Becoming a traditional or Airbnb property manager is one of the best ways of making good money in real estate. According to salary.com, the median property manager salary in the United States is $98,442. The salary ranges widely depending on factors such as property management certifications, education, number of years in the property management industry, and additional skills gained. Becoming a property manager is, therefore, a very lucrative career path worth pursuing.
Related: How Much Do Property Managers Make?
But, if you find that you’re making much less than the median (or that the median salary simply isn’t enough for you), there are many ways that you can increase your income. Here is how a property manager can make more money:
1. Increase the rent
It is true that raising your rent could result in the loss of tenants and thus higher vacancy rates. However, maintaining constant rent for a long time will only limit your growth. In addition, inflation will catch up with you in the long run. If you handle the process strategically and systematically, it is possible to increase your rent roll, and still retain your tenants. Charging higher rents will mean making more money as a property manager.
Look at similar rental properties in your area (rental comps), property appreciation rates, standard inflation rates, and legislation on rent increments. For example, some cities and states don’t allow a rent increase within the first year of a month-to-month tenancy.
To learn about the best ways to inform tenants of a rent increase and more tips, read:Raising Rent Without Losing Tenants: 6 Tips for New Landlords.
2. Manage multiple rental properties
You can make more money as a property manager by adding more properties to your portfolio. Property management clients usually pay their property managers about 10% of the rent collected as their fee. Managing several rental properties will mean having different streams of income as a property manager.
The best way to quickly grow your property management portfolio is by using a tool like Mashboard. Mashboard helps you match your current clients or leads to the perfect investment property for sale with 90% accuracy. You can then share a branded Property Analysis Report with rental income estimates and return on investment calculations- a report that is sure to get them to make a purchase and put you in charge right away! Finding rental properties for sale for your clients has never been so easy.
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However, it is easy to get overwhelmed when managing multiple properties. This is why it is crucial to hire the right employees when starting a property management company. Your team will help oversee the properties and keep your company profitable.
3. Leverage technology
The tasks involved in being a successful property manager can be very time-consuming and stressful. The good news is that property managers and property management companies can use technology to boost their productivity and stay ahead of the competition. Dealing with communication issues, repairs, evictions, and payments is now easier thanks to property management tools available in the market. Using such digital tools, you can easily manage multiple rental properties anywhere in the world from the comfort of your house. All you need to make use of these technologies is a smartphone or computer.
Related: 10 Technology Tips for Property Managers
4. Offer additional services
You can make more money as a property manager by offering your tenants additional paid services. Since your tenants will need to clean their clothes, consider running a coin-operated laundry machine. If the service is excellent, your tenants will not bother going out to look for a commercial laundromat. Other ways of making money as a property manager are by offering services such as house cleaning, courier, and extra security.
You can also try providing additional services to your property management clients. Check out what the local competition is offering in terms of services. What is missing? What more do rental property owners need from their managers? Perhaps there aren’t many property management companies helping with the process of filing property taxes or providing consultation on rental property tax deductions. Figure out what you can offer that property owners will be willing to pay extra for.
5. Cut down expenses
The higher the expenses incurred with an investment property, the lower rental yields will be. Therefore, to make more money as a property manager, you must lower the costs of running your rental homes. You can do this by carrying out regular inspections to prevent small maintenance problems from getting worse. Hiring efficient contractors for repairs and renovation will also help you lower your maintenance costs. Finally, finding great tenants and retaining them will minimize vacancy rates.
Related: Being a Property Manager: 7 Ways to Reduce Risk
Besides cutting down on rental property expenses, you should also review your property management business. Where can you save money? Cut down any costs that won’t hurt the productivity of your team or your bottom line, but rather those that will help you make more money as a property manager.
6. Get a real estate agent license
Getting a real estate agent license allows you to make commissions by helping people find investment properties to buy. Some of your clients could be the same people that are living within the properties you are managing. Therefore, be sure to build a strong rapport with your tenants and stay in touch even when they move out. And don’t forget to use Mashboard to find the perfect rental properties for them. A real estate license + Mashboard= more money for you.
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7. Add value to rental properties
Adding value to a rental property will make it easier to attract and retain tenants, as well as allow an increase in rental rates. You can boost the value of a rental property by furnishing it or upgrading household appliances such as the heater, air conditioner or dishwasher. Updating old lighting fixtures, applying a fresh coat of paint, restoring the flooring or adding an extra room are other great ways of sprucing up your rentals. Be sure to run all of this by the rental property owner who will have to pay for upgrades. However, be sure to frame it as forced appreciation and outline how it will benefit them and their rental property business in the long run.
