How do I become a property manager? I’m sure that was what came to your mind before jumping on this article.
While many are interested in a career in real estate, not everyone wants to become an investor or agent. Fortunately, if you are one of those people, there are myriad other real estate careers to choose from, one of which will be, becoming a real estate manager. This is a great option for someone looking to make money in real estate without owning one property.
If you are new to the business and want to learn how to become a real estate manager with no experience, this guide is for you.
Before we get into the actual steps of real estate management though, let’s explain who a real estate manager is, what they do, and why you should consider becoming one.
Who is a Property Manager?
As the name suggests, a property manager is an individual or company that oversees the day-to-day running of a property. It can be an income-generating residential property, commercial property, or industrial property.
That is to say, another party owns this property but is unwilling or unable to manage it. For example, some real estate investors do not live near their investment properties or do not enjoy dealing with tenants.
For them, hiring property managers is the ideal solution to ensure their property investments achieve the expected income and ROI(Return on investment).
The cost of hiring a property manager is often tax-deductible from the property’s income. Apartment complexes, shopping malls, and commercial offices are common types of commercial property managed by property managers.
Thus, the question i will always ask…
Are you made for the property manager job?
Property managers have different personalities. They tend to be enterprising individuals, which means they are adventurous, ambitious, assertive, outgoing, energetic, enthusiastic, confident, and optimistic. You are dominant, persuasive, and motivating. Some of them are also conventional, which means that they are conscientious and conservative.
Why you should consider a career in Property Management
Property managers generally do not need to have formal education or credentials. However, knowledge of the local real estate market is essential when it comes to providing advice on rental levels and attracting and retaining tenants.
In addition to a salary or hourly wage, domestic property managers often receive free or discounted rent when they live in a building they manage. Property management companies can receive compensation or receive a percentage of the building’s income.
If I should put this in simple terms, this sector of the real estate industry is in high demand and is expected to grow even more.
In fact, the employment of real estate, property, and community executive managers is expected to grow 10% from 2016 to 2026 – faster than the average occupations, according to the U.S. Department of Labor Statistics.
One of the reasons for this growth is because more people want to live in apartments, where property management firms are generally responsible for running.
In addition, property owners are increasingly becoming aware of the importance of good property management.
What Does a Property Manager Do?
The property manager is the eyes and ears of the owner on the property and ensures that problems are resolved immediately and that the property itself is professionally looked after.
Property managers can do more than just manage. They perform a variety of roles and provide a range of services to real estate investors and rental property owners. Here are the typical roles of a professional property manager that you need to know in order to learn how to become a property manager:
Setting the rental rate for the property and setting up a system for collecting rent from tenants
Marketing and advertising rental properties and making them appealing to attract potential tenants
Following up with applications, screening tenants, and showing them properties
Discussing the lease and explaining the terms of occupancy or ownership
Maintaining consistent and current communications with owners and residents
Performing house visits and doing quarterly or biannual property inspections
Ensuring the adequate maintenance, preservation, appearance, and operation of the property
Taking care of some of the expenses that are part of running a rental business like paying bills
Preparing budgets, financial reports, property status reports and keeping owners in the loop
Settling complaints/emergency repairs and maintenance requests from the tenant
Handling lease renewals, tenant retention, move-ins/move-outs, and the eviction process
Staying up to date on the latest landlord-tenant laws, rules, and regulations to protect the owner
Performing basic accounting duties and assisting the owner with filing taxes for the property
Maintaining records regarding the property including income and expenses, signed leases, any complaints, records of repairs, records of rent collection, etc.
How Much Does a Property Manager Make?
How much do property managers make with all of these roles and responsibilities? This is probably the most frequently asked question anyone wondering how to become a property manager.
According to the United States Bureau of Labour Statistics, the median salary for managers of real estate, property, and community association managers in 2018 was $ 58,340.
However, what you earn will depend on certain factors, including your level of Education, the certificate you have. Regardless of whether you are a full-time or part-time property manager, what type of properties you manage, how many properties you manage, and how many years you’ve been in the real estate industry. Of course, where you also affect how much you make managing real estate.
This is because property values, rental rates, and the level of competition in the market differ between locations.
How to Become a Property Manager Step by Step
Do you think you can take on the above property manager duties and are seriously considering a career in rental property management? If you answered yes, here are 5 sure steps to get started:
1. Research the Legal Requirements:
The first step before embarking on a career in real estate is knowing what the law requires of you. This is true for those interested in managing investment property in the United States as the specific requirements vary from state to state.
For example, most states require real estate managers to hold a real estate agent license. This is because many of the duties of a property manager are similar to those of a real estate broker.
