Are You Cut Out For Doing Property Management? Take This Quiz

By
Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

property managerYou’ve probably already heard that the rental market across the United States has spiked over the last couple of years. "Rental appreciation has been a freight train these past few years, chugging along without any appreciable slowdown. Since 2000, rents have grown roughly twice as fast as wages, and you don't have to be an economist to understand why that is hugely problematic," said Zillow Chief Economist Dr. Stan Humphries in a February 2015 Zillow Press Release. As part of the aftermath of the Great Recession, there is a significantly greater demand for rental properties. And, with more renters, come more property managers—more agents who want to take the plunge and enter the realm of property management. But, is it for you?

If you think you’re cut out for property management, take this quiz and find out.

  1. Are you frequently awake in the middle of the night? If you are often up in the middle of the night, then property management may be for you. Property managers who manage a significant number of units often receive calls in the wee hours of the morning. If you don’t mind the late night or early morning interruptions, then you’ll do just fine as a property manager.
  2. Do you like working on weekends and holidays? You’re about to take a bite of your fancy 4th of July burger and your cell phone rings. If the intrusion is something that you can tolerate, then property management may be a niche for you. Unless you have a large staff on call for issues arising on weekends and holidays, you’ll have to be available for your tenants (and owners). If you miss a call and the problem is major, there could be significant liability. It’s important for property managers to always be available for their tenants and owners.
  3. Is balancing the checkbook considered one of your favorite activities? If you love keeping your checking account balanced at all times, than you will be a great property manager. Since property managers are charged with managing other peoples’ money using a Trust Account, it is vital that the bank account be in balance at all times. Transposed digits and you could be accused of commingling funds or mismanaging money. But, if you are one of those agents who adores keeping the accounts balanced, you’ll be a superb property manager.
  4. Do you enjoy solving other people’s problems? Electricity bills too high? Spiders in the cabinet under the sink? Moisture behind the toilet? If you love getting involved in other people’s business and solving their problems, then property management is definitely for you! Just make sure that you have a team of contractors to help with all the repairs.
  5. Does paperwork give you a thrill? If your favorite part of the real estate transaction is the paperwork, then you will love managing other people’s property. Each property must have a good balance sheet, a property management agreement, a lease and ancillary addenda, photos of the property at move-in as well as a myriad of other documents. If paperwork is your thing, then you’ll enjoy managing multiple property files at the same time.

While certainly property management can be a challenge, it is not without its benefits. Managing a handful (or more) of properties brings in regular monthly income. When and if there are peaks and valleys in your real estate sales closings, then you can rely on the regularity of the income associated with property management. Just remember that—like anything—property management is not without its challenges!

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Rainmaker
451,977
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

Don't need to take the quiz. I'm not cut out for PM. Have a fantastic weekend.

Jul 08, 2016 11:04 PM #1
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Well, I have been doing it for six years and counting. Now, I just opened my own brokerage focused on management, sales and development.

Jul 08, 2016 11:06 PM #2
Rainmaker
719,075
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Melissa Zavala Having done my share of property management back in the 70s I don't think I'll be jumping back into it anytime soon.

Bill Roberts

Jul 08, 2016 11:52 PM #3
Rainmaker
3,413,764
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Melissa Zavala,  Not interested in property management but always interested in your other topics.

Jul 09, 2016 12:22 AM #4
Rainmaker
1,468,784
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Melissa,
I got a chuckle out of this.  None of these are my favorite things but I did PM for quite a while anyway. It was a good solid supplement to the bottom line, in spite of the crawbacks.  LOL

Jul 09, 2016 01:23 AM #5
Rainmaker
56,517
Sharon Kolb
Atlanta Decatur Homes - Atlanta, GA
Broker - Atlanta Decatur Homes

Hi Melissa - also do Property Management so could relate to all your points.  It's not a field for the faint of heart!  Enjoyed your insights.

Jul 09, 2016 01:49 AM #6
Rainmaker
2,873,134
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Melissa, Could I do it?  Yes.  Do I have the skills to do it?  Yes. Could I earn an good income doing it?  Yes.  

I do not need to take a quiz to know that property management is not something I want to do. 

Great post!

Jul 09, 2016 05:34 AM #7
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Without taking the quiz Melissa, I am not cut out for property management! 

Jul 09, 2016 09:46 AM #8
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Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Melissa, I'd fail that quiz miserably!  I have more than enough to do with my dual career life without adding a third source of work!  Bill

Jul 09, 2016 11:23 PM #9
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Melissa Zavala

Broker, Escondido Real Estate, San Diego County
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