I am currently working in RE sales in MN and have been considering making a transition into Property Management. My reason for making the transition is that I eventually want to own single family rentals and small multifamily properties and feel that working in PM will give me a strong foundation to learn the business of owning and running rentals as I begin my own investing career. I am looking to hear peoples experience in working in PM. The pro's as well as the con's of the career. I think it would be very helpful to hear from someone who is in the business who can give me a real account of what they like and don't like about being in PM. If anyone has any input at all, that would be greatly appreciated. Thanks everyone.
@Stephen Glover has done very well for himself! Hopefully he can chime in here.
From my observation, Property Mangers can be fantastically successful investors. However, being a PM is far from necessary for success in real estate investing.
Good communication skill is super important for a PM since he's like the bridge to all kinds of people. PM also improves your networking ability.
Thank you both for the response. I would be happy to hear what Stephen has to say regarding his experience. Thanks for that information.
@Ryan Knutson do you have any properties of your own? If so, then you already are a property manager. You don’t have to go 40hours/week into PM and change careers. You’re a successful RE agent, you’ve got the connections already. Once you have a few of your own properties, being a PM isn’t rocket science. It’s a customer service position (which you already know how to do from RE sales). Be a good communicator; build relationships with local service providers like plumbers, handymen, roofers, etc (which you probably already have); and keep on top of your maintenance requests. You can do it.
AND there’s nothing better than O.J.T. Just having one of your own properties and you’ll learn a lot. Cheers to a successful career :)
Elise Whittenburg: Thank you for that information. I do not have any of my own properties at this point. That is my biggest reason for wanting to get into property management. I understand where you're coming from with the connections that are very beneficial that I have already build by selling real estate. My biggest thought is that I will learn the ins and outs of the PM business and investing as I do not own any of my own yet. Thank you for your input, very helpful.
@Taylor L. I could probably talk for hours about this. Thanks for tagging me.
@Ryan Knutson there are a lot of advantages that a typical investor wouldn't think about when it comes to being a PM. I don't even know where to start. I'll say that getting into the PM industry has been a massive advantage over simply being an investor. I get to see what hundreds of our investor clients are doing in our local market, what the tenants are doing, rent rates, improvement ideas, etc. How they are winning or losing. As a part of my job, I "get paid" to network with local banks, lenders, CPA's, commercial and residential agents, investors, attorneys, and contractors DAILY. I "get paid" to go to RE meetups. Talk about building a team, developing relationships, and passing some business! I develop relationships with my clients, learn their strategy so we can serve them better- and the whole time I'm soaking it in like a sponge. What do you think happens when ANY of our clients are thinking about selling their property? Who do they come to first?
On the other hand...... there's definitely a potential for conflicts of interest, and you should always work ethically. Always put your client's interests of growing their portfolio above yours. You're working a job in a business that needs to be successful- you'll be putting in a ton of hours to deal with tenants who can't open a front door (yesterday's fun). There will be a lot of frustration and managing people and processes. However, if you can stay focused and see the longer-term benefit, being a PM is the HUB of RE investing.
I would NOT change your profession just because you want to buy some houses. The frustration and learning curve won't be worth it in the PM industry. It's tough with low margins. However, if you're willing to invest your time to GROW the business and GROW your team, and a spin off would be that you have more opportunities to invest and more relationships, then it might be a good idea. The business' priorities should come first, with you there to take advantage of the rest.
In 15 minutes I'm meeting with an investor that owns 20 units and just bought an 11 unit building that we are managing. I've learned so much from his experience purchasing the 11-unit and was involved every step of the way. Now, I'll provide exceptional service so he stays on our team for years to come. Just another daily meeting!
PM me if you want to chat more.