Can one get rich from owning a property management company?

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Forum -> Working Women

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amother

Wed, Sep 21 2022, 9:26 pm

How lucrative is property management? Have you ever heard of someone who got rich from property management? Asking for someone who's considering going into this line since there is a very high demand.

amother

Firebrick

Wed, Sep 21 2022, 9:28 pm

You do not get rich from it unless you own the buildings itself or manage high end Manhattan style buildings. It is a HUGE headache. Good luck.

amother

Aqua

Wed, Sep 21 2022, 9:40 pm

Sorry, but rich ? What in the world does that mean?
Is it a lucrative career? Can someone support a family ? Or will you make enough money to buy a sports team, donate an entire yeshiva, make enough money that your great great grand children will never have to work ?
Like with any business if it is successful and it scales then yes one can have a good living from it.

amother

Brickred

Wed, Sep 21 2022, 9:44 pm

amother Aqua wrote:

My Step MIL and FIL have this business (outside the US) and they are very, very successful. They live a very comfortable life. Do they have buildings names for them? No. But most people don’t. But financially they want for nothing

amother

Wed, Sep 21 2022, 10:06 pm

amother Brickred wrote:

Do they manage very big buildings? Or they manage more like single family homes?

amother

Brickred

Wed, Sep 21 2022, 11:07 pm

amother OP wrote:

Do they manage very big buildings? Or they manage more like single family homes?

Buildings. They don’t have high rises in their country but it’s multi story buildings

amother

NeonBlue

Thu, Sep 22 2022, 1:42 am

I would assume that you would have to manage a company that oversees a lot of apartment buildings to get really rich from this. I just hope my parents sit up their home in Israel and oh my gosh I had no idea that it was so much work. And so many hours so obviously you have to have a huge company to be making enough money per hour to get rich from it.

vintagebknyc

Thu, Sep 22 2022, 9:35 am

In NY State, you need to be a licensed property broker to be a building manager.

amother

Royalblue

Thu, Sep 22 2022, 10:39 am

Going into a lone of work were you might "get rich" is a set up for disappointment.

Better to go into a line that has a good likelihood of providing a respectable livelihood.

watergirl

Thu, Sep 22 2022, 10:53 am

The manager is paid a salary by the owner of the property. His wealth will depend on that salary. If you open a property management company, you will set your rates and try to find owners who will contract with you to manage their properties. They will pay you your fee and you have to cover the costs to manage it, which includes hiring the proper staff, paying for repairs or getting the owner to pay for them... I rented a house once and the property manager had a contract which allowed him to charge X amount to the owner and he would cover maintenance (not major repairs). So he got to keep the difference. That meant all the repairs he did on our rental house was done as cheaply as possible because he wanted to keep as much as he could. It was a miserable place to live. He saw every one of our reasonable requests as taking food off his table.

amother

Daisy

Thu, Sep 22 2022, 11:10 am

watergirl wrote:

That meant all the repairs he did on our rental house was done as cheaply as possible because he wanted to keep as much as he could. It was a miserable place to live. He saw every one of our reasonable requests as taking food off his table.

That’s terrible for the property owner as well because it isn’t being maintained well. I hope that’s not the way most management cos earn their money.

amother

Milk

Thu, Sep 22 2022, 11:25 am

Like with anything else, there are people who will make barely any money, and people who make tons. They are people who will work hard, and people who sit back and do not put an extra medicine out at work or have aggravation. And it is most certainly not that the one who works hardest is the one who makes the most. There are those who are honest and those who cut corners. Like in every field.
(Just for reference, on the other thread about how much people make re:education, someone had posted that their husband is a travel agent who makes 1M, and maybe it was the same person or somebody else who stated that they have many family members who make over 500 K, being travel agents as well. I googled glass door/other information because I was curious as to how much travel agents typically make, and what the job description is in this market, with everything being available online. They said the average travel agent makes between 32K - 79K.
Life is a combination of what you do and who you do it, what you know, who you know, mazel……)

rkay

Thu, Sep 22 2022, 12:12 pm

watergirl wrote:

Most Property Management companies take a percentage of the total rent roll. Money for repairs is paid by the owner/ income to the property.

amother

Thu, Sep 22 2022, 12:20 pm

Thanks for everyone's responses.

If you had a choice of either owning an accounting firm or owning a property management company, which would you think will be more profitable?

amother

Royalblue

Thu, Sep 22 2022, 12:34 pm

amother OP wrote:

Thanks for everyone's responses.

If you had a choice of either owning an accounting firm or owning a property management company, which would you think will be more profitable?

If you're going to "own", which do you have experience in?

For both of these, if there is "wealth" it will probably come from investments you get access to and have the expertise to evuluate through your company.

Either type of firm could stay small, leaving you with a relatively small salary. I know plenty of people like that.

Are you looking to build up this company or buy one?

shabbatiscoming

Thu, Sep 22 2022, 12:40 pm

amother OP wrote:

Thanks for everyone's responses.

If you had a choice of either owning an accounting firm or owning a property management company, which would you think will be more profitable?

What a bizarre question. If you are going to own any company, it better be something you know how to do. And it takes to to become profitable, even an accounting firm. It could make millions or it could not. So very many factors.

watergirl

Thu, Sep 22 2022, 12:48 pm

amother OP wrote:

Thanks for everyone's responses.

If you had a choice of either owning an accounting firm or owning a property management company, which would you think will be more profitable?

I would own the one I have training and experince in. If that's neither of them, then I would buy neither.

amother

Thu, Sep 22 2022, 1:37 pm

watergirl wrote:

I would own the one I have training and experince in. If that's neither of them, then I would buy neither.

The person I'm asking for has lots of experience in both.

amother

Chicory

Thu, Sep 22 2022, 2:07 pm

If it’s NYC they will torture you alive as the landlord/management

amother

Royalblue

Thu, Sep 22 2022, 2:29 pm

amother OP wrote:

The person I'm asking for has lots of experience in both.

Then curious why are you asking here on imamother?

If they're in the industry they've seen what goes down.

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