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For what it’s worth

A New Look at Compensation for Property Management

By Maggie Callahan
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High job demand and an increasing need for more specialized knowledge are contributing to the continuing increase in CPM compensation, the 2019 IREM CPM Profile and Compensation Study shows.

Conducted in March, 791 CPMs responded to survey questions about demographics and compensation, showing that for those CPM designees in the U.S., median total compensation, which includes base salary, commissions and other compensations, grew to $126,000, up from $123,025 in 2015.

Determinants of Bonus or Commission
Factor CPM Members CPM Candidates
Financial performance of your company 57.4% 42.2%
Financial performance of your properties/portfolio 39.6% 46.5%
Meeting specific goals for your properties/portfolio 44.5% 48.3%
Physical condition of your properties/portfolio 10.2% 13.5%
Lease status of your properties/portfolio 10.1% 17.4%
Fixed amount or percentage: Annual bonus, holiday bonus, % of salary 3.9% 5.2%
Personal performance 2.3% 3.5%
Owner or Client discretion 1.1% 0.4%
New business brought in 2.1% 0.0%
Client/Resident/Tenant Satisfaction 1.1% 1.3%
Other 9.0% 7.0%

 

David Funk, co-founder of the SelectLeaders Job Barometer and the executive director of the American Real Estate Society (ARES), says one of the drivers of asset and property management wage and demand growth is the increasing need for a more sophisticated skill set for some jobs.

“Over the last decade, we’ve observed the transformation of the property and asset management role to include more financial analysis, investor relations and understanding the use of proptech. The need for this knowledge has really ratcheted up the requirements in these roles and, correspondingly, the compensation,” said Funk, an IREM Member and CPM Candidate.

Compensation by Type of Organization
CPM Members who are employed by investment companies, privately owned companies and development/construction companies receive the highest average total
CPM Members Average Median
Type of Organization Salary Total Compensation Salary Total
Compensation
Investment company $147,035 $243,455 $137,500 $175,000
Private owner/investor $128,709 $182,859 $111,125 $131,000
Development/Construction $133,938 $176,732 $126,000 $155,000
Property management $114,828 $160,680 $100,000 $120,426
Full-service real estate $115,104 $150,361 $104,721 $121,000
Corporate real estate $114,956 $143,002 $103,000 $121,500
REIT $117,203 $140,438 $115,000 $140,550
Not-for-profit management company/agency $110,767 $133,270 $97,500 $97,500

Compensation by Type of Property Managed
CPM Members Average Median
Property Type Salary Total Compensation Salary Total
Compensation
Apartments (Conventionally financed) $132,281 $207,216 $114,700 $145,000
Mixed-use properties $106,719 $170,724 $95,000 $145,000
Industrial/Industrial Parks $119,079 $158,373 $102,625 $120,500
Affordable/Federally assisted property $117,260 $151,608 $100,000 $120,926
Single family housing $98,492 $149,386 $75,000 $137,000
Office buildings $118,637 $146,125 $110,000 $128,688
Affordable/Public housing $111,971 $143,864 $102,000 $120,000
Condos/Co-ops/HOAs $121,077 $138,554 $108,000 $118,000
Senior housing $114,542 $132,082 $110,615 $114,615
Medical buildings $109,362 $130,987 $98,750 $104,000
Shopping centers/Retail $100,952 $130,146 $95,000 $114,350

Compensation by Position in Company
CPM Members Average Median
Position in Company Salary Total Compensation Salary Total
Compensation
Owner/Partner $142,744 $274,467 $115,000 $256,500
President/CEO $139,739 $246,948 $114,700 $178,000
Officer/Director/VP $143,676 $196,026 $135,000 $164,855
Department head $123,111 $152,546 $127,000 $152,500
Asset/Portfolio manager $114,516 $137,215 $105,000 $126,750
Regional/District manager $107,425 $125,646 $100,002 $119,801
Facilities manager $96,994 $106,790 $100,000 $105,687
Property manager/supervisor $89,619 $100,988 $90,000 $101,676

 

“The increasing inclusion of asset/property managers at the investment committee and C-suite level reinforces the trend that compensation growth will continue for CPMs.”

Among the many highlights, the report revealed:

  • The average CPM is 52 years old and has a college degree, and the majority of CPM Members work for property management or full-service real estate companies. About 11 percent of CPM Members identified as self-employed.
  • CPM Members who are employed by investment companies, privately owned companies and development or construction companies receive the highest average total compensation. Employees of development or construction organizations saw an average salary increase of about $20,000 the last few years—from $113,705 in 2016’s report to $133,938 in the current one.
  • A CPM typically holds a property manager/supervisor or executive level position and on average has 50 employees under his/her supervision.
  • The property types that the largest percentage of CPM Members are involved with are office buildings (41 percent), conventionally financed apartments (33 percent), shopping centers/retail properties (25 percent), industrial/industrial parks (15 percent), federally assisted properties (15 percent), medical buildings (11 percent) and condos/co-ops/HOAs (7 percent).
  • CPM Members who managed conventionally financed apartments continued to see wage growth, reporting a median salary of $114,700, up slightly from the 2016 findings when the reported median was $112,000.

“Apartments have really been on a 10-year tear, so there is a correlation between the increase in apartments and the demand for property management roles,” Funk said. 

the Journal of Property Management staff

Maggie Callahan is a contributing writer for JPM®.

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