8. Market effectively- both to tenants and to clients
As a property manager, it is your responsibility to advertise your rental properties in order to attract more tenants. Consider using multiple marketing strategies in order to reach as many potential tenants as possible. For instance, you could post a yard sign, advertise on Craigslist, and ask current tenants for referrals. Your online ads should be interesting and detailed in order to attract high-quality tenants. Be sure to include the price, a map, relevant keywords, and high-quality photos. Don’t forget to leverage social media platforms such as Facebook, LinkedIn, and Twitter.
In addition to filling vacancies, you need to work on generating property management leads. Make sure you have a professional website set up. You may want to consider getting professional help to ensure you have a user-friendly site that is also SEO optimized. The better your property management website, the more leads you can generate, and the more money you can make.
9. Get more property management certifications
Earning more property manager certifications will boost your credibility and give you an edge over the competition. With that, you can charge more for the services you offer.
Here are some certifications offered by accredited real estate bodies:
- Certified Manager of Community Associations (CMCA)
- Residential Management Professional (RMP)
- Master Property Manager (MPM)
- Certified Support Specialist (CSS)
- Certified Residential Management Company (CRMC)
- Certified Property Manager (CPM)
- Certified Apartment Manager (CAM)
10. Buy your own investment properties
Buying your own rental investments is one of the best strategies to make more money as a property manager. This allows you to earn a decent passive income while still managing the properties of other real estate investors. With your experience in property management, you can make your rentals the best in the neighborhood. You will know how to boost your occupancy rates and increase your revenues.
These are just a few ideas on how a property management company can make more money. With the rapid developments in the real estate market, there are many other strategies for earning more money. Keep doing more research and updating your strategies to keep up and to increase your income.
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Charles Mburugu is a HubSpot-certified content writer/marketer for B2B, B2C and SaaS companies. He loves writing on topics that help real estate investors and agents make better choices.
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A property manager needs to be able to listen and communicate, as well as be proactive and involved, current and knowledgeable. He or she should also be levelheaded and resourceful, personable and articulate. For all the property managers diligently trying to excel, the list of "and's" goes on and on.How do I succeed in property management? ›
- Make communication a core competency. ...
- Successful property managers do not procrastinate. ...
- Get up to speed and stay current on all things related to property management. ...
- Positive attitude. ...
- Develop a system to find the right tenant. ...
- Be a forward thinker. ...
- Have a long-term strategy and set goals. ...
- Be decisive.
Property management can be a very lucrative business; not because it is easy, far from it, but because there are multiple ways to make money from a single property. Some management companies charge a flat fee, while most charge a percentage of the collected rent — usually between 7-10% of the rent amount.What do property managers struggle with? ›
Finding and Keeping New Tenants
The most difficult aspect of any property manager is finding new tenants and keeping them at the property for the long haul. They have to learn marketing strategies and become good at them.
There's a lot to love about working in the property management industry, but the job can also be pretty stressful and emotional. We hear it all the time: property management burnout is real, and it takes a toll on your business.What are the cons of being a property manager? ›
Con: Managing a Rental Property Requires Constant Attention
Every property differs from the other. Tenant issues range depending on the tenant. Whether you're self-employed or work for a property management company, there is a long list of tasks. Be prepared for off-duty tasks or dealing with emergencies as well.
The executive property manager may oversee an entire department of property managers, regional managers, or maintenance staff, and often is an intermediary between the owner of the property and the property managers assigned to that client.What are three duties of a property manager? ›
Property manager responsibilities include setting and collecting rent, handling maintenance requests, filling vacant units and potentially setting the budget for the property. Property managers often take care of property that real estate investors either do not live near or do not wish to personally manage.What is the most important role of a property manager? ›
One of the most important roles of a property manager is being responsible for all tenants within the property. A property management company is known as a third party explicitly hired to handle daily operations of real estate investment.
- Improve the Properties Your Currently Manage. ...
- Prioritize Tenant Retention. ...
- Invest In a Strategic Marketing Plan. ...
- Set Goals (and Stick to Them) ...
- Embrace Networking. ...
- Grow Your Business With Insights From a Property Management Coach.
The most common challenge faced by property managers is poor time management. Handling maintenance requests, communicating with tenants, and conducting inspections can fill up a property manager's day leaving no time for the twenty other things that need to get done.What is one of a property manager's most successful marketing tactics? ›
SEO is one of the most effective property management marketing techniques. It is a process of boosting your website's online presence to enhance its rankings in search engines like Google. Not only that, but when your site ranks high, conversions and revenue have a tendency to increase too.How much do most property managers make? ›
The average Property Manager in the US makes $61,583.What percentage do most property managers take? ›
Typical property management costs
A monthly general management fee typically falls between 8% and 10% of the monthly rent for a single-family home—flat rates are rare for the monthly fee.
Rather than vaguely asking for more money, specifically state your desired salary and/or bonus. At a minimum this will establish a benchmark for the negotiation. A great way to phrase this is saying “I would like a salary of $XX,XXX. How do I earn that in this position?”.How do property managers stay organized? ›
- Document Everything.
