How to Become a Commercial Property Manager (Leasing to Pleasing!)
If you’ve ever envisioned managing commercial properties or wondered what it takes to become a successful commercial property manager, you’re in the right place.
In this guide, we’ll explore the EXACT steps you need to take to kickstart your career in commercial property management. We’ll discuss:
- The skills you need.
- The education that can help you achieve your goals.
- How to secure a job as a commercial property manager.
So, whether you’re new to the field or a seasoned professional seeking to expand your skills, stay tuned.
We’re about to unveil the roadmap to becoming a commercial property manager.
Let’s dive in!
Steps to Become a Commercial Property Manager
Step 1: Understand the Role of a Commercial Property Manager
Before pursuing a career in commercial property management, it’s essential to understand what this role entails.
As a commercial property manager, your primary responsibilities will be to manage and oversee commercial properties such as office buildings, retail spaces, storage facilities, and apartments.
This includes tasks like setting and collecting rent, tenant relations, property maintenance, and ensuring that the property adheres to regulations.
In addition to understanding the practical aspects of the job, it’s also important to note that this role requires a mix of business acumen, customer service skills, and knowledge about real estate.
You will be the point of contact for tenants and responsible for maintaining a healthy financial performance of the property.
To get an idea of the role, you could consider internships or work experience in property management firms, real estate agencies, or commercial properties.
This will give you firsthand experience and an opportunity to decide if this career path aligns with your interests and strengths.
Moreover, it’s also beneficial to speak with professionals in the field or join industry networking groups to gain insights about the industry, the challenges, and the rewards associated with the role of a commercial property manager.
Step 2: Obtain a Degree in Real Estate, Business Administration, or Related Field
If you aim to be a successful commercial property manager, a relevant degree in Real Estate, Business Administration, or a related field is usually required.
These programs typically cover topics such as property management, real estate law, investment and finance, and commercial properties.
They equip you with the technical knowledge and analytical skills needed to manage properties effectively.
While pursuing a degree, you can choose to focus on courses that delve into real estate finance, commercial leasing, and property development.
These specialized subjects will give you a comprehensive understanding of the commercial real estate industry.
Aside from the traditional bachelor’s degree, some universities offer a master’s degree in real estate or business administration with a concentration in real estate.
This advanced education can provide you with a competitive edge, especially if you plan on working in high-level management or in large real estate firms.
Remember, while a degree is important, hands-on experience gained through internships or entry-level positions can be equally beneficial in shaping a successful career in commercial property management.
Step 3: Gain Experience in Real Estate or Property Management
After obtaining your educational credentials, the next essential step is to gain experience in the field of real estate or property management.
This can be accomplished by securing a role as a real estate agent, property manager, or leasing consultant, among others.
Gaining experience in these areas can help you understand the intricacies of managing commercial properties, dealing with tenants, and understanding the local real estate market.
Work experience not only gives you a practical understanding of the real estate industry, but it also allows you to build a network of industry contacts.
You can learn from more experienced professionals and gain insights into the finer aspects of commercial property management.
Remember, the goal here is to learn as much as possible about the industry.
This will give you a firm foundation for your future role as a commercial property manager.
This experience will also be invaluable when you take the next step of acquiring your property manager’s license.
On-the-job training will teach you about lease negotiations, property inspections, budgeting, and financial reporting, all of which are crucial skills for a commercial property manager.
Another crucial aspect is learning about property laws and regulations, which you will frequently encounter in your role as a property manager.
It’s important to note that the more experience you gain, the more attractive you will be to potential employers.
So, take every opportunity to learn and grow in your role.
Step 4: Learn About Commercial Real Estate Law
Understanding commercial real estate law is a crucial step for a Commercial Property Manager.
This knowledge is essential for managing lease negotiations, resolving tenant disputes, understanding zoning regulations, and complying with all local, state, and federal laws.
You will need to have a basic understanding of contracts, know how to interpret lease agreements and be aware of any legal risks or liabilities.
Courses in real estate law are available at many universities and through online platforms, and it is also possible to gain knowledge through self-study.
Additionally, attending seminars and webinars on the subject can help you keep up with the latest changes and developments in the field.
