At the course of our journey together, we’ll be looking at property management and all there is to know about it. From its meaning to how to get started down to understanding the roles of a good property manager, helpful tips on being successful in this new path you might soon choose to take and also how to become professional in this career choice. This review is aimed at helping you decide if you are ready to ride the property management train or if this career isn’t suited for you.
It’s also aimed at helping entrepreneurs know steps to take to grow successful careers in property management and maybe someday own a property management company.
What is Property Management?
For beginners, property management is a business that involves managing different kinds of people and real estate. Meaning you’ll be dealing directly with landlords, tenants, and contractors, maintaining a professional relationship.
Property management also involves in ensuring a rental is being operated according to the direction given by the owner, whether the goals be financial or based on providing attractive living conditions, or both.
Direction can take diverse forms. Most corporate property owners may issue mission and vision statements for their properties, while on the other hand, individual owners may verbally give their goals for the property.
The property manager makes sure that reliable tenants occupy the property, payments are received on time, budgets are followed, and the rental is maintained properly.
How Does Property Management Work?
Property managers take care of daily activities in a rental property. They should have a working knowledge of the real estate industry the rental operates in, such as industrial property or housing.
The property manager then works hard to make sure the owner’s targets are met by managing rent, tenants, maintenance, budgets, and rental property records. They must also have an in-depth understanding of state and national laws regarding the legal methods to screen tenants, handle security deposits, terminate leases, conduct evictions, and comply with property safety standards.
Getting Your License
Some states have specific requirements that must be met in order to legally become a property manager. For example, almost all states require that property managers earn a real estate license. Many essential property management tasks are considered to be real estate activities, so having a strong educational background in real estate is crucial to your success.
To get your license, you’ll need to register in an in-person or online real estate license school where classes will be held to prepare you for the licensing exam. The assignments cover real estate fundamentals, in addition to more specialized topics like real estate laws and contract clauses.
Some companies will be willing to employ qualified candidates with a high school degree or equivalent, but the majority are on the lookout for candidates with a bachelor’s degree in business, real estate or a related field. Make sure you check out local job boards to see what employers are open to.
In line with having a degree and/or a real estate license, you should also look into property management certifications. Getting a certification isn’t compulsory but it will give you an advantage over other candidates when you start searching for jobs.
The Institute of Real Estate Management
The Institute of Real Estate Management (IREM) offers four types of property management certifications:
Certified Property Manager (CPM) is the standard certification.
Accredited Residential Manager (ARM) is for residential property managers.
Accredited Commercial Manager (ACoM) is for commercial property managers.
Accredited Management Organization (AMO) is for real estate management firms.
The Building Owners and Managers Association International
The Building Owners and Managers Association International (BOMA) is an organization that serves the commercial real estate industry. They offer one primary certification:
Certified Manager of Commercial Properties (CMCP) is for commercial property managers in the early stages of their real estate career.
The National Association of Residential Property Managers
The National Association of Residential Property Managers (NARPM) serves the residential property management community. The certifications they offer are for more experienced property managers seeking continued education.
Residential Management Professional (RMP) for property managers that have experience managing at least 100 units over a two-year period.
Master Property Manager (MPM) is for property managers who have already obtained an RMP and have experience managing at least 500 units over a five-year period.
Certified Residential Management Company (CRMC) is for residential property management firms.
These are just three examples of professional property management organizations that offer certification courses for individuals looking to take their education and expertise to the next level.
Job of a Property Manager
Setting rent is a basic job of any landlord. Hence, it is one of the most common jobs a landlord will forward to a property manager. The property manager put up competitive rent prices to draw tenants to the property. Normally, this is done by carrying out a survey of like properties in the area; this should be carried out at least once a year to remain attractive for tenants.
The property manager also puts up a system for collecting rent from tenants. To guarantee the best possible cash flow. They set a collection date to make sure that property monthly fees are able to be paid, and strictly implement late bill policies.
