Property management
By: J. David Chapman/March 12, 2020
On Saturday, I had the opportunity to take a large group of aspiring University of Central Oklahoma real estate students to Tulsa to attend a seminar sponsored by the Institute of Real Estate Managers. IREM is an association of property and asset managers who have met strict criteria in the area of education, experience, and ethics. Founded in 1933, IREM has a mission to educate real estate managers, certify their competence and professionalism, and serve as an advocate on issues affecting the real estate management industry. It is an official affiliate of the National Association of Realtors.
Property management is probably the most misunderstood career in real estate. First, some don’t realize it, but property managers in Oklahoma are required to hold a state real estate license and must hang that license with a state of Oklahoma licensed broker. We define property management as a professional activity in which someone other than the owner supervises the operation of a property according to the owner’s objectives.
It includes maintenance and operations, marketing and leasing, human resources, reporting to ownership, and budgeting and finance. That is a lot of expertise for any one person. Property managers also find themselves dealing with all types of property. There is no specific license for property managers and not one for specific property types – just the Oklahoma real estate license. So, property managers might find themselves managing residential, retail, office, industrial, or special use properties.
Property management is a required course in the University of Central Oklahoma Real Estate Program and one of the favorites of most students. CNN Money listed property management as one of the top 20 Young and Restless jobs this year. Employment in the field of property management is predicted to increase 7% through 2028 by bis.gov. The national median salary for an experienced property manager with the IREM certified property manager designation is $126,000 per year.
With rental prices increasing and more people opting for rentals over homeownership (31.5% of occupied houses are rentals), the demand for property management will be increasing significantly. Technology companies have taken note of this growing industry and the complexity of managing properties and have developed software to automate tasks, streamline communications with guests and homeowners, schedule cleanings, and organize portfolios to make our life simpler.
J. David Chapman is an associate professor of finance and real estate at the University of Central Oklahoma (jchapman7@uco.edu).