It’s also advisable to build a network of professionals including real estate attorneys who you can consult with when legal questions arise.
This legal knowledge will not only make you more effective in your role but can also prevent costly legal mistakes.
Remember, your responsibility as a commercial property manager involves not just managing the property, but also protecting the interests of the property owner.
Step 5: Acquire Financial Management Skills
In your journey to become a Commercial Property Manager, it’s crucial that you develop solid financial management skills.
These skills form a fundamental part of the job as you will be responsible for budgeting, setting rent rates, collecting rent, and keeping detailed financial records.
There are many ways to acquire these skills.
You can take courses in finance, business administration, or accounting.
Practical experience, such as an entry-level job in a real estate or property management company, can also provide valuable insight.
Here, you may be given responsibilities related to budgeting or rent collection, which can help you understand the financial aspects of the role.
Furthermore, having a good understanding of local and national laws relating to real estate finance is essential.
This includes understanding taxation, valuation methods, and how to manage financial risk.
Remember, efficient financial management is not just about handling money.
It’s about making financial decisions that benefit the property owners, tenants, and the property itself.
Therefore, your financial management skills can directly contribute to your success as a Commercial Property Manager.
Step 6: Become Proficient with Property Management Software
Becoming proficient with property management software is a crucial step towards becoming a commercial property manager.
These tools are used extensively in the real estate and property management industry for tasks such as tracking rent payments, managing maintenance requests, advertising vacancies, and much more.
Several types of property management software are available, each with its own features and capabilities.
Some popular options include AppFolio, Yardi Voyager, and Buildium.
As a commercial property manager, you’ll need to be familiar with at least one of these software solutions.
The exact software you’ll need to learn may depend on the company you work for and their specific technology stack.
You can start familiarizing yourself with these tools by signing up for free trials, reading user manuals, or taking online courses.
Many software providers also offer training programs and tutorials to help users understand their tools better.
You can also learn from experienced property managers and real estate professionals who are already proficient in using these tools.
Remember that this is not a one-time effort; as technology evolves, so does property management software.
You’ll need to stay updated with new features and updates in the software you use regularly.
This will not only make your job easier but also make you more valuable to employers and clients.
Step 7: Obtain Professional Certifications
Securing professional certifications is an important step in advancing your career as a commercial property manager.
These qualifications help to demonstrate your expertise and commitment to the field and can significantly boost your employability.
Several organizations offer relevant certifications.
The Institute of Real Estate Management (IREM) provides the Certified Property Manager (CPM) designation, which requires a certain number of years of professional experience, completion of a series of courses and an exam.
Another option is the Real Property Administrator (RPA) designation offered by the Building Owners and Managers Institute International (BOMI).
This certification focuses on building systems, risk management, and commercial leasing and law.
Remember, each certification has its own prerequisites and requirements.
Some may need a certain level of education, while others require documented hours of industry experience.
Finally, always remember to keep your certifications up to date.
Some organizations require you to take continuing education courses to maintain your certification.
Staying abreast of changes in the field and continually improving your knowledge shows potential employers that you are dedicated and serious about your role as a commercial property manager.
Step 8: Develop Communication and Customer Service Skills
In the role of a Commercial Property Manager, robust communication and customer service skills are key.
These abilities allow you to effectively manage relationships with tenants, vendors, maintenance staff, and other stakeholders.
You will need to hone your communication skills to accurately convey information and handle any misunderstandings or disputes with clarity and professionalism.
This includes written communication for contracts, reports, and emails, as well as verbal communication for face-to-face meetings and phone calls.
Customer service skills are also essential as the satisfaction of your tenants directly impacts the success of your properties.
These skills can be developed by learning how to listen actively, respond empathetically, and solve problems efficiently.
You should be able to manage tenant complaints, respond to their needs promptly, and maintain a professional, friendly demeanor at all times.
You can develop these skills through various methods, such as taking part in customer service training programs, attending communication skills workshops, or even by learning on the job from experienced colleagues.
Remember, good property managers are also good people managers.
Your ability to communicate effectively and provide excellent customer service can distinguish you in the field and contribute significantly to your career advancement.
Step 9: Understand Building Operations and Maintenance
A significant part of the commercial property manager’s job involves overseeing the operations and maintenance of the buildings they manage.
