Property Managers hold down the fort

Published: 16 March 2007.

by Matt Krumrie
Monster Contributing Writer

When is the last time you knew of someone who dreamed of a career in property management? One person who didn't was Tony Smith, now the president of the Institute of Real Estate Management (IREM) and leasing vice chairman for CB Richard Ellis's Mid-South division. Smith says that like most people, he fell into property management, but he couldn't be happier.

"It's an interesting business," says Smith, who previously worked in the banking industry. "No two days are the same, and no job description can fully explain what the day-to-day operations and duties of a property manager are going to be."

That's the beauty of it, says Lynn Kelleher, property manager for Houston-based Navisys Group.

Because of the profession's growing challenges and demands, colleges and universities across the country are implementing property-management coursework and majors. Houston Community College and Virginia Tech University are now offering courses related to the field.

Job Stability?

While no profession is recession-proof, property management is one where you might find some stability. According to the US Department of Labor's Bureau of Labor Statistics, employment of property, real estate and community association managers is projected to grow about as fast as the average for all occupations through 2012. The same study also reports that job growth among on-site property managers in commercial real estate is expected to accompany the projected expansion of the real estate and rental and leasing industry.

Earning Potential

Investing in this type of education can pay off. According to the 2004 IREM Membership Profile and Compensation Study, Certified Property Managers (CPMs) earn median total compensation of $95,000, which includes a base salary for property management and additional real estate income from sales and leasing commissions. CPMs in the Pacific region earn the highest total compensation.

The median Accredited Residential Manager respondent reported total annual compensation of $53,574, which includes a mean base salary of $47,369, plus rental discounts and other real estate income. Total compensation and average salaries are highest among those in the New England region.

Of course, the more experience and education you have, the more your salary is likely to grow.

Prepare to Wear Many Hats

"Any given day you can have your entire day planned out, and the next thing you know is a fire alarm went off, a pipe broke or the power goes out," Kelleher says. "You have to wear a lot of different hats and prepare for the unexpected."

Kelleher, who is a certified property manager and works mostly with commercial properties, currently manages a 200,000-square-foot, 11-story, 60-tenant building in Houston -- a job that requires a wide range of skills.

"You have to have mechanical aptitude [and] financial aptitude; you have to be a marketing person and promote and sell the building," she says. "You have to work with outside vendors -- contracting plumbers, cleaning services, security guards, lawn-care and landscape professionals, construction companies -- getting bids, negotiating the best deals."

And, most of all, you have to take care of the number-one customer: the tenant.

"You have to do a lot of hand-holding, because you deal with different types of personalities on a regular basis," Kelleher explains.

The Soft Skills You'll Need

That's where the soft skills come into play, says Smith, noting that the following traits make someone a good candidate for a career in property management:

Ability to Handle Criticism: Tenants get mad and have complaints -- the hot water doesn't work, the people on the second floor are constantly yelling and screaming, the toilet on the third floor is overflowing, the heat is too high or too low, etc. When these problems occur, people want them fixed, and fixed now. Don't expect everyone to be polite and pleasant.
Self-Motivation: If everything is working and nobody is calling you, you need to be able to focus on the projects that can only be done when there are no emergencies to deal with.
Problem-Solving Skills: There are going to be multiple instances occurring at one time, Smith says. The elevator is out and it's lunchtime; the owner of the software business on the third floor had a lightbulb fall from the ceiling and break glass all over his network computers; an office furniture delivery company can't get its truck into the loading dock. You name it, it will happen, Smith says.

"I love the excitement and the challenge," Kelleher says. "It's fast-paced and full of surprises."