Becoming a traditional or Airbnb property manager is one of the best ways of making good money in real estate. According to salary.com, the median property manager salary in the United States is $98,442. The salary ranges widely depending on factors such as property management certifications, education, number of years in the property management industry, and additional skills gained. Becoming a property manager is, therefore, a very lucrative career path worth pursuing.
Related: How Much Do Property Managers Make?
But, if you find that you’re making much less than the median (or that the median salary simply isn’t enough for you), there are many ways that you can increase your income. Here is how a property manager can make more money:
1. Increase the rent
It is true that raising your rent could result in the loss of tenants and thus higher vacancy rates. However, maintaining constant rent for a long time will only limit your growth. In addition, inflation will catch up with you in the long run. If you handle the process strategically and systematically, it is possible to increase your rent roll, and still retain your tenants. Charging higher rents will mean making more money as a property manager.
Look at similar rental properties in your area (rental comps), property appreciation rates, standard inflation rates, and legislation on rent increments. For example, some cities and states don’t allow a rent increase within the first year of a month-to-month tenancy.
To learn about the best ways to inform tenants of a rent increase and more tips, read: Raising Rent Without Losing Tenants: 6 Tips for New Landlords.
2. Manage multiple rental properties
You can make more money as a property manager by adding more properties to your portfolio. Property management clients usually pay their property managers about 10% of the rent collected as their fee. Managing several rental properties will mean having different streams of income as a property manager.
The best way to quickly grow your property management portfolio is by using a tool like Mashboard. Mashboard helps you match your current clients or leads to the perfect investment property for sale with 90% accuracy. You can then share a branded Property Analysis Report with rental income estimates and return on investment calculations- a report that is sure to get them to make a purchase and put you in charge right away! Finding rental properties for sale for your clients has never been so easy.
However, it is easy to get overwhelmed when managing multiple properties. This is why it is crucial to hire the right employees when starting a property management company. Your team will help oversee the properties and keep your company profitable.
3. Leverage technology
The tasks involved in being a successful property manager can be very time-consuming and stressful. The good news is that property managers and property management companies can use technology to boost their productivity and stay ahead of the competition. Dealing with communication issues, repairs, evictions, and payments is now easier thanks to property management tools available in the market. Using such digital tools, you can easily manage multiple rental properties anywhere in the world from the comfort of your house. All you need to make use of these technologies is a smartphone or computer.
Related: 10 Technology Tips for Property Managers
4. Offer additional services
You can make more money as a property manager by offering your tenants additional paid services. Since your tenants will need to clean their clothes, consider running a coin-operated laundry machine. If the service is excellent, your tenants will not bother going out to look for a commercial laundromat. Other ways of making money as a property manager are by offering services such as house cleaning, courier, and extra security.
You can also try providing additional services to your property management clients. Check out what the local competition is offering in terms of services. What is missing? What more do rental property owners need from their managers? Perhaps there aren’t many property management companies helping with the process of filing property taxes or providing consultation on rental property tax deductions. Figure out what you can offer that property owners will be willing to pay extra for.
5. Cut down expenses
The higher the expenses incurred with an investment property, the lower rental yields will be. Therefore, to make more money as a property manager, you must lower the costs of running your rental homes. You can do this by carrying out regular inspections to prevent small maintenance problems from getting worse. Hiring efficient contractors for repairs and renovation will also help you lower your maintenance costs. Finally, finding great tenants and retaining them will minimize vacancy rates.
Related: Being a Property Manager: 7 Ways to Reduce Risk
Besides cutting down on rental property expenses, you should also review your property management business. Where can you save money? Cut down any costs that won’t hurt the productivity of your team or your bottom line, but rather those that will help you make more money as a property manager.
6. Get a real estate agent license
Getting a real estate agent license allows you to make commissions by helping people find investment properties to buy. Some of your clients could be the same people that are living within the properties you are managing. Therefore, be sure to build a strong rapport with your tenants and stay in touch even when they move out. And don’t forget to use Mashboard to find the perfect rental properties for them. A real estate license + Mashboard= more money for you.
Sign up now to Mashvisor to access Mashboard.
7. Add value to rental properties
Adding value to a rental property will make it easier to attract and retain tenants, as well as allow an increase in rental rates. You can boost the value of a rental property by furnishing it or upgrading household appliances such as the heater, air conditioner or dishwasher. Updating old lighting fixtures, applying a fresh coat of paint, restoring the flooring or adding an extra room are other great ways of sprucing up your rentals. Be sure to run all of this by the rental property owner who will have to pay for upgrades. However, be sure to frame it as forced appreciation and outline how it will benefit them and their rental property business in the long run.
8. Market effectively- both to tenants and to clients
As a property manager, it is your responsibility to advertise your rental properties in order to attract more tenants. Consider using multiple marketing strategies in order to reach as many potential tenants as possible. For instance, you could post a yard sign, advertise on Craigslist, and ask current tenants for referrals. Your online ads should be interesting and detailed in order to attract high-quality tenants. Be sure to include the price, a map, relevant keywords, and high-quality photos. Don’t forget to leverage social media platforms such as Facebook, LinkedIn, and Twitter.
In addition to filling vacancies, you need to work on generating property management leads. Make sure you have a professional website set up. You may want to consider getting professional help to ensure you have a user-friendly site that is also SEO optimized. The better your property management website, the more leads you can generate, and the more money you can make.
9. Get more property management certifications
Earning more property manager certifications will boost your credibility and give you an edge over the competition. With that, you can charge more for the services you offer.
Here are some certifications offered by accredited real estate bodies:
- Certified Manager of Community Associations (CMCA)
- Residential Management Professional (RMP)
- Master Property Manager (MPM)
- Certified Support Specialist (CSS)
- Certified Residential Management Company (CRMC)
- Certified Property Manager (CPM)
- Certified Apartment Manager (CAM)
10. Buy your own investment properties
Buying your own rental investments is one of the best strategies to make more money as a property manager. This allows you to earn a decent passive income while still managing the properties of other real estate investors. With your experience in property management, you can make your rentals the best in the neighborhood. You will know how to boost your occupancy rates and increase your revenues.
These are just a few ideas on how a property management company can make more money. With the rapid developments in the real estate market, there are many other strategies for earning more money. Keep doing more research and updating your strategies to keep up and to increase your income.