Property management is a career field which offers great opportunities. This however does not make it easy. You need to be a go getter and someone who does not give up easily.
Property management is not for the faint of heart, but if you’ve got what it takes it can be a lucrative and rewarding career path.
Check with your local and state regulations. Many states require a real estate or property management license in order for you to manage residential or commercial property. The classes required to take for licensure are typically offered on weekends or late afternoon for your convenience.
After you have passed the state exam, if required, you will want to set up your means of communication. You will need a phone line, whether a cell phone or land line. You will also need a computer with internet access, a printer and fax machine.
As a property manager one of your main responsibilities is to ensure the landlord gets their rent. This should also be in good time. Your work included setting, adjusting and collecting rent.
Responsible for Rent
Property managers are responsible for setting the initial rent level, collecting rent from tenants and adjusting the rent.
Setting Rent- the property manager knows how to set the right rent level to attract tenants to your property. They have an understanding of the market where the property is located and have looked at comparable properties in the area.
Collecting Rent- they play the role of the enforcer. They ensure optimal cash flow by setting a date to collect rent each month and strictly enforcing late fees.
Adjusting Rent- the property manager can increase the rent by a fixed percentage each year, according to individual state and/or municipal law. They can also decrease the rent if they deem necessary.
Success will not come on a silver platter. There are some very tough questions that you have to answer in order to get properties to oversee. Most landlords do not like the idea of leaving their property in inexperienced hands.
The first thing I always want to know is how many properties (units is a better measure) are they managing. This is followed up with how many employees are managing these units. Here is what I have found based on our experience building our property management capability internally and then handing the entire portfolio over to property managers: a trained employee with the right tools and proven processes can manage between 30 and 40 units – assuming the accounting function is not included. So, if you are qualifying a property manager and they have no employees and are currently managing 37 units and you want to hand them 7 more, how good do you think their service to your portfolio will be?
Do they own any rental properties themselves? For me this can be a deal breaker! Here is what I have experienced: while it may seem like a benefit for a manager to own properties because they can better relate to what an investor experiences, I see it differently. The way I see it is my properties and my tenants are in constant competition with the managers and their properties. If the manager has a vacancy at the same time you do, how can you know that your property will be filled first? You don’t!