How to Become a Property Manager: And How It Makes You a Better Investor

The Big Picture On Becoming a Property Manager

• Property managers handle leasing, tenant communication, maintenance, and finances.
• Meet requirements (age, education, residency, licensing), develop skills (organization, communication), and consider certifications (NALP, CAM, CPM, MPM).
• Entry-level pay starts around $44K with growth potential and improves real estate investment skills.

Think property managers just cash rent checks and periodically yell at wayward tenants?

In reality, property managers oversee the entire leasing cycle, from advertising vacant units to screening rental applications, managing repairs, and filing for eviction. If you like the real estate business but don’t love the uncertainty of realtor commissions, becoming a property manager offers a great way to earn a steady salary. According to the Bureau of Labor Statistics, property management professionals earn an average annual salary of $58,760. 

Where do you start? Like any career, you must plan and take the necessary steps to become a successful property manager. 

What Does a Property Manager Do?

Before entering the career field, ensure that you understand what property managers do on a daily basis. Generally, property managers take on the role of the owner or landlord when they are either unable or uninterested in managing their property. 

Below are examples of tasks that property managers routinely take on:

1. Posting rental listings to advertise vacant rental properties
2. Showing vacant rental units to potential tenants
3. Collecting rental applications and screening potential tenants
4. Signing lease agreements with both new and renewing renters
5. Fielding phone calls and emails from tenants about maintenance issues
6. Coordinating and negotiating with contractors and overseeing property and community maintenance 
7. Maintaining regular communication with the owner or landlord of the property
8. Performing house visits and property inspections
9. Handling expenses and the business aspects of renting (such as budgeting and bookkeeping) 
10. Performing basic accounting tasks and preparing financial and property status reports
11. Setting rental rates
12. Collecting both rent and security deposits
13. Providing continuous customer service for tenants
14. Overseeing the eviction process
15. Staying up to date with landlord-tenant laws

As you can see, the tasks of a property manager are quite extensive. Being a property manager has its challenges, but it often makes for a fun, fast-paced job where you get out of the office for hands-on work. 

More To Know About Becoming A Property Manager

For a wider understanding, below are more factors you should be aware of if you want to become a property manager.

How to Become a Property Manager: Step by Step

Becoming a property manager doesn’t require a specific degree. Still, it helps to differentiate yourself as an entry-level candidate to convince a property management firm to take on the time and labor to train you in the field. 

Step 1: Meet the Minimum Requirements

Unlike many career paths, the minimum requirements to become a property manager are straightforward: 

• You must be at least 18 years of age (some states require you to be 21)
• You must have at least a high school diploma or a GED equivalent 
• You must be a legal resident of the U.S.
• You must pass the real estate licensing exam (most, but not all, states require this)

Beyond this, the requirements can differ from state to state. For example, states that require passing the real estate licensing exam may insist on a certain number of hours in the industry.

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Step 2: Understand the Skills Needed to Become a Successful Property Manager

Being a property manager and being a successful property manager are very different. Following this career path takes a special individual, for you must balance flexibility with organization. You never know when a tenant may disrupt your planned afternoon or a pipe may burst and require emergency repairs. 

Even so, it would help if you stayed organized, as you are in charge of billings, bookkeeping, and communication with tenants and landlords/owners. Some important skills shared by effective property managers include:

• Patience
• Organization
• Communication 
• Customer Service
• Marketing/Advertising 
• Basic Accounting

Luckily, these skills do not require years of education to acquire. You can enhance any of these personal skills on your own time in several ways. Many people typically associate property management with the management of long-term rental properties.

However, it’s important to note that not all property managers focus exclusively on long-term rentals; some specialize in short-term vacation rental properties, such as Airbnb property managers.

Step 3: Obtain Any/All Specialty Certifications

Some states require certain licenses or certifications to become a professional property manager. Learn about the four main certifications available and consider whether any would help you advance as a property manager. 

National Apartment Leasing Professional (NALP)

Generally, a NALP certification is obtained earlier in one’s career. It combines coursework and on-the-job learning to prepare you for the skills needed to succeed in the real estate business.

To obtain the NALP certification, one must complete:

• At least six months of on-site property management experience (this can be completed as one is enrolled in the course)
• All seven NALP courses, which totals 25 credit hours

Certified Apartment Manager (CAM)

Similar to NALP, the CAM certification is also a solid option for those early in their career. The difference is that CAM hones in on managing apartment communities. While still useful for learning the business more broadly, it is geared towards those who want to be an on-site representative for a specific company.

