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What Is A Real Estate Portfolio Manager?

People or organizations with an extensive collection of investment properties will most likely have a real estate portfolio that details your assets. However, staying on top of all these at once can be difficult, which is why they often ask for a helping hand. That’s when a real estate portfolio manager comes into play. 

When people have many assets that bring them revenue throughout the year, they want to ensure they are utilized to their maximum potential. However, not everyone has the skills and time to keep an eye on this, so they need someone else to do the job.

Below is a rundown of everything about real estate portfolio managers and how you can become one yourself. 


What real estate portfolio managers do

Real estate portfolio managers work hard in their job, and that’s due to the large number of duties they are given. Below are some of the main tasks they deal with:

  • Allocating the assets within each property
  • Identifying any risks in the portfolio and adjusting them
  • Overseeing all financial transactions through the use of a balance sheet
  • Ensuring every property is serving its intended purpose
  • Managing all elements of the property
  • Identifying any potential investment opportunities
  • Analyzing the market and staying up to date on trends
  • Negotiating with sellers and potential buyers


Income of a real estate portfolio manager

Becoming a real estate portfolio manager is a good job, and it comes with a respected salary that you can increase throughout your career. Due to this, your annual income will depend on your experience and who you are working for. At the moment, you can earn on average $105,000 a year when a medium level of experience and work your way up to as high as $275,000 a year. It has also been predicted that this wage will increase in the next ten years, so it is a good career to get into right now.


What you need to become a real estate portfolio manager

Not everyone can become a real estate portfolio manager, so you may have to collect a few of the following things to get started on this career path:


Bachelor’s degree

Many employers will ask for at least a bachelor’s degree in a field related to real estate; however, you may have to have a master’s degree for jobs with higher requirements. Since the role often requires knowledge of finance and business, some of these related degrees may be accepted as well.


Some level of experience

While everyone has to start somewhere, you will need some level of experience for the higher-paying jobs. Before you get started on an entry-level role, you will most likely have to receive some training to get used to the company and how to handle its processes.


Various certifications

Another way to gain experience and put yourself ahead of the competition is by securing several different certifications and licenses. They often involve taking courses that can provide you with extra knowledge about the role and what is expected of you. It will also be more impressive for future employers.


Bespoke skills of real estate portfolio managers 

Just like with any other job, employers will expect you to have a wide range of desirable skills. You’d be well suited for the job if you have any of the following:


Good communication

No matter what industry you work in, good communication is a must. As a real estate portfolio manager, you deal with many different people and organizations daily, so you need to know the best ways to present information to them, answer any of their queries, and handle any conflict. 


Manages time effectively

The job does require a large workload with various tasks to sort through each week. Due to this, they need to ensure they can plan effectively and ensure each job gets done before the deadline. This will ultimately help your career succeed and keep your clients happy with your work.


Strong organization

The job requires you to handle many different records and paperwork, so you must be organized to ensure that you stay on top of everything. There will also be sensitive information you need to keep hold of. By keeping a suitable filing system and knowing where everything is, you can access all you need when the time arises.


Understands finances

Since the job requires being responsible for most of the financial aspects of the company they work for, they need to have a fair amount of financial and accounting knowledge. You may need to have experience optimizing your client's cash flow and staying on top of a budget.


Marketing knowledge

A real estate portfolio manager also helps with the sale of assets; therefore, they will need to conduct the most effective marketing strategies for the property. Once a marketing campaign has been released, they will also need to analyze the results and see if they can use it in the future. 


Where real estate portfolio managers work

So, does a real estate portfolio manager work in an office? Or do they work directly from the properties? To be honest, there is not one answer. Instead, they work in various different locations depending on the task at hand. They may work from the company's corporate offices if they deal with paperwork and finances. Sometimes they may need to visit the properties, whether it’s for an open house or private viewing as well. If you are considering this career, you will have to keep in mind that there may be a lot of travel involved. 


Trends for real estate portfolio managers to follow

Once you have got the job, there are still things you need to do to enhance the way you work. One of them is staying up to date on these trends:


Current growth

The real estate industry is constantly changing, and it has grown a lot in recent years, with properties becoming attractive to potential investors. It is seen as a safe investment and can provide returns for an extended period of time.

If growth is increasing, real estate portfolio managers will need to stay updated on new methods for organizing and maintaining assets. The best way to do your job effectively is to keep an eye on the growth throughout the year. 


Real Estate Investment Trusts

A trend that has been building up for the past few years is the popularity of Real Estate Investment Trusts (REITs). They allow investors to continue to increase their revenue without actually having to purchase any new properties.

If more investors and companies start to gain interest in REITs, then real estate portfolio managers will need to expand their knowledge on handling them as assets. This involves how to invest in them and following their regulations. 


Thinking about the future 

The best managers are starting to plan for the future to make the most of their assets and gain higher returns on investments. This is largely due to the changing market, the introduction of REITs, and more people looking to invest in properties. 

Planning ahead gives companies an advantage, so real estate portfolio managers need to identify the best methods to do so. It will help them enhance their relationships with their clients and gain good experience for future jobs. 


Starting as a real estate portfolio manager

So, if you have all the qualifications and skills, how do you then become a real estate portfolio manager? It is a highly lucrative career and can help you advance to many different roles once you’ve gained a wide range of experience. You're ready to go if you can work hard under pressure and meet deadlines. 

Before you can start applying for jobs, you’ll need to secure a degree in business, finance, or real estate. Once you have this, you’ll also need to gain at least the real estate investment manager certification (CREM). After this, you’re ready to go and start your career. 


How to advance as a real estate portfolio manager

If you’ve been a real estate portfolio manager for a while now, you may be getting to the time when you want to advance further in your career. Luckily for you, there are several great advancement prospects you can check out. One of the first ways to advance is by asking your current company if there are any higher vacancies. If not, it may be time to look for jobs with higher pay rates. If you’re feeling ambitious enough, you may even want to start your own real estate investment firm. 


Final thoughts

A real estate portfolio manager is a fantastic job to have, but it’s not an easy one to get into. If you’re passionate about joining this industry and starting your career, you may have to put in a lot of hard work. If you have little to no knowledge or experience, you may want to consider going back to school. For those already in the industry, a few extra classes or certifications may be the way to go.