What does a property manager do?
Is property management a good career? What exactly does a property manager do?
If you’re curious about what a property manager does, then you’re in the right place. This article breaks down the key expectations of a property manager, including their daily responsibilities, how much they earn, and the different types of property management roles available.
Whether you're considering a career in property management or just want to understand more about this profession, we’ve got you covered!
What is a Property Manager?
A property manager is a professional who oversees the day-to-day operations of real estate properties on behalf of the owner.
Their responsibilities typically include maintaining the property, handling tenant relations, and ensuring that rent is collected on time.
Property managers can work with both residential and commercial properties. They help property owners maintain their investments, reduce vacancies, and increase profitability.
So, what is a property manager? In short, they are the bridge between property owners and tenants, ensuring that everything runs smoothly and the property remains in excellent condition.
Difference Between Property Manager and Landlord
Is a property manager a landlord? No. While it may seem that a property manager is the same as a landlord, they’re different. A property manager is hired by a landlord or property owner.
A landlord is typically the property owner, whereas a property manager is their representative. This means that property managers handle the daily responsibilities that landlords might not have the time or expertise to manage, making it a valuable profession in the real estate industry.
What Does a Property Manager Do?
Property managers wear many hats. Property management duties can vary depending on the type of property they manage—residential home, a commercial building, or even a mix of both.
What property managers do involves looking at a broad range of responsibilities, from ensuring the property is well-maintained to balancing budgets and even handling tenant relations.
Below, we’ll explore the responsibilities of a property manager. Also, we’ll explain the expectations of residential and commercial property managers.
1. Tenant Management and Relations
One of the core property manager responsibilities is managing tenant relations. This includes everything from screening potential tenants and signing leases to handling tenant concerns and maintaining positive relationships.
For residential property managers, this often means dealing with tenants on a more personal level, such as handling issues inside their homes, addressing noise complaints, or resolving disputes among tenants.
In commercial property management, tenant relations may involve working with businesses and ensuring that the commercial space meets their operational needs.
Property managers are the main point of contact for tenants, acting as a liaison between them and the property owner. They ensure that tenants follow the lease agreement and address any concerns that may arise during their tenancy.
Keeping tenants happy is crucial! A positive relationship often leads to higher tenant retention rates and fewer vacancies.
2. Property Maintenance and Upkeep
Another key responsibility is ensuring that the property is always in good condition. This involves scheduling routine maintenance checks, hiring contractors for repairs, and responding promptly to emergency situations.
For residential properties, this could mean arranging for lawn care, fixing plumbing issues, or addressing safety concerns.
In commercial settings, the expectations of commercial property management might include overseeing larger maintenance projects like elevator inspections, HVAC system management, and ensuring that the property meets safety codes.
Top tier property managers are proactive. They identify potential issues before they escalate. This keeps tenants satisfied and protects the property owner’s investment by avoiding costly repairs and prolonging the lifespan of the property’s infrastructure.
3. Rent Collection and Financial Management
Collecting rent and managing the property’s finances are crucial aspects. Residential property managers are responsible for ensuring that rent is collected on time each month, handling any late payments, and occasionally negotiating payment arrangements.
For commercial properties, this responsibility can extend to managing multiple leases, coordinating with business tenants on rent escalations, and even tracking the property’s overall financial health.
Property managers possess strong financial acuity. This includes budgeting for maintenance and calculating return on investment. Also they are excellent bookkeepers. They maintain accurate records and provide financial reports to property owners.
4. Marketing and Leasing
Property managers are often responsible for advertising and leasing vacant units. For residential property managers, this might involve listing properties online, conducting open houses, and screening prospective tenants.
When it comes to commercial property management, marketing can include working with brokers, showcasing the property to potential business tenants, and negotiating complex lease agreements.
The expectations of residential property management are to keep vacancy rates low and find reliable tenants quickly.
Commercial property managers focus on securing long-term tenants who will use the space effectively for their business operations.
5. Legal Compliance and Risk Management
Ensuring legal compliance is a critical responsibility that all property managers must uphold. Property managers must be well-versed in local, state, and federal housing laws, as well as any regulations specific to commercial properties.
For residential properties, this means ensuring the property is compliant with fair housing laws, safety codes, and eviction procedures.
In commercial settings, property managers need to ensure that the property meets zoning laws, accessibility standards, and other regulations that apply to business operations.
How Much Does a Property Manager make?
The salary of a property manager can vary widely depending on several factors. These factors include:
- Type of property they manage (residential vs. commercial)
- Level of experience
- Location of the properties
- Number of properties they manage
On average, property managers in the United States earn between $50,000 to $75,000 per year. This can go up significantly with experience or if they manage large commercial properties.
Property managers who specialize in luxury residential properties or commercial spaces can even make six-figure salaries.
Some property managers earn bonuses or commissions based on the profitability and occupancy rates of the properties they manage.
How Do Property Managers Get Paid?
Property managers typically earn a combination of a base salary and additional compensation, such as commissions or fees. This extra compensation depends on the number of properties they manage, the scope of their responsibilities, and their performance.
Independent property managers or those running their own property management companies often charge clients a percentage of the monthly rent.
This brings us to the next question: What percentage do property managers take? Most property managers charge between 8% and 12% of the monthly rent as a management fee. For example, if a property rents for $2,000 per month, the property manager would take between $160 and $240 each month.
In addition to the monthly management fee, you might be wondering, “What do property managers charge?” Property managers may also charge additional fees for services outside their typical scope. This could include:
- Handling an eviction
- Conducting an in-depth property inspection
- Managing major renovations.
These extra charges can range anywhere from a flat fee of $100 to $500, or they might take a percentage of the total cost of the project.
This means that how much property management companies make depends on the range of services they provide and how many properties they manage.
What is a Property Management Company?
A property management company is an organization that handles all aspects of managing real estate properties on behalf of property owners.
So, what does a property management company do? They offer a full suite of services to ensure that the properties under their care are well-maintained, tenants are satisfied, and the property owners see a return on their investment.
The main difference between a property management company and a solo property manager comes down to scale and resources. A solo property manager works independently and has a limited number of properties. A management company has more resources and staff. They have the bandwidth to take on more and bigger properties.
Is Property Management a Good Career?
This is a rewarding career path for those interested in real estate, customer service, and problem-solving. So, is property management a good career? Absolutely!
It’s a role that allows you to work with different types of properties, interact with a variety of people, and tackle diverse challenges on a daily basis.
For individuals who enjoy multitasking, building relationships, and have strong organizational skills, property management careers can be both financially and personally fulfilling.
The growing demand for rental properties and commercial spaces ensures that there will always be a need for skilled property managers. That makes it a stable and secure profession.
How to Become a Property Manager
What are the requirements to become a property manager? Generally, you’ll need a combination of education, experience, and a real estate license.
Requirements vary depending on the state and type of property you plan to manage. Most aspiring property managers start by gaining experience in real estate or customer service. They may pursue additional certifications, such as the Certified Property Manager (CPM) designation, to enhance their credentials.
For a detailed guide on how to get started, check out our full article on How to Become a Property Manager.
If you’re organized, enjoy working with people, and have a knack for managing multiple tasks at once, property management is a rewarding career path. With the right qualifications and a passion for real estate, you’ll be well on your way to becoming a successful property manager.
