By the Numbers: Benchmark Your Position in Property Management with the Results of New IREM Member Demographics and Earnings Studies
The results are in from IREM's 2007 Profile and Compensation Studies of CERTIFIED PROPERTY MANAGERS[R] and ACCREDITED RESIDENTIAL MANAGERS[R]. Surveys were posted online beginning in early 2007, and e-mail messages were sent to CPM Members and Candidates and ARM Members inviting them to participate. Response rates were 20 percent for CPM Members and Candidates and 21 percent for ARM Members.
CPM MEMBERS, CANDIDATES
The average CPM respondent is 49 years old, with men comprising 52 percent of CPM Members and women 62 percent of CPM Candidates. About 69 percent of CPM Members and Candidates hold an undergraduate degree and 63 percent work for a property management or full-service real estate firm. Respondents average 20 years of experience in the property management field. Office buildings are the property type that accounts for the largest share of CPM-managed portfolios, followed by conventionally financed apartments. CPM Members surveyed typically hold executive or property manager/supervisor roles and supervise a staff of 22 employees.
COMPENSATION AND BENEFITS
CPM Members in the study sample earn a median total compensation of $103,000, which includes a base salary for property management and additional real estate income from sales and leasing commissions. Numerous fringe benefits were reported and most frequently include vacations, holidays, sick days, health insurance and professional association dues. CPM Members in the Pacific region earn the highest total compensation.
Remuneration typically increases with years of experience, level of education, and age. Owners, partners, presidents/CEOs and directors of firms report receiving greater compensation than other respondents. CPM Members who work for development companies, full-service real estate companies, REITs and investment companies typically receive higher compensation (based on median values) than those who work for other types of employers. Similarly, CPM Candidates who work for development companies, REITs and investment companies were the best compensated.
The average ARM respondent is 42 years old and has 14 years of property management experience. Over 46 percent of ARM Members surveyed manage conventionally financed apartments with another 20 percent responsible for federally assisted units. Moderately priced units are managed by 47 percent of the ARM sample, luxury units by 19 percent, low-income housing by 21 percent and elderly housing by 7 percent. Women predominate in the ARM sample at 74 percent. A majority of respondents (55 percent) work for a property management firm and 8 percent for a full-service real estate company. Most (95 percent) have supervisory responsibilities and manage a median staff of eight employees, which includes site managers, management office personnel, security guards, maintenance staff and recreational personnel. Portfolio size varies widely with a median of 270 units and a mean of 706. The majority of ARM Members (48 percent) have some college education and 38 percent hold an undergraduate degree.
COMPENSATION AND BENEFITS
The average total annual compensation for an ARM respondent is $57,893, which includes a mean base salary of $51,335, plus rental discounts and other real estate income. A wide array of fringe benefits are offered to ARM respondents, with vacations, holidays, sick days and professional association dues being the most common. Total compensation and average salaries are highest among those in the Northeast and Mid-Atlantic regions. Compensation generally increases with experience and higher levels of education.
With regard to property type managed, those who manage condos/co-ops/HOAs and conventionally financed apartments have the highest average compensation, whereas those who manage low-income housing earn the least. Those working for REITs have the highest average total compensation. …