What Does a Real Estate Manager Do?
A real estate manager's primary function is to be the face of the property owner, especially for absentee proprietors or those that choose to remain aloof from their tenants for whatever reason. Many times a property manager will be the only person of authority tenants will ever see. As such, their roles are vitally important in the rental industry.
Real estate management is responsible for many facets of the rental property. Below you will find a list of some of the responsibilities of a property manager.
- Collect rent and deposits
- Take care of maintenance issues
- Advertise vacancies
- Do background and credit checks on potential tenants
- Checking out complaints and neighbor issues especially in apartment complexes
Further eviction proceedings are normally a legal matter and must be done by a licensed attorney. Many times a property management team will have a lawyer on retainer or as part of the team.
Each part of the real estate manager's job requires a different skill set. They are responsible for the financial solvency of the rental property. Take for instance the property manager responsible for a large medical building over several years. Not only must they collect the rent but also they must insure proper insurance and compliance by tenants. Bringing all these aspects of financial management together takes a person with good business sense.
Maintenance issues can become a real headache in a hurry. To manage this properly, real estate property managers should have a good working relationship with tenants and contractors. A good relationship does not mean you are a push over, it simply means you are fair but firm. You will save yourself tons of time by cultivating these relationships.
Education Requirements
Many states require that anyone in real estate management be a licensed broker if they are collecting rent, advertising property or negotiating leases on behalf of the property owner. Some areas allow licensed real estate salespeople to be property managers but they usually must work directly beneath a real estate broker. Most of these states will have an online public license search for anyone holding a real estate sales or brokerage license. A few states do not require any type of licensing for real estate management; Idaho and Washington are two of these. States that do not require real estate licensing will require that the manager register with the state.
It is important to realize that even if your state does not require licensing a potential client may. When it comes to large real estate holdings owners will want to ensure you have the business and managerial skills to keep their property profitable. Several institutes offer certification in property management.
Institute of Real Estate Management offers courses that will result in you becoming a certified property manager or CPM. The courses are geared to making you the best real estate management professional. The following are some of the skills you will work on:
- Property Analysis
- Tenant Relations
- Managing Commercial Property
- Leases
- Forms and Administration
- Legal Issues in Property Management
- Marketing
- Economics of Property Management
- Apartment Management Operations and Procedures
- Systems and Reports
Potential Earnings
The possible earnings for this job market vary according to location and types of real estate you are qualified to manage. The median income of the average real estate manager was 40,000 dollars, however for retail real estate management the median income jumped to over $100,000 per year. Again, this will be highly dependent upon your location and the amount of experience you have. The more experience you have the larger percentage of rental income you can request.
Job Outlook
Although there is much debate about the economy and the housing market crash the rental market is still going strong. In fact, through these tough times this is one industry that may grow.
According to the US Department of Labor Statistics, the real estate and community association manager's positions are expected to grow faster than expected. 15% growth is expected, which is faster than all occupations.
Some of the expected growth in this industry will be from added properties and owners recognizing the need of professional management to increase profitability and resell value of their property. A property with a great real estate manager will sell for significantly more.
In addition to growth of existing units, there is also an expectation that current managers will move into other fields or leave the labor force in favor of retirement. It will not be long before the nations baby boomers are leaving the workforce.
Elderly tenants will also be on the rise over the next several years, leading to a need for more assisted living and nursing facilities, all of which will require skilled real estate management.
Conclusion
Overall, this looks to be a profitable career choice for many years to come. The US Department of Labor Statistics advises that the best opportunities will be for college graduates with a degree in business administration, real estate or related field. Considering the increased need for assisted living and nursing units a person with additional experience managing a nursing unit will be in high demand.
