Ever considered getting into real estate? Property Management could be the career for you.
Property management is the oversight, control, and operation of real estate. It involves all the processes and includes systems which manage and can include all property dealings including control, acquisition, responsibility, accountability, disposition, maintenance, and utilization of property. A good property manager needs to be able to listen to their clients, communicate between both parties and facilitate the management of their client's properties with tenants.
Property managers are essentially the intermediaries between the property owners and tenants. They manage and lease industrial, commercial, residential and retail properties in the best interests of property owners, so it’s imperative to be detail oriented while maintaining effective and diplomatic communication so that everything runs smoothly.
Check out the Scope of Property Manager in Australia
The Australian property market is constantly changing so it’s always worth having your finger on the pulse to understand how and what affects change. Statistically the housing market Australia has enjoyed a steady 6% growth since the 1990’s, yet relative to average incomes, housing prices remain one of the highest in the world which translates to a rental market inflation. With over $2 billion worth of properties registered in just the last 12 months, people need reliable and trustworthy Property managers and real estate agents. With hard work, tenacity and success, this field ensures career growth, personal development, often prestige, high income and benefits, and personal compensations.
How to become a good property manager?
First and foremost, you’re going to be dealing one on one with both your clients and their tenants, so the emphasis here is that you need to be a good negotiator. As a property manager, they facilitate communication with everyone associated with the property, the unit or home owners, shareholders, the super, the board of directors, and so forth. Conflict is usually a result of misunderstanding and expectations not being met, so like a good foreign diplomat it’s the job of the property manager to use their experience and market knowledge to inform everyone step by step what’s best practice.
In addition to good communication, it’s the property manager’s job to keep the board of directors informed, generally by providing two reports each month on the financial status and day to day operations of each property they manage.
What’s in the financial report?
A property manager’s financial report should contain a general ledger showing the projected versus the actual budget and the accounts payable reports for the property owners or shareholders. This should clearly document all bills, bank statements, reconciliation and checks showing all money disbursed for the month.
What’s in the day to day operations report?
A property manager’s operations report contains all correspondence between management, tenants/owners, the board and any other paperwork regarding the property’s operations.
The lucrative benefits of Property Management
While being a property manager no doubt demanding, there are definite monetary attractive perks to the job. While some start on hourly rates from $37/hour to $50/hour, the average annual income of ranks in at approximately $72,500 per annum. For larger companies with high profile clients like Westfield Leasing, their agent’s salaries often place in the $300,000 per annum range. The salary range increases as you move aggressively and work hard for the property management line.
Career Growth for Property Managers in Australia
There are a lot of opportunities to develop your career once you’ve got your foot in the door given the diversity of the industry. Real estate agencies, local councils and even some investment companies need property managers that can both manage and advise a strategic direction. Or rather than seek traditional employment, some ambitious property managers start their own businesses and run independently, the property industry is quite vast and there are a lot of opportunities to diversify your portfolio in Australia. The job of a property manager is a balancing act, one that requires the agent to anticipate and handle logistical issues, without losing sight of the responsibilities to all the people of the building. What career progression in this industry really looks like is the move from property management to asset management, which requires strategic though and implementation, an advanced numerical ability to be able to easily navigate their way around cash flow and data modelling as well as being MRICS qualified. Always a great way to indicate to your employer your intention to move up the ladder if you’re undertaking or have indicated your ambition to seek further education to progress your career.