Numbers Game: Benchmark Your Position in Property Management with the Results of New IREM Member Demographics and Earnings Studies
The results are in from IREM's 2004 Profile and Compensation Studies of Certified Property Managers and Accredited Residential Managers. Surveys were posted online beginning in January 2004. An e-mail message was sent to all CPM members, candidates and ARM members inviting them to participate. Response rates were 26 percent for CPM members and candidates and 28 percent for ARM members.
CPM Members, Candidates
The average CPM respondent is 49 years old, with men comprising 55 percent of CPM members and women 58 percent of candidates. More than 68 percent hold an undergraduate degree and 67 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 21 employees.
Compensation and Benefits
CPM members in the study sample earn a median total compensation of $95,000, 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, health insurance, sick days and professional association dues. CPM members in the Pacific region earn the highest total compensation. Remuneration increases with years of experience, level of education and age. Owners or partners of firms and those employed by investment or trust companies report receiving greater compensation than their peers. Those who manage homeowner's associations receive among the least amount of compensation.
The median ARM respondent is 43 years old and has 13 years of property management experience. The majority of ARM members surveyed manage conventionally financed apartments (56 percent) with another 22 percent responsible for federally assisted units. Moderately priced units are managed by 48 percent of the ARM sample, luxury units by 17 percent, low-income housing by 24 percent and elderly housing by 5 percent. Women predominate the ARM sample at 74 percent. A majority of respondents (60 percent) work for a property management firm and 10 percent for a full-service real estate company. Most all (93 percent) have supervisory responsibilities and manage a median staff of nine employees, which includes site managers, management office personnel, security guards, maintenance staff and recreational personnel. Portfolio size varies widely with a median of 320 units and a mean of 730. The majority of ARM members (51 percent) have some college education and 35 percent hold an undergraduate or advanced degree.
Compensation and Benefits
The average total annual compensation for an ARM respondent is $53,574, which includes a mean base salary of $47,369, 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 health insurance being the most common. Total compensation and average salaries are highest among those in the Northeast, Mid-Atlantic region. Compensation increases with years of experience and education, while little variance is noted by the type of property managed. Those working for full-service real estate companies have the highest average total compensation. The type of unit managed affects compensation, with those responsible for luxury units earning the highest salary and total compensation. Portfolio size and number of employees likewise impact compensation, which increases with the number of units and employees managed.
Detailed results and analysis from these studies as well as the 2004 Accredited Management Organization Profile and Compensation Study are available for purchase in the IREM store at www. …