- Create a Filing System.
- Communicate With Tenants.
- Use Property Management Software.
- Track Finances and Taxes Accurately.
- Below Market Rents: ...
- Hidden Fees: ...
- Mixed Messages from the Company: ...
- Poor Reporting/Communication: ...
- Expensive: ...
- High Maintenance costs: ...
- No Inspections: ...
- Placed a Bad Tenant:
- Physical risk at the property.
- Tenant risks.
- Administration risks.
- Market risks.
Many property managers work long hours to go above and beyond for their clients. This might mean skipping lunch breaks, attending inspections outside of business hours or taking client calls on the weekend. Not only does this destroy any semblance of work-life balance but it also causes stress and burnout.
Property managers planning great resignation: Voice of the Property Manager report. Property managers aren't “feeling the love”. Almost a quarter of property managers intend to leave the industry and 60 per cent say the biggest challenge is dealing with aggressive or abusive landlords or tenants.Is property management a good career path? ›
It's a high growth industry with rising revenues. And property management jobs are dynamic, working in the field, leveraging software technology, managing people and money, and too, workers are in high demand. Those with technology skills will enjoy better negotiating power and wages.How do I become a property manager with no money? ›
- Get your head in the game. The first, easiest and cheapest thing to start off with is the right frame of mind. ...
- Take in a lodger. ...
- REIT. ...
- Property lease options. ...
- Peer to peer lending. ...
- Property crowdfunding. ...
- Joint venture. ...
- Use your own equity.
There Are More Landlords Entering the Rental Market
When more people are becoming landlords, the demand for high-quality property management services increases.
A property manager is an essential piece of any investment property. They allow you to get the most out of your investment while advising you around any laws and legislation you are required to follow.What is the next step after property manager? ›
The final step of the property management career path is becoming a property management executive. While these positions are few and far between, they are critically important. Property management executives are fully removed from daily property and even portfolio operations.What is a property manager's first responsibility to the owner? ›
What is a property manager's first responsibility to the owner? Property managers are, first and foremost, responsible for overseeing the ongoing condition of the owner's property(s) and ensuring tenant satisfaction. Other duties—such as seeking tenants and managing evictions—depend on the contract with the owner.What task takes up the majority of a property manager's time? ›
Many property managers will say that the most time-consuming aspect of their job is screening tenants.What is another term for property manager? ›
Residential Management Professional (RMP) Master Property Manager (MPM) Certified Support Specialist (CSS)What are top 3 skills for assistant property manager? ›
Assistant Property Manager Qualifications/Skills:
Excellent communication and interpersonal skills. Detail oriented and highly organized. Strong customer service skills.
There are four types of property management: residential, commercial, industrial, and special purpose.What would you consider the most important skills property managers must have? ›
Strong Communication Skills
Communication skills are first on our list of the 'must-have' property management skills. Without strong communication skills, a property manager's job will be cumbersome.
- Look for small properties. Look for clients who are still growing their investment portfolios. ...
- Build a brand. ...
- Be consistent. ...
- Talk to bigger competitors in your area. ...
- Keep your current clients happy. ...
- Add new types of properties. ...
- Leverage online marketing. ...
Functions of a Property Manager
The property manager has a dual responsibility: to the owner or client who is interested in the highest return from the property; and to the tenants, who are interested in the best value for their money, including reasonable safety measures and compliance with fair housing laws.
- Effective communication with the team.
- Evaluating and confronting performance problems.
- Hiring the right people.
- Managing conflicts within your team.
- Retaining star employees.
However, other reward ideas are dinners with you or someone in your company, an extra paid vacation day, a free education or training course, a special trophy or plaque, etc. Lastly, the best incentive programs do not punish property management companies for failing to achieve the objective.What are 3 management strategies? ›
Strategic Management involves 3 steps: Planning, Execution & Monitoring.How can I make my property management more profitable? ›
- Keep Your Accounting Simple. ...
- Don't Get Involved With Dilapidated Buildings. ...
- Automate Collections. ...
- Buy High Quality Fixtures. ...
- Stay On Top of Maintenance. ...
- Screen Your Tenants. ...
- Stay Connected.
While widely known and revered in our industry, mastering these four concepts is frequently the elusive key to success at a property. These four approaches are commonly known as the 4 P's of property management: People, Price, Promotion, and Product.How do property managers get organized? ›
- Document Everything.
- Create a Filing System.
- Communicate With Tenants.
- Use Property Management Software.
- Track Finances and Taxes Accurately.
- Scale according to your business model. How and if to scale depends on your business model. ...
- Measure performance. ...
- Keep a lean, coordinated team with tech. ...
- Build and centralize the right integrated tech stack. ...
- Understand your profitability.