This includes understanding how various systems in the building function – such as the electrical, plumbing, and HVAC systems, as well as the elevators, security systems and more.
It’s important to understand their operation, repair, and maintenance needs to ensure the buildings remain in optimum condition.
Knowing how to coordinate and manage preventive maintenance activities, as well as regular inspections, is crucial.
This knowledge will help you in setting up a proper maintenance schedule, addressing any issues promptly and ensuring the safety and comfort of the tenants.
In addition, it will be beneficial to familiarize yourself with local building codes and regulations.
You should also be prepared to handle emergency situations that might arise, such as power outages or plumbing issues.
This may require being on call or having a reliable team you can rely on for immediate response.
A thorough understanding of building operations and maintenance also aids in effective budgeting, as it can help in predicting future maintenance costs and necessary upgrades.
This skill will also be critical in your interactions with service contractors, as it will enable you to better understand the work needed and ensure that it is completed to your satisfaction.
Make sure to stay up-to-date with the latest building maintenance technologies and trends which can enhance the efficiency and sustainability of your properties, add value to them, and improve tenants’ satisfaction.
Step 10: Network with Industry Professionals and Join Associations
Networking is a crucial step in your path to becoming a successful Commercial Property Manager.
It provides the opportunity to learn from experienced professionals in the field, gain insights about the industry, and potentially land job opportunities.
Attend networking events, real estate conferences, and trade shows to meet industry professionals and expand your professional network.
In addition to networking, joining professional associations is highly beneficial.
Associations like the Institute of Real Estate Management (IREM) and the National Association of Residential Property Managers (NARPM) offer resources, educational opportunities, and certification programs that can further enhance your skills and credibility in the field.
Being a part of these associations can also provide you with opportunities to connect with other professionals in the real estate industry.
This networking can lead to partnerships, shared advice, and job opportunities.
It’s also a great way to stay up-to-date with the latest trends and changes in the commercial property management industry.
Remember, networking is not just about taking from others, but also giving back.
Share your experiences, your expertise, and your time.
Building reciprocal relationships in the industry will strengthen your reputation and increase your chances for success in the field.
Step 11: Stay Informed About Market Trends and Regulatory Changes
As a Commercial Property Manager, it is crucial to remain updated about the latest market trends, economic indicators, and regulatory changes in real estate.
Such information will help you make informed decisions about property management, including rent pricing, property upgrades, marketing strategies, and tenant retention plans.
You can keep yourself informed by subscribing to real estate newsletters, attending industry seminars, participating in webinars, and joining real estate or property management associations.
These platforms offer valuable insights into the latest happenings in the commercial real estate industry and provide opportunities to network with other professionals in the field.
Stay abreast of changes to laws and regulations pertaining to property management, landlord-tenant rights, fair housing laws, and building codes.
These changes can significantly impact how you manage properties, and ignorance of them can lead to legal issues.
Furthermore, familiarize yourself with trending property technologies and software that can enhance your property management skills.
From property management software to digital marketing tools, staying tech-savvy can significantly improve your efficiency and effectiveness as a Commercial Property Manager.
Remember, the commercial property market is dynamic, and staying informed and adaptable is a key component of success in this role.
Step 12: Apply for Commercial Property Management Positions
Having gained the necessary educational background, certification, and relevant experience, your next step is to apply for commercial property management positions.
Start by checking various job portals, real estate websites, and professional networks for available job openings.
These platforms usually have a wide range of vacancies from different companies and in various locations.
A successful application starts with a well-crafted resume and cover letter.
Highlight your accomplishments, skills, and experiences related to commercial property management.
Include details about properties you have managed before, the tasks you were responsible for, and how you added value to these properties.
If you have experience with specific property management software or applications, be sure to mention them.
Before sending your application, research the company thoroughly to understand their culture, values, and expectations for the role.
Tailor your application to reflect your understanding of the company and position.
Networking is also crucial in the commercial property management industry.
Attend industry events, join professional organizations, and connect with like-minded individuals.
Networking not only opens up job opportunities but also allows you to stay updated with industry trends, which can give you an edge during interviews.
Finally, prepare yourself for interviews.
