Are you thinking of starting a real estate management company or embarking on a career in the industry? Real estate experience is useful but not required. Managing real estate may seem easy to someone with little external experience, but it’s actually quite complicated.
What is Property Management?
Property management is the supervision of one or more housing assets, student housing, community associations, or commercial assets. The owner and manager may be the same person, or the property management company may manage the property if the real estate investor does not have the time or experience to manage the property on their own.
What does the property manager do?
Real estate managers take care of and manage buildings and another real estate for individuals or groups of owners. They are classic middle managers who connect landowners and tenants and take care of vacant rental properties. The exact responsibilities of any property manager will vary depending on the specific contract signed with the client.
One of the attractions of managing real estate as a new business is the low barriers to entry. It’s affordable to set up, requires no advanced degree, and allows you to enter the business with little experience.
Some of the most important features of a good property manager are the ability to be properly organized, connect with people, empathize with them, and respond to different types of emergencies. Strong customer service skills are essential because you need to interact with residents and prospects regularly.
A property manager can be responsible for all aspects of acquiring a tenant, including marketing a vacancy, showing vacant units, screening potential tenants, signing leases, and collecting security deposits.
You also need the skills to build positive partnerships with your suppliers, as you need a network of contractors to handle maintenance issues and special requirements. And ideally, homeowners can proactively identify ways in which they can make valuable improvements to their property and save money when needed.
Most of your day-to-day work involves working with homeowners, residents, and contractors, so the ability to communicate and deal with them honestly is important. Property management companies need to be detail-oriented, reliable, independent, and consistent. The owner is outsourcing this task and does not need to participate. A successful property manager is a creative and effective problem solver. Finally, you need a working knowledge of local, state, and federal housing laws and regulations, as well as a basic understanding of finance.
What does the Community Association Manager do?
Like property managers, community association managers oversee properties, but these properties are inhabited by their owners. Owners may or may not live in the units they own, and the entire community is run by owners elected to the association’s board of directors. Board members volunteer to ensure that their community is the best place for residents.
Returning to the beginning, the property manager handles monthly homeowner fee payments, tracks violations, coordinates maintenance as needed, and contacts the board, owners, and more. By doing so, you can support the community association. Although there are self-managed community associations, property managers are a great asset in streamlining communication to help members quit their jobs and help the association run smoothly.
How to become a property manager
Once you decide to join a property management game, it’s easy. Real estate licenses are required in many states. So make sure the state is one of them. Like any new industry you’re entering, you need to start as an entry-level employee and go up your path. Over the years, you can learn inside and outside management, make some valuable connections, and finally focus on starting your own real estate management business.