However, some states (such as Montana, Oregon, and South Carolina) only require a property management license. Other states (like Idaho, Kansas, and Maryland) do not have a license requirement!
In addition, there are different laws that may or may not apply depending on the type of property being managed.
It’s entirely up to you to know what laws and regulations apply to you. Typically, to become a licensed property manager you will need to meet certain requirements in terms of age, property education, experience, place of residence, and possibly even an exam.
Learn more about how to become a property manager in your area by reading this guide, which breaks down the requirements by state.
2. Get All the Needed Real Estate Education
Real estate managers typically don’t need a special educational background, but a high school diploma may be enough for some people to hire you. However, the number of property management firms that prefer to hire college graduates is increasing.
Therefore, consider earning a bachelor’s or master’s degree in real estate, business administration, public administration, finance, or accounting. This will help you acquire the necessary skills in real estate such as strategic management and marketing which will increase your chances of becoming a real estate manager.
In addition, knowledge of the real estate sector and the local housing market is essential. For this reason, some companies are looking for candidates with real estate vocational training or a real estate license.
Therefore, experts often recommend courses for beginners in real estate development, management, finance, urban planning, and affordable housing management.
Taking real estate classes is great if going back to school isn’t an option for you as you can easily take classes online. Another great tip is to apply to a real estate agent or property management firm for an on-the-job training or entry-level position and improve your knowledge and experience through the ranks as you gain more knowledge and experience.
3. Acquire Specialized Certifications
This is an important step because even if you learn how to become a property manager in a state that doesn’t require a license, you may still need to take a certification test. When you become a licensed property manager, you are showing businesses and prospects that you have a high level of professionalism and dedication. You will understand business best practices, and most importantly, have knowledge beyond the average real estate manager. It gives you an edge and opens up opportunities as your career grows.
A range of professional certifications is available for potential property managers. The ones to focus on in the beginning are:
NALP (National Apartment Leasing Professional) certification: This gives new property managers the ability to do their jobs more efficiently and effectively
Certified Apartment Manager (CAM) Certification: Aimed at on-site managers, who are often the only property managers apartment residents face on a daily basis
Certified Property Manager (CPM) Certification: This certification is typically earned to differentiate you from the competition and is a useful certification for starting a property management company
Master Property Manager (MPM) Certification: This is the highest honor a residential property manager can receive. This certification recognizes you as an industry leader and a versatile residential real estate professional.
Of course, in order to earn any certification and pass a test (or set of tests), you must meet certain requirements. Learning how to become a certified real estate manager will definitely set you apart and advance your career.
4. Find Your First Property to Manage:
Of course, once you get the appropriate certification, the next step in managing a rental property is getting your first job. Finding an owner who needs a manager is easier said than done.
However, there are a number of ways for savvy property managers to research rental properties and find the right one. First, let your friends and business contacts know that you have a job in property management and are looking for a rental property.
Anyone starting a career in the real estate industry should have a network of professionals. These professionals are also a great resource for a property manager. So if you can’t find a real estate investor yourself, someone else can guide you.
For example, investors are constantly working with real estate agents, brokers, wholesalers, and developers. Get in touch with these professionals, introduce yourself as a property manager, and ask for advice. This is how they get to know you and remember you when they learn of a job for you.
After all, you can always search online for real estate management companies looking for employment and these will lead you to your first job as a client and rental manager.
You can even create your own website, promote it on social media platforms, and have customers contacted! In addition, there are real estate websites out there to help anyone find rental properties for sale.
Even if you’re not in the buying business, real estate investors certainly are. After you’ve worked with your first client, consider using some websites to find profitable rental properties that your client will buy and manage. It’s an easier way to get a grip on more properties without actively searching for more clients.
5. Stay Updated on Best Practices
You don’t just want to learn how to become a property manager. You need to learn how to become a successful property manager, the watch word is SUCCESSFUL.
Successful managers don’t rest after getting their first job. Many say it’s a job that requires you to wear lots of hats – which means you have to do more than the typical tasks mentioned above.
You also need to keep up to date on real estate management best practices. However, it is something you do for yourself as it allows you to continually develop your skills and understanding of property trends and the housing market in general.
In addition, real estate laws and regulations that affect rental properties can change at any time. Such changes, in turn, can affect your clients and their investment properties, and it is your responsibility to keep them informed.
Good property management, therefore, means keeping abreast of changes in laws or regulations in the real estate industry.
A great way to stay up to date is to read real estate blogs that cover topics such as news on all the real estate market implications and tips on using new technology to attract new technologies. Customers and promote your career.
