Property Manager: a path to success

Six reasons why managing properties as a professional property manager can be a fulfilling career choice

Property Manager: a path to success

Every day the real estate market of big cities worldwide is flooded with properties that are available for rent. If ever it has happened to you (like it's been happening to myself) to be the tenant of a property, you might have come across the profession of the property manager. Probably you may have met more than one.

But first, let's consider some interesting facts:

  • According to this article, the US property management industry generated more than 88 billion USD in 2018, counting around 67% of US renters aged 35 and under.
  • The Australian Institute of Health and Welfare at the beginning of August 2020 has published a report showing the amount of Australian households renting a property went from 18.4% in 1994 to 27.1% in 2018.
  • This link shows that in Canada in 2019 on average rents rose by 5.4% and (still in 2019) vacancy rate reached 2.2%, down from 2.4% in 2018.

Looking at the above, it doesn't come as a surprise why it seems so normal to stumble upon a property manager.

But why so many? Have you ever wondered what is so attractive about managing properties? Have you ever thought why landlords are happy to fork out a part of their earnings to appoint dedicated property managers? Moreover, do things like meeting new people, continually improving communication skills, becoming better every day at negotiating sound attractive?

If any of these questions have positively stimulated your curiosity, well, it might be that property management could be a possible career choice for you.

Below you can find six reasons why being a property manager can be a good bet for your future.

  1. Freedom

Property Manager: a path to success

Property management is a profession that offers a right balance between working in the office and spending time outside, making it very attractive to people who do not want to be tightened too much to a predictive schedule.

On the one hand, you could have days where most of the time needs to be dedicated to organising your work, do some research, making sure all payments are cleared out, the staff is on schedule with their tasks. In this case, I believe the tranquillity your office can offer is optimal for this type of activities. On the other hand, it won't be uncommon for you to require moving from one point to another of your area of operations to meet different type of people: tenants, landlords, handymen, plumbers etc.

If enjoying the comfort of the office and being on the move without relying too much on the concept of "predefined" day is what you are after, this could be the right job for you.

  1. Challenges

Property Manager: a path to success

I bet every property manager will tell you that their typical week is full of exciting and sometimes unpredictable situations: broken sinks flooding properties, water infiltration, blinds falling apart to name a few. If this doesn't scare you, I can see you would have the right attitude to be a great property manager.

As a property manager, it is essential to act quickly yet stay calm in front of the odds that will inevitably come up. However, this can also be very rewarding when at the end of your day you go back home feeling you have again solved another problem thanks to your experience, cold blood and savoir-faire.

  1. Remuneration

Property Manager: a path to success

Let's face it: nobody would like to start their career doing something that wouldn't offer some form of monetary recognition along the way.

Of course, nothing will happen since day zero. Still, there are plenty of people who embrace this type of career, and with the right form of persistence and willingness to adapt have become respectful and experienced agents. According to a seek.com.au article, Australia's most common salary for a Property Manager is between $65,000 and $75,000 per year with someone reaching the "6 figures" mark at the top of their career.

In some cases, they have managed to establish their own business exclusively centred around looking after portfolios of properties with considerable profit over the years. For example, let's think about Sydney, NSW where on average property managers charge fees from as little as 5% up to around 12% of their gross rent (as clearly outlined in this article). Under these conditions, it's easy to envision how everything can add up, especially if the number of properties to manage falls into the hundreds.

  1. Opportunities

Property Manager: a path to success

The truth is that very often property management is a service real estate agencies offer together with several others: organising sales of residential properties, buying on behalf of their clients, coordinating the sign-off of long-term office lease etc. While operating as property managers, the successful person can learn the out-and-about of real estate and be exposed over time to different opportunities like property development, stable long-term leases, condominiums administration, etc.

The possibilities are endless, but I think working as a property manager could be one of the best "training on the job" to increase your knowledge about properties and be able over time to spot great deals.

  1. Technology

Property Manager: a path to success

Why should we leave all the job to ourselves without taking advantage of the latest technology trends and tools? A lot of people may think that being a property manager means regularly dealing with the following:

  • learning by heart a lot of names or places (that is true to a certain extent, but where is not?);
  • Making sure incoming operations (e.g. rent due, invoice to be paid etc.) are written down into an electronic spreadsheet you hope to be able to find whenever you need
  • Hoping not to lose your phone with all these precious contacts (best plumber in town, fantastic builder, very professional lawyer etc.) they become vital when the unexpected happens.
  • Or being able to know (and remember) precisely who's got a bad history as a tenant and therefore could represent a potential issue for your client.

Thankfully, nothing could be further from the truth. In recent years, the field of property management has known a boom of software solutions that can do all of the above seamlessly. Tools like PropertyTree, Otello, Re-leased, Appfolio, or Smartsite are all excellent assets to help you do your job at your best, leaving the heavy lifting to the technology.

Be prepared to do your due diligence to verify which one best applies to your situation as well-explained in this article: https://www.rentecdirect.com/blog/pick-best-property-management-software-avoid/.

  1. Skillset

Property Manager: a path to success

As briefly mentioned above, being a property manager is not only about properties. What if I said you'd be exposed to Marketing, Finance, Communication, Analysis, Engineering, to name some of the disciplines you would have to deal with?

But wait! Don't be scared! I am not saying to become a property manager you need to be at the same time an engineer, an architect, a marketing expert etc. Your key competencies will stay within the real estate field, but you will have plenty of chances to learn something about other subjects making this career even more appealing.

Conclusion

If you like a vibrant life where every day can be potentially different, you are all about acting fast, you love solving problems, and on top of that, you want to be named the one that gets "headaches" away from your clients then becoming a property manager can be a recommended choice for you.