Where the industry glamorises sales, property management can be just as exciting. One of the core real estate pathways in Australia, property owners manage the upkeep and tenancy of residential, commercial, and industrial properties.
As of 2020, there are an estimated 41,000 people working in property managers across Australia — forming over a third of the entire real estate industry (according to Market Research Report, IBIS world).
So, how much does a property manager earn, and is it a viable career path for someone who’s looking to start a career in real estate?
How much does a property manager make in Australia?
On average, a property manager in Australia will earn an annual salary between $70,000 to $85,000, with the potential for higher earnings in metropolitan regions like Sydney and Melbourne.
As part of managing the property on behalf of clients, the role of a property manager is to secure tenants, collect rent from existing tenants, and resolve any disputes or complaints between tenants and owners.
Most property managers work within an agency — this allows them to work with team members that handle the more administrative aspects of property management, such as drawing up leasing agreements. In this arrangement, property managers are usually paid a fixed salary.
Property managers can also work independently, but this means that their earnings will be fully dependent on how many clients and properties they are actively managing.
How does a property manager get paid in Australia?
Property managers charge fees for their services — there are two main fees: a letting fee, and a management fee.
Letting fees are charged by a property manager to source a new tenant for the property. This fee typically equates to 1-2 weeks of rent for the property.
Management fees are an ongoing payment for the day-to-day upkeep and management of the property. Management fees are based on a percentage of the weekly rent, ranging from 5-12%.
In the case of a property management agency, clients pay the fees to the agency, which then pass on the earnings to associated property managers in the form of a fixed salary. Depending on the type of employment arrangement, a property manager may also be awarded commission for securing clients for the agency. Independent property managers will receive the fees paid by their clients as earnings.
More properties managed, more earnings
Having more clients and a large portfolio of managed properties will lead to greater earnings for property managers. The average number of properties managed by a property manager in Australia is 20, but more capable property managers have been known to maintain portfolios of over 100 properties at a time.
Location affects how much a property manager makes
Property managers rely on the availability of clients to make their earnings. Regions, where the lease rate is high ( major cities), will have a higher local demand for property management, increasing potential earnings for a property manager.
Property value & property manager earnings
The higher the value of a property, the more desirable it will be. Property managers can charge higher fees for a high-value property due to increased time and resource requirements in managing the property.
Scope of services for property managers
Property managers offer different levels of services based on the needs of the property and the client. The more comprehensive the range of services required of a property manager, the more they can charge and earn from the client to reflect the value of their services. For example, some property managers only cover rent collection and basic property maintenance, while others can include more comprehensive services that extend to ensuring that the property remains in legal compliance with state and council regulations.
How to start working as a property manager
Considering that almost 54% of Australian properties are managed by a property manager (REIA, 2015), property management is an underrated career path – one that can be very lucrative!
Becoming a property manager is a matter of getting the right certification to start working in your state or territory. Here are the course requirements for each state:
New South Wales – CPP41419 Certificate IV in Real Estate Practice
Queensland – Resident Letting Agent Licence
Victoria – CPP41419 Certificate IV in Real Estate Practice
South Australia – Property Manager Registration (PMR)
Western Australia – Restricted Property Management Registration
Australian Capital Territory – CPP41419 Certificate IV in Real Estate Practice
