Kaylee Strozyk is a freelance real estate contributor for The Close and Fit Small Business. Her real estate experience includes investing and flipping properties, and she also works closely with real estate agents and brokerages to grow their businesses through strategic online marketing and education. See full bio
Reviewed by Table of ContentsProject management is often associated with technology and software, but it’s an important concept in the real estate industry. From residential builds, renovations, and transactions to commercial developments, real estate project management is key to success. To help you successfully manage projects, I’ll discuss tools and strategies for success and when it’s time to hire a dedicated project manager (PM).
Project management is an essential element of successful businesses in practically every industry, but there are specific skills and tasks for project management in real estate. Real estate project management refers to coordinating, planning, and overseeing a project from start to finish. Of course, real estate projects can vary drastically for sales agents, brokers, construction projects, or investors.
For example, a few types of real estate projects include the following:
Think of all the ways that a typical real estate deal can fall through, then multiply that number by 10. The potential is endless! Commercial real estate projects inevitably have construction setbacks, communication snafus, permitting issues, and so much more—especially without the guidance of a PM.
There were approximately 919,000 construction sites across the US in the first quarter of 2023. With such a high number of ongoing projects, the need for property project management is higher than ever—just think about the impact that such a large number of real estate developments could have on the economy.
Not all brokerages or companies have a dedicated real estate PM, but it can be an incredibly valuable role. A PM wears many hats to oversee each project’s progress. A few of their primary duties are as follows:
A real estate PM is ideal for large teams and companies but isn’t always possible for growing agents and brokers. If hiring a PM role isn’t in the cards yet, plenty of options exist to help with your project management tasks. Here are the most essential tips and tools to manage projects for individuals and teams.
Since project management in real estate varies so much and encompasses various tasks and roles, a successful PM will immediately set clear expectations. Expectations include communicating with all parties and creating solid legal contracts. Project managers don’t need to be legal professionals, but they should do plenty of due diligence to prevent major issues before, during, and after the project.
Communication is one of the primary roles of a PM. Since many different parties are often involved in each project, the manager should create one or two places where parties can communicate with them or with all involved parties. This involvement prevents missed messages, wasted time, and miscommunications.
Real estate project management connects to every part of a project, from finances to construction to sales. If team members aren’t carrying their load, the project management tasks can become overwhelming for even the best manager. It’s important to have strong experts in each area of the project so the manager can focus on keeping the wheels running smoothly—not on trying to compensate for lacking areas.
Since residential and commercial real estate project management includes such a wide variety of tasks, choosing the right tools will be instrumental. From using a customer relationship manager (CRM) for follow-ups and communication to using predictive analytics tools to market to new leads, the software is vital for dedicated PMs or individuals who need support to manage their tasks.
A few of the best real estate software for project management include the following:
Getting a certification is the best way to become a real estate PM. The two most well-known places to learn more or to get certified are the Project Management Institute (PMI) and the International Association of Project Managers (IAPM). There are a few different types of certifications for project management in real estate, and the main ones are as follows:
Managing a real estate development project requires a high level of organization, communication, data gathering, and knowledge of the real estate and construction industries. Tools and software options are available for professionals involved in real estate projects to help manage tasks and data. However, having an employee or contractor focused on keeping the project on schedule and within the budget is ideal.
The roles of a developer and a PM are intertwined yet ultimately very different. A real estate developer is the driving force behind a project; they are the ones who started with the idea or plan and are responsible for financing. The developer is the one who has the most at stake, so they are typically the most invested in the project’s success. On the other hand, the PM is focused on the project’s execution. The PM is typically paid the same amount whether the project is ultimately profitable.
When most people hear about real estate project management, they just raise their eyebrows and think, “What is that?” Even though it’s not a well-known or well-understood role, PMs are essential for keeping real estate projects on time and within budget. Using the project management tips suggested above or working with a dedicated PM, you can complete projects (almost) seamlessly.
Kaylee StrozykKaylee Strozyk is a freelance real estate contributor for The Close and Fit Small Business. Her real estate experience includes investing and flipping properties, and she also works closely with real estate agents and brokerages to grow their businesses through strategic online marketing and education.
