Property management is the preservation, functioning and oversight of real estate and tangible properties. Management of properties is a way to take responsibility and make sure that properties are cared for and looked after. This comprises commercial, private and lands real estate.
The term commercial real estate indicates buildings or land construction to gain some profit which could be either capital gain or rental income. This includes hotels, malls, offices, farmhouses and medical centres.
Private property is a non-government entity for owning a property legally. It is different from a public property which is owned by a state entity. Private properties can be in the form of personal properties or capital goods. Proper property investment strategies must be considered to understand all your options really well.
There are numerous pros and cons of managing a property.
Starting with the pros:
- It is a high growth Industry – being a real estate career in high demand, entering this field in any housing market is a great idea. Need for residential property managers increasing as there is a spurt in rental demand. This makes it a strong career on a global scale. The global property management market is expected to grow by $7.8 billion from 2018 to 2023. This is a compound annual growth rate of 8.8%.
- The property Manager Salary – according to a website, the salary earned by an average property manager in the US market is $97,224. Not everyone can earn so much in this field as this number can vary depending on the location of property, experience and knowledge of the property manager. Property managers who are certified with ten years of experience can earn about $113,000. This is of course excluding the property management fees they receive
- Find Real estate skills – there are some real estate investors who haven’t managed their own investment properties. Assigning the work to property managers takes away the chance of developing the skill which comes by being active in real estate. Property managers are aware of the different factors affecting the properties performance, which puts them in a superior position. Here are some of such skills,
- Spotting Opportunity – rental managers know what their tenants are looking for as they deal with them. As you manage multiple properties, you need to know the performance rates for a market. You need to be the first person to spot an opportunity with in-depth knowledge of the market.
- Time Management – the only way to deal with things in the most efficient way is to manage the time and prioritise work smartly.
- Investment Evaluation – this isn’t the easiest thing to do. Developing the skill of knowing which rental improvements can profit higher rents will be helpful.
The cons are:
- Managing a Rental property requires constant attention – not everyone realises that this is a full-time job. Whether you work for a property management company or you’re self-employed, there can be many off-duty work and emergencies. You may not have a fixed schedule for your daily activities.
- The task of taking on tenants and finding clients – some tenants can cause issues by not paying the rent on time. You can study the rental laws in your city to deal with it. Some states are landlord friendly where it is easy for owners to ask for tenants to vacate. Property managers are responsible for attracting the right type of clients and will be liable if unable to do so.