Transitioning from Social Services

Good Evening,

I am currently trying to make a career change from social services to leasing and would be grateful if someone could answer a few questions I have.

I have recently been applying to various leasing jobs and even had an interview that went well today. The problem is, they only offer around a 24k base. The commission offered was 1 percent with most rentals being between 12k-19k per year-- 261 units and 2 leasing agents. Do you think it is unrealistic to make base closer to 30k in a major city-- Pittsburgh? It is a bit nerve racking to make a career move in which I would make substantially less than my current position.

I have a B.A. in Psychology and 10 years career work (some of which includes working with subsidized housing). Additionally, I completed pre-licensing real estate sales classes in Ohio prior to moving to PA (I have recently send my transcripts to the PA commission to gain approval for my course work so that I can take the PA Real Estate Sales exam). Is there anything else I can do to make myself marketable... certifications (local only), online programs, etc?

Thanks in advance!

Hi Jessica,

You've started out on the right foot by coming to MFI. Leasing pay can vary wildly. For instance I pay around $12 per hour with $45 commission per lease and $35 per renewal. My sister property pays around $13 with the same commissions. The difference is different owners, (we are 3rd party managed). There are some sites that pay quite a bit less and some that pay considerable more depending on the challenges, location, occupancy, etc. Here's the good news, in our industry it's relatively easy to advance if you prove yourself to be a valuable asset. I was only a leasing consultant for 3 months, and had my 1st site within 9 months. It just took a lot of hard work and a can-do attitude. Not many industries allow for that kind of fast track.

If you need more money, hold out for it. If you're good at it, and the opportunity comes your way, you could move up to manager within a few short months. There's not a lot of difference in the 2 positions and with your background, you should be able to handle the financials well.

I doubt you could see more than $12-$14 per hour plus bonuses as an inexperienced leasing consultant.

At a manager's meeting I went to when I worked for Pinnacle, we all agreed "Hire for attitude, train for skill."

The better the attitude, especially the willingness to do more than you're expected to do, the further you will go in this business and quickly.

Good luck!

Hi!

The DC Market can be more like $14-$18 per hour depending on experience, type and size of the company, and the type of property, with commission added on top. If you are lucky enough to get on a lease up community, the commission can really boost up your pay.

One thing that you should keep in mind if you choose to stay in PM as a career. IF you decide that you want to go the management route, when you step up into an Assistant Mgr position, your gross pay COULD go down (many leasing agents make more based on the amount of commission they earn than an APM does).

It's a great industry and one that I love (and I started in 1991 as an Activities Director making less than what the job you are looking at is paying)!!!

Good Luck!

Jessica,
My first question is this - why do you want to transition into the multifamily industry? Is it is because you think it is easy (I know a lot of people who thought going into real estate full time was easy. You know, show a few houses, get a couple of listings, and BAM, you're making money.) Is it because you have always had a love of people and want to help them (thus you have a degree in psychology and work in social services.) Or, you are getting kind of burned out and stressed and need to transition to something less stress inducing?

Your reasons don't matter to me but I think everyone making a life change should recognize why they are doing what they are doing. Otherwise, you may not have the passion to complete the career transition.

Okay - have you shopped apartment communities yet? Have you interacted with leasing professionals yet? Perhaps you live in a nice apartment community already. I always recommend people interested in leasing as a profession do this (shop a community) at least once or twice. The next thing is to consider all your current financial obligations and whether or not a pay cut is feasible. I think one can definitely take the cut if the passion is there, the drive to make a difference is there, and you can decide to do more with less. I do see many leasing professionals is big cities who make $35+ a year, but those are leasing professionals who have super high closing ratios, tons of natural talent and are not afraid of hard work.

You can get your NALP designation on line. It would be a good investment to make in yourself!

Finally, I will tell you that there is nothing wrong with researching companies and going to their properties to see what the communities are like. There is also nothing wrong at all with visiting the local Apartment Association office/website and talking to those people. They know a huge amount about salaries, salary expectation for the area, and if there may be any openings. Check that out, too!

I remember when I was in retail sales; I was paid a base plus commission and bonuses for a while until the company realized that I (and several others) were making WAY more money than district managers were (A number or salespeople were driving nice cars; with district managers driving 'autoboxes'), yet had a lot less responsibility..... so they made a change that took nearly 1/3 of my paycheck by removing the commissions and bonuses.....

