How does the property management industry do in a downturn?

Question

I am looking at getting out of commercial construction management and into something more related to real estate investment (particularly buy and hold rentals). I am looking towards property management. I am wondering how this industry does in a downturn.  I'm thinking that it probably does okay because more people might be renting their homes instead of buying in a downturn, but it would be nice to hear from someone with actual experience in this industry.

2nd question: what kind of licenses would be more likely to get me hired and for a higher salary starting off, and what kind of salary could I expect? I am in Texas, where I believe that somewhere in the company, someone needs to have a real estate license license to be a property manager, but not necessarily everyone, akin to how a bunch of workers can work on electrical systems in a structure as long as they are working under a licensed electrician.

Any info would be very helpful, as I'm just beginning my research on this.

Jay Hinrichs · Answer

Ya a month ago I made a post on BP what would you do.. and of course 75% of those on BP who answered did so with the

NO PAY NO STAY or we are not a charity  or we are a profit business or its not our issue etc etc.. Now of course when they realize this is a world wide issue attitudes have changed..  I suggested back then one would want to be proactive to save GOOD tenants.. not Tenants that are problem childs but GOOD tenants.. and we are seeing that now

Dawn Brenengen · Answer

@Shaun Roark You get a license first.  Then you hang that license with with a supervising broker, at which point you will be able to actually activate and use your license.

Dawn Brenengen · Answer

@Jay Hinrichs We have had an influx of emails from our property owners, but so far, they have all been to proactively say they want to work with tenants if they are having any financial trouble.  It's actually been really heartwarming to see the response so far.

Dawn Brenengen · Answer

@Shaun Roark I started my PM company in 2010 during the last recession in response to finding more people needing that service.  Sales were slow at the time, and the number of accidental landlords was on the rise. I was able to replace my previous income within my first year.

Most states will require you to have a real estate license to do PM activities.  You can do admin duties as an employee of a PM company without a license, but you will likely not be able to be hired as a property manager without a license.  Look up the requirements for your own state

Dawn Brenengen · Answer

@Shaun Roark Correct!

Shaun Roark · Answer

@Dawn Brenengen Ah, so I CAN "get" a license without first having a broker sponsor, but in order to "activate" it and use it I'd need a sponsoring broker.  Thank you so much for clearing that up.  That explains why I've been seemingly been getting two different answers from everyone.

Shaun Roark · Answer

@Dawn Brenengen I'm a little confused.  You say the company I would be working for will have a broker and I will need a broker to sponsor in order to get a license. And yet you say I would not likely be hired as a property manager without a license.  Am I understanding this correctly?  So what's my way in? I was hoping to get a license to be able to be more desirable to hire. I've asked a few people this question, and when I say "how do I get a broker", it's never really a clear answer. Why do you think this is?

Dawn Brenengen · Answer

@Shaun Roark The company your work for will have a broker who will be your sponsoring broker.  You would need a broker if you are doing anything that requires a RE license, like property management.  The broker is basically your supervisor.

Shaun Roark · Answer

Next question, exactly which type of license would I need? I have heard from one source that I would need a sellers license and to be sponsored by a broker. Another source said that I wouldn’t need a sponsor if I wasn’t using the license to actually sell real estate. Follow up question: if I do need a broker sponsor, how does one go about finding a broker sponsor? Do I just look one up in the phone book and pay them a certain amount, or is it more complicated than that?

Jay Hinrichs · Answer

this was very common for brokerages all over the US as it created income for them.. I suspect right now coming into April and the uncertainty of rents coming in PM's are going to be quite busy and will like landlords suffer reduced incomes as their income is based on collected rent at least the monthly portion .. just going to be a wild ride for landlords and Pm's in the next few months but it will pass.

I suspect PM's are being bombarded right now with worried investors..

How does the property management industry do in a downturn?

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