Introduction
We aim to provide you with a guide on the salary of a property manager. Property management is a demanding job that requires a lot of experience and knowledge to succeed. You need to know how to do everything from billing, payroll, managing tenants, and more.
Property manager salaries have a national average of roughly $100,000 per year, although many factors ultimately determine their total compensation. For example, some make much more and much less than the national average salary. A property manager who handles high property value accounts tends to demand higher wages than a property manager who works with lower property value accounts.
From an employer’s point of view, the best way to know the right compensation package, and how to establish competitive salaries for your employees, is to use current salary data from an industry-specific salary survey, such as our Real Estate Salary Survey.
What does a Property Manager do
Job Description
A property manager’s job responsibilities revolve around the administration of property. They are responsible for overseeing everything related to the property, from collecting rent and managing tenants to handling repairs and billing. The duties of a property manager can vary depending on the property management company they work for, but most are responsible for a variety of tasks.
Tenant Relations
One of the most critical aspects of the job is tenant relations. A property manager is responsible for ensuring that all tenants are treated fairly and in compliance with the lease agreement. The property manager also handles rent collection and maintains records of these payments. They may also be responsible for managing security deposits and issuing refunds when necessary.
Repairs and Maintenance
Another vital duty of a property manager job is handling repairs for the account. The property manager must perform routine property maintenance tasks, such as replacing locks and faucets. More extensive property repairs, such as plumbing or electrical work, may be contracted to other companies. However, a property manager must oversee these property repairs and ensure that they are completed promptly for the landlords and commercial building property owners.
Property Manager salaries
Like many jobs, a salary for a property manager is structured around base pay and bonuses that make up their total compensation. Bonus amounts can vary greatly and even by the industry the property manager is in. These bonuses may be based on performance or in other cases based on commissions. A property manager salary will likely even be a combination of both.
Commission
Property manager commissions are a critical pay component which for some help make this a lucrative career. The commission structure may vary from company to company and deal to deal, but they usually range between 10 and 20 percent of the property value. Again market reports are beneficial to make sure your property manager is paid fairly.
Base + commission salaries
Many companies offer a combination of a base salary plus a commission for property managers who can close property deals that the company has listed. This can make a big impact on what property managers earn.
Variables that affect salaries
Base salaries for property managers are not set in stone. They vary depending on work location and how much experience you have under your belt. In the highest paying cities, the salary may exceed the national average base salary.
In other cities, the average base salary will be well below the current labor statistics for salaries. Therefore the salaries for a property manager depend greatly on location, rental properties, experience level, years of education, and job duties.
Where to get salary data
Employers who need to learn more about the salary structure of similar property managers in their location should consult current market data to learn about the average pay values. This can then be used to help set a fair salary for a property manager.
How much does a property manager make
Average salaries
The average salary for a property manager is around $100,000 per year. However, a property manager can make more or less depending on their career experience, education, skills, or CPM designation. The property manager who has been in their job for a more extended period should expect to typically make more than those just starting.
Top earners salaries
A property manager who works for a well-performing company will usually make more than those who work for companies that are not doing as well. Combine this with location and they could be earning the top property manager salaries that are on par with the highest average salary for the job.
Earning potential
The potential for what a property manager can earn makes this a lucrative profession. Factors weigh heavily on the earning potential. Residential property managers will earn different pay from industrial property manager jobs. The same is true when comparing multi-family to retail property manager jobs.
Level of experience
Lastly, the pay can vary for those fresh out of college with a bachelor’s degree or those who have no experience at all. The experience level of the individual is a very big factor when determining pay.
Property Manager salary by state and property type
Property manager salaries vary by state. In California, what a property manager earns on average is much higher than compared to other states like Indiana. And in New York, the average property manager salary is also higher than most.
The property management salary also varies depending on the property type. For example, property managers who work for apartment communities typically make more than those who manage condominiums or homeowners associations.
As you can see, salaries can vary greatly depending on the state and property type in which you work. The best way for employers to know what to pay based on these factors is to get comparable data to help price these positions. There is no better way than by participating in a salary survey.
Salary of Property Manager vs. Commission
The main difference between commission-based and salaried jobs is how the property manager is paid. Commission-based property managers are paid a commission for every property they manage. This means that they are paid based on the amount of work they do.
Salaried individuals are paid base salaries, regardless of how much real estate they manage. These individuals are guaranteed a set income despite the addition of new real estate units.
The property manager who is paid a commission is not necessarily guaranteed a set amount of income. Instead, what property managers earn is typically based on the number of real estate units they manage.
How can property managers increase their salaries
There are a few options to increase a property manager salary. They can work more hours, take on additional properties, or invest in their skills and education. Each aspect is highlighted below.
Work additional hours
Working more hours is one way to increase their income. If they are willing to put in the extra time, they can earn more money. However, they should be careful not to overwork themselves, as this can lead to burnout.
Keep up with changes
A property manager can better themselves by getting additional training. To remain successful, they will need to keep up with changes in property management regulations and property maintenance techniques.
Invest in themselves
Finally, they should consider enhancing their careers by investing in a CPM designation or qualification that can help them grow their careers.
Average property manager salary conclusion
So, how much does a property manager make? The average property manager’s salaries are roughly $100,000 per year. It can be a great career for those in search of a new position or just starting their careers. The salaries vary based on the job market, career level, and education. The salaries are also influenced by years of experience and career skills.
As we have proven, numerous factors influence salary, which demonstrates the importance of a proper salary survey. The survey report provides answers companies need. Get the data you need for the jobs within your company.
