Property management is one of the major roles in the real estate industry. Owning a property management company means that you will be handling all aspects of the maintenance and management of one or more rental properties on behalf of the owners. It will also be your job to help to maximize property returns. As the property manager, you will oversee all the day-to-day operations of the rental property or properties and be a liaison between landlords and tenants. Your role is to ensure that the rental properties are running smoothly and profitably.
But what exactly does a property manager do? Let’s look at some of the duties of a property manager.
Duties of a Property Manager
The job of a property manager is very diverse. Although the specific day-to-day tasks will differ, their responsibilities may include the following:
- Advertising the rental property
- Showing units to potential tenants
- Screening prospective tenants
- Negotiating leases
- Handling tenants
- Collecting rent and late fees
- Maintenance and repair of the building
- Evicting tenants who have violated the terms of their lease
If you are looking for a career in real estate, becoming a rental property manager can offer a good opportunity for you. With the increase in rental properties, there is a need for good property managers out there. There are many landlords who own multiple investment properties but can’t manage them themselves because they live in a different state, don’t have the time or expertise, or simply don’t want to be involved with all the work that comes with owning rental property.
If you are considering starting a rental property management company, it’s important that you do your research to know if a career in property management is right for you. Owning a property management company has several benefits and drawbacks which you need to be aware of before you decide to pursue this career.
Pros of Owning a Property Management Company
1. It’s a relatively easy field to enter
Property management is a business that can be started with very little upfront capital. This is because it is principally a people-oriented service that doesn’t need a physical office, expensive equipment, or merchandise.
2. It’s a growing career field
Generally, there is a high demand for property management across the US real estate market as investments in rental properties increase. This provides property managers with a lot of opportunities.
3. You can earn a fairly good salary
One of the main advantages of owning a property management company is the potential for high earnings. Depending on the location, the value and number of rental properties you manage, the services you offer, your educational qualifications, and experience, you can make some good money.
Learn More: How Much Do Property Managers Make?
4. It’s never boring
Another advantage of owning a property management company is that you will never get bored. Every day you will be working in different locations, doing a wide variety of tasks, and meeting people with different backgrounds. If you don’t like to be stuck in an office all day or follow the same routine daily, then this could be a good career path for you.
5. You learn essential real estate skills
Running a successful property management company will give you valuable experience in real estate since you will be working with various investment properties and people. The skills you learn by being active in the real estate market will help you become a good real estate investor if you decide to.
Cons of Owning a Property Management Company
1. Managing different kinds of real estate and people can be challenging
Owning a property management business can be a tough occupation because you will be managing different kinds of rental property and people. This means that the role of a property manager can be extremely varied. Every investment property you manage will have its unique challenges depending on the type, size, location, etc. You will need to learn several skills to be able to handle a wide range of tasks.
2. High competition
In today’s competitive marketplace, it can be difficult to be successful as a beginner property manager if you don’t find a way to stand out. There are many established property management companies competing against you. However, with a good property management marketing plan, you gain an edge over the competition.
You can attract new property management leads and grow your business in the following ways:
- Create a website for your property management company
- Make sure you have good online reviews by ensuring customer satisfaction
- Use Google ads
- Advertise on social media and be active
- Content marketing
- Network with people who can refer business your way like real estate agents and money lenders
- Create and give out business cards
- Make sure that your fees are reasonable depending on the services you offer and what your competitors are offering
3. Hiring and maintaining quality staff can be challenging
Property management has extremely varied roles, which you can’t do all alone. You have to liaise with several other people with a wide range of skills. The success of your property management company will depend on the quality of your property management team.
Therefore, you need to be careful when hiring new employees. Make sure they are qualified and dependable. You can even offer them more relevant training to boost their performance. Also, try to keep your staff motivated by maintaining good communication with them and listening to their needs.
4. The work is usually very demanding
As a property manager, you will be constantly dealing with tenants and their needs and complaints. You may even be needed to deal with emergencies at odd hours. Not everyone may be able to handle this kind of work. If you can’t be available every time a tenant wants your assistance (within reason, of course), owning a property management company may not be for you.
5. Possible conflicts
Rental property owners and tenants who are unsatisfied with your services can sometimes be impatient and even disrespectful. In cases where rental property owners or tenants are abusive and aggressive, being able to handle the situation in a calm and professional manner is critical to your success. You can’t always avoid conflict, but how you handle it is what matters. Maintaining good communication between you and your property management clients and tenants will help to build strong relationships and effectively prevent conflicts.
The Bottom Line
Every career usually has its ups and downs, which you need to understand before getting into it. Even though owning a property management company can be very rewarding, there are some drawbacks too. Not everyone will consider being a property manager a good career choice for them. However, if you feel that the pros of running a property management business are bigger than the cons, it may be worth trying. Go for it!
If you decide to become a property manager, be sure to use Mashboard to search for new rental properties for property management clients.
To learn more about how Mashvisor can help you find profitable investment properties for your clients, schedule a demo.