Selecting and managing tenants is one of the core responsibilities of a property manager. The property manager may be involved in finding and screening potential tenants, overseeing daily complaints and maintenance issues, and handing tenant move-outs and evictions.
It is the job of the property manager to keep the property in a safe and habitable condition. Property managers are being held accountable for the physical management of the property, which includes constant maintenance and impromptu repairs.
He/she will also supervise the contractors and other repairmen must to be sure the services they are giving it is up to standards and that they are carrying out their work in a appropriate way.
Managing the Budget
Property managers can be accountable for preparing the budget for the building and for preserving all important records.
The manager must work with the building’s set budget in mind. The property managers can use their better judgement in certain cases of emergency, when the tenants or the structure itself are in danger; they order for repairs irrespective of the budget.
Property managers should be well informed about accounting practices to ensure accurate bookkeeping for income, tax, and investment purposes.
Types of Property Managers
Commercial property managers: They specialize in real-estate used for business purposes. These kinds of property managers should be knowledgeable in industrial buildings or administrative-type spaces.
Multi-family property managers: This kind of property managers are used to managing facilities such as apartment complexes. They also need to have good customer service skills and the capability to calm situations, and carry out the normal duties of a property manager.
Single-family home property managers: They employed by real estate investors who hold their investments and rent them out for additional income. These types of financier usually buy homes in areas with high rate of residential revenues, such as in a military community, where there’s low or no purchasing of homes.
Skills Needed For the Job
This is for those who have decided to devote their time and resources into professional property management. To ensure they start off on the right path, they need some certain skill sets to be good at the job.
As a property manager, you would surely have to converse with people from diverse background. Possessing good communication skills will make the experience more nice and enjoyable. As well as, building relations with contractors and local law enforcement needs you to have the ability to adapt and be flexible, Ability to understand, being able to bond with people is also vital.
In property management emergency situations is an everyday routine which you should be able to take care of stylishly. Surely, you would rather prefer to build up a solid network of contractors to handle repair problems. You may be assisting the landlords make important changes to their properties. Mostly, your daily schedules will consist of working with property owners, tenants, contractors, so your people skills would be very important.
Be detailed. The truth is, when you need to handle a range of things, it’s difficult to concentrate. Yet, the job presumes you will be the one held accountable and the one in charge of the management of the properties, legal paperwork and so on. You would be left to blame if your lack of focus causes you to lose some aspect of a deal, the deal can go wrong and that’ll be for business. This is why it’s important to be thorough in property management business.
This skill is one of the most important ones that a good property manager should possess. Property landlords are looking for people who are trustworthy, proficient, individuals they can trust with their assets. You would surely need to have time management skills to keep lasting relationships with the myriad of clients, contractors and not to forget about paperwork. Time is very crucial in order to leave everyone satisfied and to have the work done in time.
Whilst a number of property manager skills are more obvious than others, marketing skills are most times left out when property management skills are concerned. Why is it important for a property manager to have marketing skills? Property managers have to publicize vacant apartment units and need to be able to write about them interestingly.
Customer Service Orientation
Customer service orientation is also one of the important skills of a property manager. Property managers are meant to serve their customers, both tenants and property owners. Customer service is about being available and managing your customers’ inquiries.
A good property manager is always there for his/her tenants; it can be, through the internet, since the world is becoming a global village. Property managers can make use of software where tenants get to ask questions and find relevant resources.
When your tenants or the landlord makes inquiry about the rental property, they should be answered as soon as possible. Property managers will also need to take immediate action and attend to tenants’ problems when need arises. A network of dependable contractors will come in handy for emergency repair and maintenance work. Good property managers put people first, over other responsibilities and get the reward with better tenant retention.
In this guide we’ve been able to discuss everything there is to know about this career; property management and we’ve been able to put you on the path to a successful career in this field. Property management can be a very tasking job and is clearly not for everyone, if you believe you can take the heat, stay in this kitchen! Surely your hard-work will pay and you’ll see yourself reaping great rewards.