Anticipate questions about your management style, problem-solving skills, conflict resolution, and knowledge about commercial property laws and regulations.
Practice answering these questions and also prepare questions you want to ask about the role and the company.
Remember, the goal is not just to find a job, but to find a position that aligns with your career goals, skills, and passion.
Commercial Property Manager Roles and Responsibilities
Commercial Property Managers are responsible for maintaining property rentals by advertising and filling vacancies, negotiating and enforcing leases, and maintaining and securing the premises.
They have the following roles and responsibilities:
Property Management
- Oversee and manage the maintenance and security of the properties.
- Coordinate with landlords, tenants, and contractors to address repairs and maintenance issues.
- Supervise on-site staff and contractors.
Lease Administration
- Advertise and market vacant spaces to attract tenants.
- Negotiate lease terms and prepare lease agreements.
- Ensure compliance with lease agreements.
Tenant Relations
- Build and maintain positive relationships with tenants.
- Address tenant concerns and resolve issues promptly.
- Manage tenant move-ins and move-outs.
Financial Management
- Set and adjust rental rates by conducting market research.
- Prepare and manage budgets, including operational and capital expenditure budgets.
- Collect rent, manage accounts, and provide financial reporting to property owners.
Regulatory Compliance
- Ensure properties comply with local, state, and federal regulations.
- Stay updated on relevant real estate laws and regulations.
Property Inspections
- Conduct regular inspections of properties to assess condition and ensure maintenance.
- Coordinate and oversee property improvements and renovations.
Contract Management
- Negotiate and manage contracts with vendors and service providers.
- Ensure contracted work is completed satisfactorily and within the agreed timeline.
Documentation and Record Keeping
- Maintain accurate records of property inventory, rental rates, income, and expenses.
- Prepare regular reports on the status and performance of properties.
Emergency Response
- Develop and implement emergency response plans.
- Respond promptly to emergencies and incidents at the properties.
Communication
- Provide regular updates to property owners on the status of their properties.
- Effectively communicate with tenants, staff, contractors, and other stakeholders.
Continuous Learning
- Stay updated on industry trends, market conditions, and property management best practices.
- Attend relevant training and professional development programs.
What Does a Commercial Property Manager Do?
Commercial Property Managers are professionals who manage commercial properties on behalf of the property owner.
These properties could range from office buildings, retail centers, or industrial properties.
They oversee the daily operations of the property, which includes handling maintenance issues, supervising cleaning and security services, as well as managing any renovation or construction work that may be required.
Commercial Property Managers also play a crucial role in financial management.
They are responsible for setting, collecting and adjusting rent levels, ensuring optimal occupancy rates and maximizing property income.
They also manage the property’s budget, keep detailed financial records, and may even be involved in tax planning and filing.
In addition, they serve as the point of contact for tenants, ensuring tenant satisfaction and resolving any complaints or issues that arise.
They also negotiate lease agreements and handle tenant move-ins and move-outs.
Another significant aspect of their job is to ensure the property remains in compliance with all local, state, and federal regulations.
Commercial Property Managers often work with a team of other professionals such as real estate agents, maintenance staff, and security personnel to ensure the smooth operation of the property.
They may also be involved in marketing the property to prospective tenants and conducting regular property inspections.
Essential Commercial Property Manager Skills
- Communication: Strong communication skills are necessary to interact effectively with tenants, owners, staff, and contractors. Clear and concise communication facilitates smooth operations.
- Negotiation: Commercial property managers often need to negotiate lease terms, contracts, and rates with tenants and vendors. Having strong negotiation skills ensures favorable terms and conditions.
- Property Law: Understanding local and federal property laws is crucial to ensure legal compliance and avoid potential disputes.
- Customer Service: Exceptional customer service skills can lead to tenant satisfaction, lease renewals, and positive word-of-mouth marketing.
- Financial Management: Commercial property managers need to manage budgeting, rent collection, financial reporting, and operating expenses. Skills in financial management ensure profitability and fiscal responsibility.
- Maintenance Knowledge: Basic knowledge of building maintenance, including HVAC, electrical, and plumbing systems, can help identify and address issues promptly.
