Real Estate Investment Trusts (REITs) offer some of the best-paying jobs for those looking for lucrative careers in real estate.
Salaries include bonuses, commissions, and excellent benefits.
They are an attractive option for many real estate professionals and as a result, with the right skills and background, there’s a successful career waiting for you in the sector.
However, you should know a few things before you pursue a job in this field.
This article explores the best-paying positions in REITs and what you can expect from a career in the sector.
What is a Real Estate Investment Trust?
REITs are an investment vehicle that allows investors to pool their money together to purchase and manage real estate properties.
Properties may include a portfolio of real estate assets, such as office buildings, apartments, shopping malls, or warehouses.
A person can trade REITs on private or major stock exchanges, which can be an excellent way to diversify a portfolio.
Publicly traded REITs are large and well-established, while private REITs are often smaller and more agile.
REITs’ income comes from the rent paid by tenants, the interest paid on mortgage loans, and the sale of properties. Shareholders earn a portion of the income as dividends and may reinvest it in their properties.
Besides, REITs offer investors a way to diversify their portfolios and participate in the ownership of the income-producing real estate. They also provide the potential for high dividends and capital appreciation.
How do REITs Work?
By law, REITs must distribute at least 90% of their taxable income to shareholders as dividends. As a result, they have high dividend yields. So, they are an attractive investment for income-seeking investors.
Categories of REITs include equity and mortgage REITs. Equity REITs maintain and run income-generating real estate, like shopping malls, apartments, and office buildings.
Alternatively, mortgage REITs invest in mortgage loans and other real estate-related assets.
Factors Influencing the Best Paying Jobs in Real Estate Investment Trusts
There are many factors influencing pay in the in REIT sector.
One of the most important factors is the location. REITs Jobs in large cities pay more than those in smaller towns. The primary reason is competition for jobs in large cities usually have more money to pay their employees.
Another crucial factor is the size of the REIT. Large REITs often have more funds to pay workers than small REITs.
Also, the type of REIT can affect the pay. For instance, REITs that focus on office buildings or shopping centers pay more than those that concentrate on apartments or warehouses.
Below are some of the best-paying jobs in Real Estate Investment Trusts
1) Chief Financial Officers
Chief financial officers play a vital role in the financial management of REITs.
Their responsibilities include developing and implementing financial plans and investment strategies, including overseeing the financial operations of the REITs.
The process involves preparing financial reports, budgeting, and forecasting. They also liaise with the board of directors on financial matters.
The role of the chief financial officer in REITs is not only demanding but also one of the best-paid jobs in the industry.
The average base salary for the chief financial officers is $115,000 annually in America. However, if pay includes bonuses, stock options, and other forms of compensation, it may reach $400,000 annually.
2) Real Estate Attorneys
A real estate attorney is a lawyer who specializes in the legalities surrounding REITs.
The attorney may represent clients in court on matters related to real estate disputes. Also, they typically handle issues like purchase and sale agreements, leases, landlord-tenant disputes, and title disputes.
Their legal expertise ensures REITS runs smoothly and complies with all applicable laws.
Attorneys’ extensive knowledge of the law surrounding real estate transactions ensures that the trust can buy, sell, and own property without experiencing legal issues.
Additionally, real estate attorneys prepare and file paperwork associated with real estate transactions, claim liability, and defend charges or legal rights and duties.
Because of their vital role in REITs, real estate attorneys are among the best-paid employees in these trusts.
Their salaries are typically much higher than those of other employees, such as property managers and leasing agents.
The average salary for a real estate attorney is $175,000 annually. Salaries can vary depending on the firm’s experience, location, and size.
3) Asset Manager
Asset managers play a significant role in managing trusts’ assets and generating the desired return on investment. As a result, they are among the best-paid professionals in the REIT industry.
Their responsibilities include overseeing acquisition, disposition, financing, and property management.
They work closely with other professionals, such as accountants, lawyers, and appraisers, for proper asset valuation to generate the desired return.
The best asset managers deeply understand the real estate market and the financial aspects of REITs. In addition, they provide sound advice to the trust’s board of directors and make decisions that maximize the trust’s return on investment.
Additional functions include managing loans portfolio and assisting with supervising and processing complex loans.
Asset managers’ salaries vary depending on the company’s size and field experience.
The average salary for a REITs asset manager is $82,000 but can range from $64,000 to $126,000 per year.
4) Relations Director
The relations director maintains relationships between the REIT and its shareholders. Roles include communicating with shareholders, handling inquiries, providing company performance updates, and addressing any REIT management concerns.
Also, the relations director works with other company management team members to ensure that REITs know the company’s strategic direction and objectives.
They are among the better paying jobs with a typical salary between $100,000 to $200,000 per year.
5) Property Manager
Property managers handle the daily operations and management of rental properties.
Additional responsibilities include marketing the property, screening and selecting tenants, collecting rent, and managing repairs and maintenance issues.
Also, they enforce the terms of a lease agreement. They also ensure rental properties maintain high standards and are highly profitable.
Property management is demanding and requires extensive knowledge and experience in various areas.
To succeed, a person must be well-organized, detail-oriented, and have excellent communication and customer service skills. They must also handle difficult situations and tenant issues efficiently.
Since property management is a demanding job, it is one of the most rewarding and well-paying jobs in the real estate industry.
Also, the job offers various benefits and perks, such as free or discounted rent, paid vacation days, and health insurance. In addition, property managers often earn a commission on the rental properties they manage.
The average salary varies depending on the property’s size and location, including the property manager’s experience. However, a typical average salary is $80,000 per year.
6) Real Estate Brokers
A real estate broker is an individual who acts as an intermediary between sellers and real estate buyers.
The broker typically works with a real estate agent to find properties meeting the buyer’s criteria. They also work with investors to manage portfolios and negotiate deals.
Their association with lenders ensures they close deals to finance the property purchase.
Besides, real estate brokers are among the best-paid professionals in the real estate industry.
They typically earn a commission on the sale of the property, which can be a percentage of the total sale price. The exact commission varies depending on the type of property and the location.
The average salary for a real estate broker is $88,000. The pay may range from $55,000 to $110,000 per year.
7) Property Developers
A property developer is a professional responsible for developing a real estate project. Generally, they work with a team of other professionals, such as architects and engineers, to oversee new constructions.
The role of a property developer is to identify potential real estate projects, secure financing for the project, and oversee the construction and marketing of real estate development.
Property developers must deeply understand the real estate market and the construction process to succeed.
They must also operate using a state license on where they plan to develop real estate projects.
Property developers earn an average salary of $85,000. The salaries can range from $80,000 to $90,000.
8) Investment Analysts
An investment analyst evaluates potential investments and provides recommendations to the investment committee. Also, they monitor, research, and evaluate potential or existing assets, including summarizing performance reports.
They are among the best-paid professionals in the industry because of their high level of decision-making and specialized knowledge.
They typically have a bachelor’s degree in business, economics, or a related field, with many possessing a master’s degree or certification in real estate or financial analysis.
The average salary is $70,000 and ranges between $54,000 to $73,000.
Final Thoughts on the Best-Paying Jobs in REITs
Regarding the best-paying jobs in REITs, it is crucial to understand the vital roles in various positions that evaluate the best salaries.
After all, positions with well-paying salaries have demanding responsibilities.
Besides, there are many REIT jobs, each with unique benefits. Although most jobs pay similar salaries in most states, you can maximize your earnings potential by choosing reputable and financially stable REITs.
Also, the best-paying jobs in REITs provide many opportunities for advancement apart from excellent pay.
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This post was produced and syndicated by Career Step Up.