Do you wonder what the people who manage properties earn? Perhaps you’re wondering which real estate careers are the most lucrative or how you can break into the industry. Either way, if you’re curious about property management salaries, you’re in the right place.
This article highlights property management salaries and gives valuable tips on how to earn more money.
How much does a property manager earn?
A property manager is a real estate professional who oversees a rental property’s operational running. Their job description usually entails attending to tenant complaints, supervising repairs, conducting routine inspections, and collecting rent. In some instances, they might also be responsible for finding new tenants, conducting screening, and evicting residents if necessary. They are an integral part of the real sector because they assist absentee landlords in running their businesses and help satisfy tenants.
For all their efforts, the average property manager’s salary is over $100,000 a year, according to salary.com. Although the range is about $94,000 – $124,000. That means they make about $52 per hour, which is a decent amount of money. Unfortunately, there’s no consensus on how much property managers earn. According to ZipRecruiter, their average annual income stands closer to $47,000. That’s less than half of salary.com’s estimation. It’s more likely that the true figure resides somewhere between both.
Of course, we can say with certainty that a property manager’s salary depends on several factors. For example, a better education, additional certification, years of experience, and better negotiation skills can help you earn significantly more than your peers.
Besides your skills and qualification, property management salaries could also be a function of the state you live in. When you consider the cost of living, Oklahoma, Georgia, and Virginia come out as the top three states with the highest salaries. On the other hand, Idaho, Hawaii, and South Dakota were the bottom three.
Also Read: 9 States With No Income Tax
How to earn more as a property manager
If you’re not satisfied with what you currently earn, there are many clever techniques you can use to noose your property management salary. Here’s how:
Charge higher rent
One of the most straightforward strategies to earn more as a property manager is to increase the rent. Since the increment increases the property’s profit margin, that means more cash in the wallet, especially if your contract stipulates that you earn a specific amount on the rental’s returns.
However, you have to be cautious when stepping up the rent. If the increment is too high, tenants might get the perception that you’re greedy and move out of the apartment. But if the change is within reason, many of them will be willing to accept the increase. After all, keeping up with inflation means businesses have to keep increasing their prices to avoid running at a loss.
If you’d like the increment to go down easier, work on adding value to your properties first. Tenants would be more accommodating when making functional upgrades or repairs because of the added worth. It would be best to focus on upgrades with a high ROI. Of course, before making a significant decision like that, you have to run it by the landlord first.
Lower your expenses
The alternative to charging a higher rent is lowering your expenses, or perhaps the adjunct as this can increase property management salaries. If you can reduce the amount of money you require to run the property, you can save more money. Start by eliminating unnecessary expenses that add no value to your team or the residents. For example, are you currently paying for a newspaper magazine that no one reads? If so, why not cancel it and save a couple of bucks per month.
Another way to lower your expenses is to prioritize maintenance. Maintenance consists of a large chunk of most properties’ expenses, so you can increase your yield if you can find a way to reduce it. Leasing your space to well-behaved tenants and conducting routine inspections can reduce the need for repairs.
Besides cutting back and prioritizing maintenance, you could also make upgrades. While that sounds counter-active, some upgrades help you save money in the long run. For instance, swapping to energy-efficient light bulbs reduces your utility costs.
Fill up vacancies
Vacancies are a common phenomenon in the real estate industry. Most experts recommend budgeting for at least two months of vacancies in a year if you don’t want to run at a loss. Although while being proactive is essential for success, you don’t have to accept that resolve. So roll up your sleeves and find a way to increase your leases as this can help increase property management salaries.
Undoubtedly, technology is a great helper. Leverage tools such as video editors to make imaginative recordings and lean on online sites to advertise your listings. Don’t forget to use the power of social media to your advantage with well-timed posts and relevant hashtags.
Further your professional development
As highlighted earlier, several factors influence a property manager’s income. While you might not do much about your location, you could easily upgrade your education, certification, and experience level. You could get a college degree in property management or opt for a short professional certification course. You could feel more confident going into the negotiation room when you have more knowledge and a fatter resume to back it.
Become a landlord
Finally, if you’d like to earn more money, you should consider owning property yourself. After all, becoming a landlord is another profitable real estate path, and with your experience managing your property would be a breeze. Besides, you get to keep 100% of the profits after deducting taxes and other expenses.
It’s hard to put the finger on property management salaries and property managers’ income, but they have one of the most lucrative careers in the industry. Considering how profitable real estate is, a career in this field will undoubtedly earn you some bread.
Despite that assurance, you can always find a way to increase your income. It might be through managing your properties more efficiently, gaining more experience while working for a top Washington DC property management company, or becoming a landlord.
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