Needless to say; there were a lot of people leaving the company after the change. What a way to reward hard work and loyalty.

Thanks for all of the advice. I received (and accepted) a job offer in which the base salary is only 2k less than my salary now. The commission is between $120-$228 per lease and benefits( 90/10 ), kick in after 90 days. I feel fortunate to have such a great offer with zero experience in leasing. :woohoo:

Congratulations and welcome to our world of multifamily professionals!

Not talking to anyone here in particular, but my question is where do you people live and work that make ANYWHERE near what figures your throwing around. This has been my problem with the housing profession ever since I got into it ten years ago. Aside from talking "high End" vs "Low End" (Subsidized vs Market Rate) well, around here there is no leasing money or management money available. At least not in on site management. And money for subsidized? No you would have to be a managing agent of about 10 properties to make anything over 50K. The OP is highly qualified. To take a BA qualification to housing management, or leasing even, would be worthless in this area. You guys must have one hell of a different pay scale in your regions.
My highest all time year in housing was an earning of around 75K. However, there is not room here to list all the things I was doing that year to make that much money. I assure you apartment management was not very much a part of that money. Think "rehabs" and think "grounds" and LOTS of spray painting to the tune of three to four units a week.
I guess in the large complexes, owned and run by the owners, not a PMC, then salaries like you cite may be possible. Here, on site pay is peanuts, and if you don't need the free unit to live in, well, it is NOT worth it at all. I am not complaining because I got my pound of flesh out of the housing business. I did really enjoy my ten plus years. Housing for me was a good job to play around on, but I would not want to make my living at it. It just does not pay that well. Now painting every unit that is vacant can put you on a good footing, if your fast, and good, and willing not to make all your money on one unit, but many. And in addition, doing other maintenance jobs the PMC needs, but is too cheap to hire a pro for.

Hi Herb,

I'm in the Richmond, Va and NOVA market. The cost of living is pretty darn high here so the pay is higher accordingly. I also work some out of the Hampton Roads, Va. Beach area, (where my boss is located). While my property is outside of RVA I am considered part of the Hampton Roads region so I'm privy to their pay, mainly because every time I need to hire someone my boss complains that we are paying too much in my area. I currently work for a PM Co., but I've also worked for a REIT and private owners. It's all about the same...
As a matter of fact I was joking with some of my PM colleagues and we were complaining that we'd consider switching careers but we can't find anything that pays as well, IT'S A TRAP LOL.

Jessica,

I hate to say it but unfortunately you will probably start at the lower end of the spectrum of pay. Looking at what you listed as experience and education it tells me you would be an asset but you still need to be trained and that you will need some time to become familiar with the do's and don't of leasing and property managment. Now, that doesn't mean that you can't or won't earn more money even though your base is $24k. I would hope that you were offered a commission for each lease you bring in and some companies offer commissions for renewals as well. I'll make some assumptions for example purposes only.
You are the only leasing agent for the site (100 units)
The property will turn over 40% each year
You receive a $50 commission for each unit leased

$50*40=$2,000 in commissions.

You'll have to put in your own numbers but I am sure you get the point on how much more you could get (not a ton) for the leasing.

the important thing to remember is that each employee is an expense of the site and the site needs to ultimately earn money. If you are able to bring value and perform you job responsibilities well, you'll move up quickly or find another job quickly that will earn more money.

All the best.

Hello Jessica,

I think if money is the driving train, then you may not be happy in housing! I say this because you have to love the job and dealing with people. If you believe in Maslow's Hiarchy of needs then you know that one of the basic physiological needs is shelter, and if it is not met along with the other basic needs then they will ignore the higher needs until the basic needs are met. This then means you are going to have a complaint driven industry and you have to have that need to want to help people. My advise is you may not get paid as much loving what you are doing, but you are a happier person and it reflects in other portions of your life. I have seen people go after the money and be very unhappy souls. You can rise in the industry and make good money because when you love what you do it shows!

There is a saying that if you truly enjoy what you do; you will never work a day in your life.

