Have you wondered How Much Do Property Managers Earn? To a large extent, a good life is a matter of the decisions we take.
One of the most important decisions every one of us has to make is the career choice. In this article, we will expound on this topic and reveal how much property managers earn.
Because we will be spending most of our lives working, we must find something we really enjoy doing. However, as work will contain most of our lives, we must consider other things besides our feelings toward our future job.
One of them is the expectations we can have in terms of income and career-making opportunities.
What Does a Property Manager?
To have your first impression of whether this job would be a good fit for you, you surely have some idea what this profession is anyway.
As the word itself suggests, a property manager is in charge of taking care of real estate properties to make sure they meet the conditions required from potential buyers.
Below is a list of only a few tasks of a property manager
Meeting with potential property renters or buyers to show the property
Discuss the terms with them in case of a potential deal
Regularly collect fees from property renters
Keeping a close eye on the market's prices
Prepare financial reports, etc.
How Much Do Property Managers Make?
It isn't easy to make an approximation on how much do property managers make. The reason for that is that we need to consider a few contextual factors (shown below).
However, one can say that property managers are among the highest-paid employees in the real estate industry.
Overall the annual salary of a property manager ranges approximately between $25,000 and $75,000. Notice, however, that this number is an average. Therefore, if you're a very successful property manager, you can earn more than $100,000 per year (NOTE: this is not the net amount of money you'd collect as we've neglected applied taxes).
Here are averaged annual salary expectations for property managers in different parts of the world.
The US $60,000
The UK -$ 45,000
South Africa $18,000
Commonly, property managers collect their earnings in two ways:
1. Fixed income Employees who are paid this way agree on a fixed amount of money given to them monthly. In this case, their income doesn't depend much on how many real estate properties they sell or rent to clients.
Nevertheless, this is not totally rigid as specific bonuses might still be included, and some minimal quotes must be met.
2.Percentage share per deal Another way of getting paid as a property manager is by agreeing on a percentage share for each rent or seal deal.
If your income lies at the bottom of this limit or up above will depend on several factors that we're going to list below and provide some detailed information to them.
What Determines How Much Property Managers Earn?
As already mentioned, there is a range of salaries for property managers. Therefore it would be normal for someone to ask what determines income as a property manager.
Overall, there are a few common factors that largely determine how much do property managers earn.
These factors include:
1.Your Education and Other Qualifications
In principle, a high school diploma is sufficient to enter this market. However, academic qualifications and specific training programs are highly valued in the eyes of employers.
Real estate investors and any property owner willing to hire a property manager looking for individuals that have previously undergone necessary academic education.
For them, this is an essential metric of measuring your intellectual capability to understand your role as a property manager and deliver accordingly.
Nowadays, universities maintain close ties with big industry players to ensure that their skills and knowledge align with what the market needs.
In addition, they offer numerous training programs to prepare future property managers for a smooth transition into the job market.
Also, employers rate high your participation in any relevant training programs that conclude with a particular certification.
Therefore, the higher is your education, the higher the expectations for a high salary. However, this has not to be always the case.
Many people hold few qualifications, but they're talented and still manage to generate a huge income as property managers.
Employers prefer persons who have some relevant experience previously so they can trust their job and bring results. Being this much attractive, experienced property managers set higher salary demands.
On the other hand, individuals that are planning to land their entry-level job in this industry, are paid of course, less as it's difficult for employers to trust them.
However, the best thing about property management is that you can climb the ladder fast and generate high incomes.
3. Local market
This might be something you don't have control over, but it still makes a huge difference. The obvious truth is that the global property managing market is not uniform around the world.
As such, your location will largely determine the amount of money you can earn as a property manager.
For instance, property managers in the USA and Western Europe earn more than in other parts of the world. In addition, there are differences at the national level, but they're not that significant.
To illustrate this, let us consider the case of the US state property managing market. The annual salary for property managers in the US differs from one federal state to another.
In general, the range of annual income of property managers in the US extends from around $40,000 to a little over $100,000.
For instance, in Mississippi, you would earn a little over $40,000 per year as a property manager. In contrast, if you would be working in New York, your annual salary could be up to $110,000.
4.The Company You Work For
The company you work for: As you would easily imagine, property manager salaries vary from one company to the other.
Leading companies that are well-established in this industry do only work with big real estate investors. As such, they only go for contracts worth hundreds of thousands or millions of dollars.
In turn, this accounts for a higher payment rate for property managers than medium or small property management companies.
Therefore, if you aim to collect more money from your job, a workplace in any of these companies would be your goal. However, keep in mind that it's not that easy to land a job there without proving yourself in this area.
Where Do Property Managers Earn The Most?
As already mentioned, the national market you're employed into is among the main determining factors of your annual income as a property manager.
The US has the largest and strongest property management. Currently, its worth is estimated to be around $48 billion.
Europe is another region where property managers are paid particularly high. Among European countries, Germany, the UK, and France are proud of having significantly large property management markets.
That said, if you want to earn the most as a property manager, you should try to get a job in any of these regions, in particular the countries mentioned.
Today, globalism is not that hard to switch to another market despite inevitable bureaucratic procedures.
Employers are always open to foreign candidates as well who do excel with their CVs.
Therefore if you already have enough experience and want to find a higher-paid position as a property manager elsewhere, you can easily apply for vacant positions abroad.
Additional Earnings For Property Managers
A fixed monthly or annual income is not the only source of income for a property manager. Usually, property managers earn additional bonuses on top of their regular wages.
Typically, there are no average estimates or any common standard for how much these bonuses actually are.
However, you can expect between 5 to 10% of a signed deal to account for extra earnings. In principle, this will vary according to your job's contract details and deal terms with your client.
For instance, if you manage to sell or rent a real estate unit that the owner was particularly struggling to succeed with, you can expect relatively high bonuses.
In addition, if you meet certain annual targets set by your company, you'll collect a specific percentage share for every deal beyond it.
Finding a job, you like doing and generating a high income is very important. However, the future perspective of it is equally that important.
Many jobs are highly demanded at times but very unstable in the long term. When you pick up a job for yourself, you always want to make sure that it has some potential to maintain its relevance for enough time in the future.
Fortunately, the market for property managers is one of the most stable and largest real estate sectors. Based on some reliable data, the property management market will grow up to about 22 billion dollars by 2023.
Also, the US market will account for most of this growth.
Even if we ignore numbers, it is obvious that investors and property owners will always need to rely on professional individuals who can bring the highest profit from their property.
Thus if you decide to make a career in this industry, you can expect a quite bright future.
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