What Property Manager Skills Do you need to succeed?
While property management can be difficult for some, it can be exciting for others. Those with the right skills will find being a property manager to be fun and fulfilling. If you have (or are willing and ready to acquire) the following 6 skills then becoming a rental property manager is a suitable career path for you:
#1. Good Communication Skills
Since property managers come into contact with people every day, strong communication skills are a must for anyone interested in becoming a property manager. The way you communicate with others and the words you choose can affect your growth in the real estate industry.
While the properties you manage are an important part of your portfolio, a large part of your success is generating high rental income. You can do this by attracting new tenants and keeping existing tenants. This means that it is how you communicate and interact with new and existing tenants that can help you close the deal.
You need to communicate clearly and respectfully, listen carefully, read body language, and demonstrate kindness and empathy. It helps you resolve conflicts, deal with rude behavior, and have difficult conversations.
You should also have a process in place that tenants can use to contact you if necessary. Just keeping the lines of communication open is a great skill for property managers in building and maintaining good tenant relationships.
#2.Have Great Marketing Skills
Marketing rental properties to find potential tenants is one of the most important jobs of property managers. Because of this, you need a basic understanding of real estate marketing strategies and techniques. For example, you need to know how to write a good property description that appeals to a specific group of tenants. You should also know how to prepare or organize the property for rental before showing it to potential tenants.
Nowadays, most people start looking for rental properties online. A property manager should therefore know how to use social media platforms and list services to reach the desired tenant groups. So do you know which digital marketing strategies you should use to find a tenant for long-term or free letting? If not, it is highly recommended that you learn more about property marketing as you learn how to become a property manager.
#3.Great Organizational Skills
When managing rental properties, you can potentially answer dozens of calls and hundreds of emails a day. You may need to attend board meetings, conduct inspections, and view properties on the same day.
Someone who is neither detailed nor organized will never be able to do all of this work.
Hence, you need to be extremely detail-oriented, know how to manage your time, and have a high level of organizational skills to become a property manager.
You can also avoid difficult situations if you organize yourself from the start. For example, a tenant will not complain about a leaky roof if you or the property management company have an ongoing maintenance program that checks fixtures, plumbing, and other problems in the property before renting.
As you can see, the organizational skills allow real estate managers to plan, coordinate, and prioritize their work to ensure that they are more effective in meeting their responsibilities.
#4. You must have Good Problem-Solving Skills
Successful property managers are the ones who can solve the problems ASAP. When tenants make a complaint to you, they want a solution as soon as possible.
Hence, the way you deal with problems can make you stand out as a property manager. You need to be able to make smart decisions, develop innovative ideas, and overcome obstacles.
This is probably the first thing real estate investors look for in a property manager. After all, buying an investment property is a big decision and you want to make sure that you can resolve any issues quickly and take care of the property professionally.
So before starting your career in property management, ask yourself: Do you have the problem-solving skills to keep your clients and tenants happy?
#5. Customer Service
One of the mist valued skill of a property manager. Thus, as a property manager, you work not only with the owner of the investment property you manage, but also with the tenants or tenants of that property.
They will most likely have something to ask or complain about. For example, a tenant will contact you if the roof is leaking. As mentioned earlier, one of your roles as a property manager is managing this emergency in a way that meets the needs of property owners and tenants.
As a result, customer service skills are required, which include providing solutions, acting thoughtfully and patiently, and smiling and having a positive attitude.
Excellent customer service ensures that good tenants are retained and more customers are won.
#6 You Need to be very Resourceful
Finally, every real estate manager needs to be very Resourceful. Similar to the real estate industry as a whole, the real estate management industry is also evolving.
Today there are many software solutions that offer various functions and tools to make your life as a manager more efficient. To stay competitive you need to use these innovative tools.
This becomes especially important as you grow up and become a residential property manager for multiple rental properties, each with multiple tenants.
Also, you need to deal with various issues like vacation tracking, repairs and making sure every tenant paid the rent on time. That’s why successful property management companies use software solutions to stay organized.
You can find accounting software that will help you keep track of all the profits made by the management company and how much is paid to sellers, contractors, and owners.
Some rental property management software offers tenants certain services that make it easier for them to pay their rent online with credit cards, report damage, and request repairs from the comfort of their laptop or smartphone.
In this guide, we’ve looked at how you can become a property manager without the experience and skills that you need to succeed on that career path. If you don’t already have these skills, then instead of giving up being a property manager, you should develop them. If you have the patience to learn and grow your career over time, real estate is easy to make money only if you are willing.