- Marketing: The ability to effectively market properties to potential tenants, including online advertising and property showings, is vital for maintaining occupancy rates.
- Problem-solving: Being able to quickly and effectively resolve issues such as tenant complaints, maintenance emergencies, or financial discrepancies is crucial for the role.
- Organization: Managing multiple properties, tenants, and tasks requires excellent organization skills to ensure everything runs smoothly.
- Property Management Software: Proficiency in property management software such as Appfolio or Yardi can streamline tasks like rent collection, maintenance requests, and financial reporting.
- Real Estate Market Knowledge: Understanding the local commercial real estate market, including average rental rates and property values, can help in setting competitive rates and making informed investment recommendations.
- Leadership: Commercial property managers often oversee teams of staff or contractors. Strong leadership skills can enhance team productivity and morale.
- Time Management: Prioritizing tasks and managing time effectively is crucial in a role where managers may be juggling multiple properties and responsibilities.
- Attention to Detail: Overlooking small details can lead to major issues in property management. Attention to detail helps in areas like lease agreements, property inspections, and financial reporting.
- Adaptability: The property market can change rapidly, and unexpected issues can arise. The ability to adapt and make quick decisions is essential for a commercial property manager.
Commercial Property Manager Career Path Progression
The Foundation: Assistant Commercial Property Manager
The starting point for most Commercial Property Managers is as an Assistant Commercial Property Manager.
Here, you’ll be tasked with supporting the Property Manager in day-to-day operations.
Your responsibilities will likely include basic administrative tasks, tenant relations, and assisting with property inspections.
Here are some strategies to excel in this role:
- Learn the Ropes: Familiarize yourself with property management software and learn the processes involved in commercial property management.
- Communication: Develop strong communication skills, as you’ll be dealing with tenants, maintenance personnel, and senior management on a regular basis.
- Proactivity: Be proactive in identifying potential issues and solving them before they escalate.
The Ascent: Commercial Property Manager
After gaining some experience and knowledge, you can move up to the role of a Commercial Property Manager.
In this role, you will be responsible for the overall operation and profitability of the properties you manage.
Keys to success at this stage include:
- Leadership: Foster a productive work environment for your team and lead by example.
- Problem-Solving: Be ready to tackle issues as they arise, from maintenance emergencies to lease negotiations.
- Financial Management: Gain a solid understanding of budgeting and financial reporting to ensure the profitability of your properties.
Reaching New Heights: Senior Commercial Property Manager
The next step up is becoming a Senior Commercial Property Manager.
Here, you will be overseeing multiple properties and teams, making strategic decisions to ensure the profitability and growth of your portfolio.
To excel in this role:
- Strategic Thinking: Develop and implement strategies for growth and improved efficiency.
- Mentorship: Share your knowledge and experience with your team to foster growth and development.
- Networking: Build strong relationships with tenants, investors, and other stakeholders in the real estate industry.
Beyond the Horizon: Director of Property Management and Beyond
With more experience and achievements under your belt, you may advance to a Director of Property Management or VP of Property Management position.
These roles involve overseeing the entire property management department, making strategic decisions, and ensuring the overall success of the company’s real estate portfolio.
To succeed at this level:
- Leadership: Motivate and guide your team to achieve the company’s strategic goals.
- Decision-Making: Make high-level decisions that will shape the direction of the company’s real estate portfolio.
- Innovation: Stay informed about industry trends and utilize innovative strategies to stay ahead of the competition.
Pinnacle of Success: Chief Operations Officer (COO) or Chief Executive Officer (CEO)
At the top of the ladder, you may reach the role of Chief Operations Officer (COO) or Chief Executive Officer (CEO) where you are responsible for overseeing the entire operations of the company, making crucial business decisions, and setting the strategic direction of the company.
Commercial Property Manager Salary
Entry-Level Commercial Property Manager
- Median Salary: $45,000 – $60,000 per year
- Entry-level commercial property managers typically have 0-2 years of experience and may hold a bachelor’s degree in real estate, business administration, or a related field. Their tasks often involve assisting with daily operations and handling tenant relations under supervision.
