Are you interested in hiring a property manager but don’t know where to start? Important details like property manager salaries are essential to know before you hire a professional to manage your rental property. If you’re curious about the average property manager’s salary and what exactly they can do in the realm of property management, then you’ve come to the right place!
In this article, we’ll explore what property managers do, what qualifications they need to obtain this role, as well as their average salary, and if it is worth hiring a property manager for your rental properties. As you’ll discover, property management can be a lucrative path and impacts the efficiency of any real estate endeavor.
What Does a Property Manager Do?
One of the first questions tenants and property owners often have is what a property manager actually does. In short, they do several necessary tasks to help with rental property management. Without this crucial person in your property management company, you might struggle with tenant issues as a real estate investor or landlord.
Let’s take a look at the specific responsibilities you typically delegate to a property manager:
- Tenant Management: These individuals are often tasked with collecting rent, preparing and sending lease agreements, and managing security deposits. They handle any and all tenant issues to ensure smooth property management over time.
- Property Maintenance: If you have a rental unit that requires maintenance, then the property manager in your management company will be tasked with facilitating or delegating repairs, inspections, and managing contractors for your property.
- Administrative Duties: In addition to tenant issues and repairs, property managers are also involved in the essentials: billing, record-keeping, and compliance, so your rental property stays on the path to further success.
Property managers are necessary if you want to see success with your property management company, and they help current and prospective tenants with issues they might face. However, what does it take to become a property manager? Let’s look at that next!
What Qualifications Do You Need to Become a Property Manager?
For those who want to become a property manager, a few qualifications or requirements must be met. For starters, having a business or real estate degree could be helpful if you want to work in property management services. Fortunately, you only need a high school diploma in most cases.
Having some experience in real estate, even in other roles like assistant property manager or leasing agent, is another nice-to-have qualification that can make property management easier to transition into. However, in many states, you must have a real estate or property management license to manage these properties legally. This typically involves completing a course, taking an exam, and fulfilling the state’s criteria.
As far as certifications, you don’t have to have any specific certification, but there are many you might consider. Becoming a Certified Property Manager (CPM) is recognized globally and is highly desirable by many property owners.
You might also consider becoming a National Apartment Leasing Professional (NALP) or Residential Management Professional (RMP) or pursuing your real estate broker license, which allows you to complete property transactions and other tasks.
If you want to learn how to be a good property manager, you must first develop your soft skills. This means having great communication and interpersonal skills and excellent problem-solving abilities.
Being able to manage time and use property management software like TenantCloud is also a plus. Additionally, many hiring teams and property investors will want you to know landlord-tenant laws and federal fair housing regulations, too.
If you have all of these qualifications—and even some of the nice-to-haves—you can find a great job as a property manager for a rental property. Not only that but many property managers get paid reasonably well across the country.
How Much Do Property Managers Make?
There is no definitive salary set for all property managers, but according to ZipRecruiter’s salary data, the average property manager salary starts at $58,335 annually. That’s roughly $28.05 per hour! However, it will depend on where you live. The lowest property manager salary reported is $28,000, and the highest is $96,500.
In Soledad, California, property managers were paid an average of $87,263, which is nearly 50% above average. However, in Florida, the average property manager was receiving $58,333 per year, which is similar to the average nationally. It all depends on where you live and your experience. In some cases, you might be able to receive more of a salary.
Yet, it’s important to remember that property managers are not just limited to their salaries. They also receive commissions and bonuses. There is a base salary and a fee structure that is set by the company they work for. So, if you live in a state where the salary might be lower, don’t forget you could receive additional bonuses beyond this base pay.
What Factors Influence Property Manager Salaries?
The factors that influence a property manager’s salary are the same as those for other industries: location, experience, and, of course, demand and competition. However, property type is also a factor when determining the base salary.
If you live in a state like California or New York, you will likely pay higher than the average salary for your property managers. With commercial properties, you may also pay higher property management fees. Your team’s salaries definitely depend on the property type!
However, you must also consider the demand and competition among property management companies. Your investment property might pay more than the listed salary data if you’re in an area with high competition. As a real estate investor, it’s important to note all of these factors before you hire and agree upon a base salary and a fee structure.
How Can Property Managers Increase Their Salaries?
Property managers who want to increase their salaries can do a few things. First, while not required, becoming a Certified Property Manager (CPM) can boost property managers' salaries.
For real estate investors or property management companies, it’s also essential to adapt to market demands and trends, which might increase the salaries at your management company. Additionally, taking on another residential property or commercial property can also increase how much you charge as a property manager.
How Much Do Property Managers Charge?
Property management fees are usually around 8% to 12% of the total monthly rental income if you hire residential property managers. Otherwise, they may use a fee structure or fixed monthly fees. If you’re unsure what property managers charge, you can always contact a local company to see what their fees are.
There are also other fees you might be subject to, including tenant placement fees, leasing fees, vacancy fees, lease renewal fees, and even a maintenance fee. Property management costs do differ depending on whether you have a residential or commercial property. In general, it will depend on the size, location, and property type.
Is Hiring a Property Manager Worth It?
When it comes down to it, hiring a property manager as a property owner is worth it! Your investment property deserves a professional property manager or property management firm to help improve your rental experience. These professionals can aid you in saving time, reducing your stress, and maintaining compliance as a landlord.
However, there are some downsides, namely the management fee and property management cost you incur. Ultimately, it is worth considering for your company if you want reduced stress and happier tenants.
Try TenantCloud Today to Boost Your Property Management
If you want to enhance your rental property management services, TenantCloud can be an exceptional tool. Designed to assist landlords, property managers, and real estate professionals, your team will have a suite of tools to help them streamline tenant communications, maintenance requests, rent collection, and reporting.
With the ability to automate and centralize your tasks in one location, TenantCloud is a must if you want to see success for your property management company. From potential tenant screening to accounting features, our platform can be the game-changer you’re looking for. Try TenantCloud today with a free trial to see how it can support your workflow and enhance your business success!
