Want to become a property manager? Here's how to start (and how to increase profits)

In the most recent understanding across Europe, a property manager is defined as a professional or company that oversees short-term rental accommodations and related services. This includes online property marketing, fee collection, guest reception, management of cleaning services and other tasks related to property maintenance and guest satisfaction.

We can therefore say that the property manager is a professional in the non-hotel sector specializing in the management of real estate properties on their own or on behalf of third parties, with the ultimate goal of ensuring maximum return.

To achieve this, the property manager personally, or in synergy with their collaborators, deals with the following activities:

• Assessment of the property and the local market to determine market value and earning potential
• Studying competitors to establish a differentiation strategy
• Organization of professional photo/video services with possible home-staging to create effective promotional material
• Online promotion and advertising of properties through the main platforms based on the target clientele the property is aimed at
• Booking management, from the first interactions with guests to the collection of payments and related accounting
• Relationship with guests at every moment of their stay, from booking to check-out, to ensure quality of experience and maximum satisfaction
• Coordination of cleaning and maintenance activities (ordinary and extraordinary) of the properties.
• Monitoring reviews and online reputation, responding to reviews to maintain a positive image.
• Optimization of rates to maximize occupancy rate and property yield.
• Supervision of additional services such as transportation, tours or experiences to improve the offer to guests.
• Management of legal documentation and compliance with local regulations relating to short-term rentals.
• Compiling detailed financial reports and budgeting to ensure effective and sustainable financial organization.

Since property management is an ongoing rather than an occasional activity, VAT registration is mandatory regardless of the number of properties managed.

Property managers must also choose the correct business classification code (NACE code) to match their business activities with tax and contribution regulations. For most European property management services, the relevant NACE code is 68.32, which covers "management of real estate on a fee or contract basis", including rent collection, maintenance and other management services.

Starting a property management business requires official registration, which typically involves filing with the appropriate business registry and complying with local administrative requirements, such as filing a business start-up declaration (if applicable) and registering with the local social security office according to the chosen contribution scheme.

The expansion of property management has led to a proliferation of courses, webinars, and certifications for those entering the field. However, there is no single standardized path to becoming a property manager. For guidance, professionals can turn to prominent industry associations in various European countries that offer resources, networking, and guidance.

However, it is possible to define a minimum set of skills that are absolutely necessary to acquire in order to efficiently manage properties and maximize returns. Here they are.

Knowing how to choose and then use the best management software (PMS) is a decisive factor. When making your choice, you will need to take into account the features offered by the software, preferring those that can also support multi-properties, i.e. that allow you to manage more than one property through the same platform, even if they belong to different owners.

In addition to this, opting for a modern all-in-one management software in the cloud will allow you to have every aspect of management under control: from reservations to communication with the Public Administration, from OTA and Metasearch channels to billing and accounting.

A thorough understanding of the dynamics of the short-term rental market is the necessary basis from which to implement effective positioning and revenue management strategies.

For example, the ability to understand seasonality and fluctuations in demand in your location will allow you to set more competitive prices to ensure a high occupancy rate and consistent returns.

Again, in the absence of in-depth experience or an expert partner, the best choice is to select the right dynamic pricing software to integrate with your management software, which allows you to monitor the market quickly and make informed and timely pricing decisions.

If you want to know how many accommodation facilities have chosen to automate their revenue management, we recommend you read our article where you will find all the updated statistics.

Effective communication is essential for a property manager in managing relationships. With owners, transparency builds trust and collaboration, thanks to clear updates on income, expenses and issues, avoiding misunderstandings and ensuring peace of mind.

With guests, professionalism and promptness improve the experience, quickly solve problems and encourage positive reviews. Finally, clear communication with employees and collaborators ensures efficient coordination, smooth operations and high quality service.

Financial management is a fundamental skill for a property manager and should not be underestimated. Knowing how to accurately monitor income and expenses and draw up detailed reports is essential to make informed decisions and maintain a clear view of profitability.

Effective financial management allows you to optimize costs and ensure a constant profit for the properties managed. As mentioned above, using good management software can be of great help in analyzing data and creating financial reports.

Online you can find numerous estimates on the "average salary" of a property manager, however establishing precisely how much a property manager earns is complex if not impossible, since this depends on numerous variables.

The first variable concerns the type and quantity of services offered: a property manager who limits themselves to the basic management of bookings and reception will have lower earnings than those who offer complete property management from every point of view.

The location of the properties also plays an important role: managing properties in central or highly sought-after areas can guarantee higher earnings, while less touristy areas or those with a marked seasonality can lead to more inconsistent revenues.

Finally, we must consider the number of properties managed: only those who manage to scale their business and increase their "real estate portfolio" through strategic investments can expect to see their margins grow exponentially.

Are you wondering how to scale your property management business, find new properties to manage, and maximize profitability?

Download our guide: inside you'll find the 10 tips from Luca Rodella, co-founder of Smartpricing and 1Dest.com, a company specializing in property management services founded in 2018 and managing over 80 properties.

Download it now!