Mid-Level Commercial Property Manager
- Median Salary: $60,000 – $80,000 per year
- Mid-level commercial property managers have 2-5 years of experience and are often responsible for managing a portfolio of properties, resolving tenant issues, coordinating maintenance, and ensuring compliance with property regulations.
Senior Commercial Property Manager
- Median Salary: $80,000 – $105,000 per year
- Senior commercial property managers possess 5+ years of experience and typically oversee larger or more complex properties. They are responsible for strategic planning, budget management, and may guide or mentor less experienced managers.
Director of Property Management
- Median Salary: $90,000 – $130,000+ per year
- This role often involves significant experience and leadership skills. Directors are usually responsible for overseeing property management operations across multiple locations, setting strategic goals, and ensuring customer satisfaction and profitability.
VP of Property Management / Real Estate Portfolio Manager
- Median Salary: $120,000 – $170,000+ per year
- These high-level roles require extensive experience and strategic vision. They often involve managing a large portfolio of properties, setting strategic direction for the company’s real estate holdings, and leading teams of property managers.
Commercial Property Manager Work Environment
Commercial Property Managers often work in real estate companies, property management firms, or self-employment through private property holdings.
Their work environment is usually office-based, but they also spend a considerable amount of time visiting the properties they manage.
Their work schedule can be demanding, as they may need to be available 24/7 for emergencies or urgent issues related to the properties they manage.
Commercial Property Managers interact with a wide range of people, including property owners, tenants, maintenance personnel, and contractors.
This job requires excellent communication skills, negotiation abilities, and a keen eye for detail.
As they gain experience and build relationships with owners and tenants, Commercial Property Managers may opt to start their own property management firms or invest in properties themselves.
FAQs About Becoming a Commercial Property Manager
What qualifications do I need to become a Commercial Property Manager?
Typically, you need a bachelor’s degree in real estate, business administration, or a related field to become a Commercial Property Manager.
Some employers may also require a Master’s Degree in Business Administration or related field.
Additionally, you will need a real estate license in most states.
Relevant work experience in property management or real estate can be beneficial.
Key skills include understanding of property law, financial management, negotiation, problem-solving, and excellent communication abilities.
How long does it take to become a Commercial Property Manager?
The time it takes to become a Commercial Property Manager can vary based on your educational and career path.
If you pursue a bachelor’s degree, it typically takes four years.
After graduation, gaining experience in an entry-level property management or real estate role can take an additional 2-3 years.
If you decide to pursue a master’s degree or professional certifications, it may take longer.
Is it possible to become a Commercial Property Manager without a degree?
While a degree in real estate or a related field is commonly preferred, it is possible to become a Commercial Property Manager without one.
Relevant work experience in property management or real estate can sometimes substitute for educational requirements.
However, a degree can provide a comprehensive understanding of business principles, financial management, and real estate law, which may enhance your career prospects.
Is being a Commercial Property Manager stressful?
Being a Commercial Property Manager can be stressful at times, due to the responsibility of managing multiple properties, handling financial reports, dealing with tenants’ issues, and ensuring the properties are well-maintained.
However, this can vary based on the number of properties managed and the level of support provided by the employer.
With effective time-management and problem-solving skills, the stress can be managed effectively.
What are the career prospects for Commercial Property Managers?
Career prospects for Commercial Property Managers are favorable and are expected to grow with the expansion of the real estate market.
The role offers potential for career advancement, with possibilities of progressing to senior management roles or owning a property management company.
The introduction of new technologies in property management also offers opportunities for learning and growth within the role.
Conclusion
And there it is.
Initiating your journey to becoming a commercial property manager is not a walk in the park, but it’s certainly rewarding.
Equipped with the right skills, education, and tenacity, you’re well on your way to making a significant mark in the real estate industry.
Remember, the journey may be daunting, but the rewards are boundless. Your expertise could lead to the next breakthrough in property management that revolutionizes how we live, work, and interact.
So, take that initial leap. Delve deep into learning. Network with industry professionals. And most importantly, never stop improving your management skills.
Because the world of real estate is waiting for what you can bring to the table.
And if you’re looking for personalized guidance on starting or advancing your career in commercial property management, check out our AI Career Path Advisor.
This complimentary tool is designed to offer tailored advice and resources to assist you in navigating your career path effectively.
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