s salary
Property type
The type of property you manage is one of the most important elements in determining your income. Residential, commercial, industrial, and special-purpose property management all have their own unique set of challenges and rewards, and the compensation for each differs significantly.
A residential property manager’s annual salary ranges from $36,000 to $59,000, with the average being $48,583. Residential property managers might earn as much as $70,000 a year.
Commercial property managers, on the other hand, bring in an annual salary of $64,373 on average, with the majority earning between $50,500 and $75,500. On the other hand, a few high-earners are making as much as $87,000 a year.
Level of education
A high school diploma is the bare minimum education needed to manage rental properties. However, because many jobs in marketing, finance, and business planning necessitate additional training, businesses favor candidates who possess these skills.
A bachelor’s or master’s degree can greatly increase your chances of securing a higher salary. However, you should take into account the school loan debt you will undoubtedly accrue and whether or not the increase in your pay will offset it.
You can also demonstrate to prospective employers that you are a market expert and more knowledgeable than the ordinary property manager by earning a state certification instead of going to college.
This will help you stand out and advance your profession if you take advantage of the many certifications and formal training programs available.
Location
New York City, Los Angeles, and Atlanta have the highest median earnings for property managers in the United States. The fact that a greater salary generally translates into higher living expenses, particularly in urban areas, must be kept in mind.
Experience
The number of years spent working as a property manager, in addition to continued employment, will typically result in a pay rise.
Salary by experience level
Entry-level (less than 1 year experience)
The typical total income for an entry-level property manager is $41,491, and this figure takes into account overtime pay and tips in addition to the base wage.
Average entry-level property manager salary
Early-career (1-4 years of experience)
When taking into account overtime pay, tips, and other compensation, an entry-level property manager may anticipate making a total annual salary of $46,744 on average.
Average early-career property manager salary
Mid-career (5-9 years of experience)
The typical total income for a property manager with middle-level experience is $51,624, and this figure takes into account overtime pay, tips, and bonuses.
Average mid-career property manager salary
Experienced (10-19 years of experience)
An experienced property manager may anticipate earning total compensation of $56,024 on average (this number takes into account overtime pay, tips, and bonuses).
Average experienced property manager pay
Late-career (20+ years of experience)
A property manager who is nearing the end of their career can anticipate earning total compensation of $59,535 on average (this figure takes into account tips, bonuses, and overtime pay).
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Perks and benefits of the job
A property manager might expect many bonuses in addition to reasonable compensation, including the following:
- Insurance for health, vision, and dental care;
- retirement savings plan in the form of a 401(k);
- paid vacation; insurance against disability;
- a flexible spending account;
- an employee assistance program.
- Insurance for accidental death and dismemberment;
- flexible spending accounts;
- commuter support.
In conclusion
To summarize, anyone interested in pursuing a career as a property manager ought to give careful consideration to the many aspects that go into determining pay.
The number of years of experience that you have will guarantee a steady increase in pay, but the most important thing to consider is the type of property that you would like to sell. Commercial property managers are guaranteed a much heavier cash flow than residential property managers.
It is essential to keep in mind that even though urban locations may offer higher salaries, the cost of living in these areas frequently balances that out, making relocation something that should be carefully considered.
How Much Do Most Property Managers Make?
The average Property Manager makes $118,640, with a typical range of $98,288 to $136,094.
What Degree Is Best For Property Management?
While a high school diploma may suffice for some employers, a bachelor’s degree in business administration, real estate, accounting, public administration, or finance is increasingly preferred.
FAQs on How Much Is Property Manager Salary In 2023
Increasing the number of properties under your management as a property manager will allow you to increase your income.
The typical fee that clients of property management companies pay their property managers is approximately 10 percent of the rent that is collected. As a property manager, having multiple rental properties under your management will allow you to generate multiple streams of income.
Property manager responsibilities include setting and collecting rent, handling maintenance requests, filling vacant units, and potentially setting the budget for the property.
Property managers often take care of a property that real estate investors either do not live near or do not wish to personally manage.
To realize the maximum profit on the property that is consistent with the owner’s instructions.
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