Are you a Realtor whose confidence in the sales industry was shaken after the landmark National Association of Realtors settlement? Or maybe you’re a real estate newcomer eager to find the best path forward.
No matter your background, property management can be a lucrative and rewarding career choice. People are always going to need a place to live.
What does a property manager do?
Property managers take on the majority, if not all, of a landlord’s responsibilities on their behalf. Their duties include finding and screening tenants, collecting rent, managing arrears, and coordinating repairs.
To make the most informed decision, let’s explore some pros and cons of being a property manager.
PRO: It’s a growing industry
Demand for property management services is on the rise.
In 2023, there were 296,477 property management businesses in the US – an increase of 2.1% from 2022. This growth suggests that more people are recognizing the potential of the industry and jumping in.
A significant driver of said potential is likely the boom in multifamily housing supply, which reached 986,000 units in 2023, the highest since records began in 1970.
As more residential properties come online, so too will more landlords, creating ample opportunities for property managers.
CON: Challenging tenant situations
Even with rigorous screening processes, difficult tenants can sometimes slip through the cracks, causing headaches for property managers, landlords, and other tenants.
In the most severe cases, this can lead to lengthy and frustrating eviction proceedings.
To effectively manage tenant requests, complaints, and disputes, property managers must have strong communication skills and plenty of patience.
PRO: Highly profitable
Property management offers a competitive and flexible pricing model compared to sales.
As at August 12, 2024, the average annual salary for a property manager in the US is $60,705. On top of the base salary, property managers can charge management fees based on a percentage of rental income and often earn extra income from add-on fees and services such as landscaping and consulting.
CON: Irregular hours
Property managers may need to respond to emergencies outside of typical business hours, leading to long days and weekend work.
However, effective delegation and automation can help manage workloads, reduce after-hours stress, and give you more flexibility over when and where you work.
PRO: PropTech makes the job easier
Processes that once took hours or even days to complete manually can now be done in minutes with property management software.
For example, PayProp has streamlined nearly every administrative task, including rent collection, arrears management, maintenance tracking, and reporting – all from one convenient platform.
This increased efficiency frees up time for property managers to focus on building strong, positive relationships with tenants, helping to prevent many of the challenging tenant situations mentioned earlier.
Is property management right for you?
As you can see, property management offers a unique blend of challenges and rewards.
We hope this list of pros and cons helps you make the best decision for your future!