Obtaining the CAM certification requires:

• At least 12 months of on-site property management experience in a management position (this can be completed as one is enrolled in the course)
• The completion of all CAM courses, which totals 40 credit hours

Certified Property Manager (CPM)

To enroll in a CPM course, you must have a minimum of 36 months of real estate management experience and have obtained your real estate license, which your current job may have yet to require.

Additionally, these requirements must be met within one year of enrolling in the course. Since the CPM is a greater certification, the details and specifics you learn regarding property management are extensive.

The CPM certification teaches:

• The hiring and managing process.
• How to oversee all property repairs, improvements, and general maintenance. 
• Book-keeping, billing, and collecting rent.
• How to perform regular inspections and take eviction action if needed.

Master Property Manager (MPM)

Obtaining an MPM certification is the highest level of education you can receive as a property manager. Although this certification requires the most hard work and dedication to your career, obtaining the MPM leads to respect in the residential property industry.

The qualifications to enroll in this course include:

• A minimum of 60 months of real estate management experience in a management position
• Obtaining a real estate license or verification that your current job does not require one
• Within a year of enrolling in this course, all other exam requirements must be met.
  

Also, the portfolio criteria have been modestly increased. Applicants must have managed 500 residential units over a five-year period.

Step 4: Know How/Where to Start

Now, you have learned what it means and what it takes to become a property management professional. So now what? 

Like any career, you want to build yourself up from the bottom. Apply to any entry-level positions within a real estate firm or property management company. Not only will you learn the basic ropes of the business, but you can also start clocking on-the-job hours for one of the certifications above. Plus, you’ll benefit from the instruction and supervision of a property management professional. 

Remember that although these entry-level positions require at least a high school diploma, having a bachelor’s degree greatly increases your chances of landing the job and earning greater compensation.

Also, note that different states may require their specific qualification requirements, offer different salaries, impose different landlord-tenant laws, and often require different lease clauses and disclosures. Make a conscious decision about where you want to start your career.

Step 5. Continually Advance in Your Career

Climbing the ladder in the property management field means never putting off learning. Once you land that first gig, you should watch for new industry trends and best practices—staying sharp always comes in handy.

Pursuing additional education or obtaining a Real Estate Broker’s License can also open up new opportunities and show your commitment to professional growth. A broker’s license allows you to manage your own independent property management business, which gives you greater control over your career path.

In addition, networking with seasoned professionals in the industry can give newcomers some insider knowledge. As you rack up experience, you might want to zero in on specific property types. That way, you can stand out from the crowd and really nail what your clients need. 

Take the leap! If a career in property management sounds like a good fit, there’s no time like the present. Whether you are just starting your career or are looking to pivot to something new, property management offers a stable occupation and lifestyle. It will introduce an entirely new level of real estate knowledge.

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How Much Money Do Property Managers Earn?

This varies by age, education, level of certification, and state. According to Payscale.com, an entry-level property manager new to the industry earns approximately $44,097. 

The more qualifications and certifications a property manager obtains, the greater their salary. According to the Bureau of Labor Statistics, established property manager professionals make, on average, $58,760 annually.

Annual salaries also vary by state. Different states in the U.S. have different property and rental values and types. In New York, the type and costs of rentals may be very different from those in the Midwest.

How Property Management Skills Make You a Better Real Estate Investor

Becoming a property manager can help you earn a steady paycheck and become a better real estate investor.

As a property manager, you’ll better understand how tenant turnovers work and how to turn over units faster to minimize vacancies. Tenant turnovers account for most of the labor and expenses of being a landlord. When you experience turnovers, you’ll better understand how to screen rental applications, review tenant screening reports, and judge who will make a good tenant and who won’t. 

Better yet, as a property manager, you’ll learn how to retain tenants and reduce turnovers entirely. 

Becoming a property manager will also teach you the eviction process from start to finish. No more procrastinating on enforcing your lease agreement!

Finally, when you become a property manager, you will build a network of support personnel you’ll need as a landlord. That network includes contractors, real estate agents, appraisers, home inspectors, and title companies. 

Stay Updated on the Best Practices

Old and young alike can always learn new tricks! Engage with other real estate professionals for their advice and opinions; it is a competitive business—the more knowledge and insight, the better!

Keep yourself updated with any new rules or regulations within the industry, and read property management blogs to stay in tune with the latest real estate trends. ♦

What do you find attractive about becoming a property manager? As you learn how to become one, what are your reservations?

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