What Property Managers Do and How to Become One: A Comprehensive Guide

Property management is a dynamic and essential profession within the real estate industry, involving a diverse range of responsibilities that ensure properties are well-maintained and profitable. If you’re curious about the role of a property manager or considering a career in this field, this guide provides an in-depth look at what property managers do and how to become one.

What Property Managers Do

Property managers play a vital role in maintaining the relationship between property owners and tenants. 

1. Tenant Management

• Screening Tenants: Property managers are responsible for thoroughly vetting potential tenants. According to the National Association of Residential Property Managers (NARPM), approximately 15% of rental applications are rejected due to credit issues or criminal background.
• Lease Agreements: Crafting lease agreements is a critical part of the role. The average lease term for residential properties in Australia is about 12 months, and property managers ensure that all terms are clear and legally compliant.
• Rent Collection: Efficient rent collection is crucial. In 2023, data from CoreLogic indicated that the national vacancy rate in Australia was 2.1%, which underscores the importance of effective rent management and collection in a tight rental market.

2. Property Maintenance

• Regular Inspections: Property managers conduct routine inspections to identify and address maintenance issues. A report from the Australian Property Institute (API) highlighted that regular property inspections can reduce maintenance costs by up to 20% by catching issues early.
• Repairs and Upgrades: Managing repairs and upgrades is a key responsibility. In 2024, the Australian Bureau of Statistics reported that the average maintenance and repair expenditure for residential properties was approximately $1,500 per year.
• Emergency Handling: Property managers need to handle emergencies efficiently. According to a survey by the Real Estate Institute of Australia (REIA), 30% of property managers deal with emergency maintenance issues at least once a month.

3. Financial Management

• Budgeting and Accounting: Property managers oversee financial aspects, including budgeting. A study by the Property Management Association of Australia (PMAA) found that property managers spend about 15% of their time on financial management tasks, ensuring budgets are adhered to and financial records are accurate.
• Expense Management: Managing expenses is crucial for profitability. The average annual operating cost for managing a property, including maintenance and administrative expenses, is about AUD 3,000, according to industry estimates.

4. Legal Compliance

• Regulatory Adherence: Property managers must ensure compliance with various regulations. In 2023, the Australian Competition and Consumer Commission (ACCC) reported that approximately 5% of property managers faced legal challenges related to non-compliance with property regulations.
• Evictions: Handling evictions is a sensitive task. The Residential Tenancies Authority (RTA) reported that in 2023, about 4% of tenants were subject to eviction proceedings, highlighting the need for property managers to navigate the eviction process carefully and legally.

How to Become a Property Manager

Becoming a property manager requires a combination of education, skills, and experience. Here’s a step-by-step guide, including relevant statistics to guide your path:

1. Obtain Relevant Education and Qualifications

• Educational Requirements: While a formal degree is not always required, many property managers hold qualifications in property management, real estate, or business. According to the Australian Government’s Job Outlook, about 20% of property managers have a diploma or higher qualification in related fields.
• Certifications: Depending on your location, you may need specific certifications. For example, in Australia, obtaining a Certificate IV in Property Services is often necessary. This certification is recognised and can enhance job prospects.

2. Gain Experience

• Entry-Level Roles: Starting in entry-level positions such as a property assistant or leasing agent can provide valuable experience. The Australian real estate industry offers numerous entry-level opportunities, with approximately 10% of property managers starting their careers in these roles.
• On-the-Job Training: Practical experience is essential. Many property management roles involve on-the-job training, which helps develop the necessary skills and understanding of property management tasks.

3. Develop Key Skills

• Communication and Negotiation: Strong communication skills are crucial. According to a survey by the Property Council of Australia, 85% of successful property managers cite communication and negotiation as key skills for managing tenant relationships and resolving disputes.
• Organisational Skills: Effective organisation is necessary for managing multiple properties and tasks. The ability to handle administrative duties efficiently is a top skill required by 90% of property management professionals.

4. Obtain a Licence

• Licensing Requirements: In many regions, property managers need a licence to operate. For example, in New South Wales, property managers are required to hold a real estate licence issued by the NSW Fair Trading. Licensing requirements vary by state and territory, so check local regulations.

5. Continue Professional Development

• Ongoing Education: Staying updated with industry trends and regulations is important. According to the Australian Property Institute, continuing professional development is recommended for property managers to keep their skills current and maintain industry knowledge.

Property management is a multifaceted profession that requires a blend of skills, knowledge, and practical experience. From managing tenants and maintaining properties to handling financial aspects and ensuring legal compliance, property managers play a crucial role in the real estate industry. By understanding the responsibilities and following the outlined steps to enter the field, you can embark on a rewarding career in property management. Whether you’re just starting or looking to advance your career, this guide provides a solid foundation for navigating the world of property management.