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While not officially in a recession (at the time of this writing), many fear we are on the precipice of sliding into one. Myriad worries come to mind when the word ‘recession’ slips into everyday speech–one the largest being job security. Unstable career sectors such as the tech field often experience massive layoffs in these times of trouble, and it’s not unreasonable for a lot of people to ask themselves, “Will I have a job tomorrow?”
While no position offers a guarantee against recession, certain sectors are much more stable and offer consistency by nature, such as property management. People will always need a place to live, despite economic conditions, so there are always potential clients and opportunities. As interest rates increase, so does the cost of mortgages, and fewer people look to buy homes–so they’ll need to rent (more tenants available). Additionally, those who entertain selling their properties will find greater challenge due to the reduction in potential buyers, and may pivot to an income property strategy instead (more owner/investors available).
Now, you may be asking yourself, “I don’t know anything about property management, so how is that an option?”–and that’s a valid question. While there is a learning curve to any industry, property management lends itself quite readily to skills you may already possess which transfer over and make the leap a lot less complicated than you may think. At its heart, property management is about two main elements: people management and asset management. Your existing skill set very likely transfers into one or both of these aspects, and I’ll offer some insight into how below.
People Management
Whether it’s owner/investors, tenants, maintenance vendors, or staff, we as property managers primarily manage people.
Sales, hospitality, and service experience all very powerfully transfer over when managing the people involved with property management. Pain points arise for everyone, and your ability to listen, effectively communicate, and problem solve will set you up for success.
Sociability and networking skills make connecting with others–such as potential investors–much easier and more effective.
Office/clerical skills make for efficient organizing of both communication and records.
Asset Management
The more traditional concept of property management–looking after a property itself–is taken to another level when we consider income properties as assets for our owner/investor clients. This view expands the stigma of property managers being simply ‘rent collectors’ and opens up a broad world of comprehensive care and value-added service that Real Property Management is known for.
Given the term ‘asset’ is largely used within the accounting profession, accounting/bookkeeping skills you may possess play a huge role in property management. Accurate record keeping is vital, as is an understanding of payments and processes from both the tenant and owner/investor side.
Logistical and planning backgrounds will see a lot of alignment with vendor and inspection coordination.
Communication skills are again incredibly important (as they always are), as are ‘soft’ skills like intuition and people-reading.
Maintenance and general home ownership experience can play huge roles, as well, and allow for an understanding of both tenant and owner sides of the coin.
These are just some examples of how skills you may already possess can transfer over into a career that is incredibly rewarding, provides a much-needed service, and holds quite stable despite economic indicators. If you’re interested in exploring property management further, reach out to us today to learn more!