Going back to the OP's comment that indicated that she was coming from a social services background and a degree in psychology; she might try to find a position with a company that specializes in special needs housing. I was with a company that developed and managed affordable properties for individuals and families that were aimed at this particular demographic. The concept is 'permanent supportive housing' and is intended to help people become successful. The property I leased up had 3 main criteria to qualify for housing:

1) They had to have low or no income (I had an income limit of approx. $24000/year, but had no household with more than $18000); some of my applicants were on welfare/food stamps, some on Social Security/disability, some on VA income.
2) They had to have a verifiable disability (either a physical, mental, or an addiction); other nearby properties included HIV related issues as well. We did not need to no the specific nature of the disability, just that it existed and management of the disability was possible with the right support. Supportive services were provided by local service agencies that specialized in these kinds of needs.
3) They had to have problems with homelessness. Many of my applicants came out of shelters, informal tent cities/homeless camps, or off the streets.

@ Herb:

This is what I was able to find as far as compensation statistics for property managers in CA, I just wish I could find a good FREE salary calculator that would allow more input than just location (property size, conventional/affordable, property age are all factors that should be considered):




The table below shows the counties in California for Property, Real Estate, and Community Associaton Managers on October 1, 2012 (Jobs De-duplication Level 1).


Rank Area Name 2012 Estimated Mean Annual Wage

Property, Real Estate, and Community Association Managers
1 Los Angeles County, California $74,232
2 Orange County, California $74,232
3 San Diego County, California $74,232
4 Santa Clara County, California $74,232
5 Sacramento County, California $74,232
6 Riverside County, California $74,232
7 San Bernardino County, California $74,232
8 San Francisco County, California $74,232
9 Alameda County, California $74,232
10 Ventura County, California $74,232

Wage Data Source: LMI DEPT
Job Data Source: Online advertised jobs data

The take home lesson from this thread is the widely varying earnings and salaries in the housing business.
We have everything from high end expensive apartments and condos to low end 550 sq ft subsidized complexes.
Nationwide, the compensation for these management jobs will be all over the map. I can visualize a leasing agent in CA making upwards of 50K or more, and an on site manager in AL in a small family complex making around 12K plus a free apartment. So when we are discussing the earnings from MultiFamily we need to consider the who what when and where of the job.
I once attended a State Housing meeting, where wife and I met a lady who we assumed to be a "big wig" in the housing arena. This lady was dressed to the nine's, talked the talk, and you would have expected her to be a corporate guru or VP or at least a "Regional" management agent. Later that night at the dinner, she happened to sit by my wife at our table. After a few tongue loosening drinks, we learned that she was a file clerk for a two bit PMC that had only four complexes State Wide. She began to talk salaries, and to make a short story long, I could have made what she does by throwing newspapers.
On another note, I was at a construction site of a complex, with a friend who was going to be the manager, opening this new complex. I began to chat with an older fellow who was running a backhoe and digging in the water pipe. The backhoe operator offered me a cup of coffee from his thermos. He was in jeans and work shirt and boots. Comes around to find out this man was the President/CEO of a large development company that was in charge of building the complex! Seems the man hated the CEO part, and instead used the backhoe or shovel several days a week with his construction crews. You never know, do you?
The moral of two stories is here is a lady that looks like the queen of housing, and a guy who looks like a country western song title, and you just can't tell. It is always fun to study the human animal in it's habitat.

In my years, I have a met a lot of people who "appear" to be who they are not. This seems especially true in the housing business. To me, leasing on commission would be like Real Estate work, or worse, car selling. I just wish there were more standard schemes on employment so you could see what exactly things are all about.

I guess the housing business is what you make it to be for yourself. I have no experience in real estate sales, or high end leasing commissions, so I guess I was a little out of the loop in the conversation here.
Maybe we should all move to "Nuw Yawk" and get jobs leasing the High End Apartments on Wall Street!

Herb, you are so right and you say it just right, too. Love it! The one thing I believe is sometimes when you absolutely love what you do, if you didn't need to make a living in order to eat, you'd do it for free. Other times, you hate it so much you'd pick your next meal out of the garbage before you'd go back for another day. And yes, people's dress, manners, and the way they talk do not always tell their true story (although I will dress up in a corporate environment, plus, sometimes I do think you want to dress for the job you want to have "some day.") but I have always said, you can wear jeans, your team sweatshirt with a whistle around your neck and still be genuine, friendly, and knowledgeable and lease an apartment. On days when I was coaching, I've been known to show up looking like that on a Saturday or two.