How to Become a Property Manager in 2021
Since the financial crisis, more and more Americans have abandoned the idea of homeownership in favor of continuing to rent. The pandemic only heightened this fear of buying a house.
In 2006, only one in five major cities had more renters than homeowners.
By 2016, it was almost half.
Since 2020, more than 50 percent of major cities have had more renters than homeowners.
Are you surprised by this? Even with rent prices continuing to rise, increasing in 39 states between 2019 and 2020 amidst a global pandemic, more and more people are choosing to rent property rather than own it. A major reason for that could be that rent is still cheaper than the mortgage on a house in 30 of the 50 largest metro areas in the US.
If you want a career in real estate, consider managing rental properties. The entry barrier is higher than other real estate careers, but it often comes with more structured hours and income. Since getting into property management happens through a combination of real estate experience and higher education, you might be arriving at the question from a few different starting points.
Perhaps you're reading this fresh out of college with a bachelor's in business admin. Maybe you're working your first job as a leasing agent, looking to advance. You could even be an experienced real estate agent wanting something different. The path forward would be slightly different for each of you, but this article will give you an idea of how to become a property manager.
What Does a Property Manager Do?
Property owners who intend to lease or rent their space hire property managers to handle the everyday details. The bulk of property management involves residential property (like apartments). Most renters never meet their landlord—they deal with the property manager, instead. Their duties include:
- Advertising and showing rentals
- Screening new applicants
- Performing Move In/Move Out inspections
- Setting and collecting rent
- Managing problem tenants, including eviction proceedings
- Coordinating contractors for maintenance and repairs
- Paying utilities, insurance premiums, and other expenses
- Doing basic accounting
- Keeping the owners apprised of any issues
The job is similar for retail, office, or industrial tenants. Recreational property or vacation rental management is similar, though with a much faster turnaround. Community Association Managers deal with the shared property or services of condos, cooperatives, or planned communities (think, a condo complex's pool or a planned community's clubhouse and grounds).
Steps to Become a Property Manager
Your way forward depends on where your career is right now, but regardless, you'll want to learn if the job is right for you before investing time and money into gaining the right qualifications. If you're starting out, become a leasing agent or assistant for a property manager. These are entry-level positions where you do the footwork of tenant management, and that's an excellent way to see if you like the reality of the job.
Most states allow you to do this without a license, so you'd be working under the supervision of a licensed individual. If you're a little further along in your career, use your network to talk to experienced property managers about the ups and downs of the job and what makes them successful. The requirements for becoming a property manager vary from state to state, so you need to check the rules where you live. But generally speaking, you'll need to earn a license and probably a bachelor's degree to get started. Plus, you can earn a few certifications to distinguish yourself from the competition as you move along in your career.
1. Get Your Real Estate License or Property Manager License
In most states, you'll need a Real Estate Broker License. That usually means:
- Taking Real Estate Pre-Licensing Courses
- Passing your Real Estate License Exam
- Gaining 1-3 years of experience as a real estate agent (it varies by state)
- Taking Real Estate Broker Pre-Licensing Courses
- Passing your Real Estate Broker License Exam
A few states allow you to get a Property Management License instead, which is basically a restricted broker license. Where available, it may allow you to skip some steps.
2. Get Your Bachelor's Degree (Optional)
A degree isn't legally required to become a property manager, but some states allow the right degree to replace a few of the requirements above. It will definitely make it easier for you to get a job. Most employers will want you to have higher education in relevant coursework. Your best bet is a four-year bachelor's degree in real estate, business administration, accounting, finance, or the like. If that's not practical, get a two-year associate degree. Completing as much relevant coursework as you can is better than nothing.
3. Get a Real Estate Designation (Optional)
Special real estate designations or certifications in property management aren't required, but there are a few that are well-respected and can help your career along. They'll provide additional training and make your resume stand out.
National Apartment Leasing Professional (NALP)
You'd want to get NALP certification early on while working as a leasing agent or assistant—you don't need a real estate or broker license to get this. It involves 25 hours of coursework plus at least 6 months of experience in a leasing role.
Certified Apartment Manager (CAM)
CAM certification is another pre-licensure certification but more heavy-duty. It involves 40 hours of coursework and at least 12 months of onsite property management experience.
Certified Property Manager (CPM)
A few years after you've earned your broker license, CPM certification would help you stand out from the crowd. You need at least 3 years of experience managing a minimum portfolio size before you're eligible.
Master Property Manager (MPM)
MPM certification requires at least 5 years of experience managing a larger portfolio to qualify. This one's a heavy hitter—something you'd get before starting your own management company.
Get Started on Becoming a Property Manager
To become a property manager, you'll need people skills, organizational skills, and attention to detail. You'll also need real estate licensure. If that step is still ahead of you, consider taking your coursework online. You can work around your existing schedule at your own pace, making it a convenient and affordable way to become a property manager.