July 21 2017
If you have recently been researching property management careers, the one thing that may keep popping into the back of your mind is, “How is this different than a career in real estate?” There are some major differences between property management careers and real estate careers. Except for the occasional overlap, the two industries are entirely separate.
Property Management Careers
A property manager is involved with the management aspects of a property, on behalf of the property owner. The property management industry is contractual – the property owner enters into an agreement with the property manager for management services. The property manager then enters agreements with tenants, where rent is exchanged for management services.
A career in property management requires flexibility and excellent customer service skills, although there is a bit more structure in the work hours of a project manager than a real estate agent. Property manager positions are typically salaried, providing consistency.
Property management careers are independent of the housing market. In fact, an unstable or down in the housing market bodes well for property managers, as more individuals will be looking to rent a unit rather than buy a home. Property management careers are more stable than real estate because there will always be individuals looking to rent a unit.
Real Estate Careers
Real estate agents list and sell properties, typically for the property owner. The real estate industry is transactional, as properties are simply purchased and sold – there are no services required or exchanged. Much like property management, a career in real estate also requires flexibility and excellent customer service skills. Real estate agents typically earn money based on commission, which can be good or bad.
A volatile housing market can create uncertainty for those in the real estate industry. If the housing market is doing well, then the real estate industry will be thriving. But, if the housing market is down, there will be uncertainties and challenges.
Which Is Right For You?
Both careers can prove beneficial, and you should find the industry and career that best suits what you are looking for. The property management industry is thriving. Too often, it gets bundled into the real estate agency and is passed over because of the current state of the housing market. But, property management careers are growing, with a projected 8% growth over the next decade. If you are looking for a new career, look no further than the property management industry.