Real estate investment trusts (REITs) are a particular kind of business that manages estate to generate income. The number of jobs available in the industry varies depending on the size and scope of the company. For example, a large REIT might have thousands of employees, while a smaller one might only have a few hundred. In this article, we will discuss what REITs are and what career opportunities can await you there.
What are real estate investment trusts?
A business that owns, manages, or finances income-producing real estate is known as a real estate investment trust. By law, REITs must distribute at least 90% of their taxable income to shareholders in the form of dividends. As a result, they have high dividend yields and tend to be less volatile than the overall stock market. REITs can be privately or publicly traded on major exchanges.
REITs can be broadly categorized into two groups: equity and mortgage. The first own and operate income-producing real estate, such as shopping centers, office buildings, apartments, and hotels. Mortgage REITs finance estate by originating and servicing loans.
The U.S. Securities and Exchange Commission (SEC) defines three types of REITs:
- Publicly traded
These companies are registered with the SEC and trade like stocks on major exchanges. They must comply with strict SEC regulations designed to protect investors.
These companies are not registered with the SEC and do not trade on major exchanges. They may be offered through private placements only to accredited investors.
These companies combine aspects of both publicly traded and non-traded REITs.
How many real investment trusts are there?
There are several types of real estate investment trusts, but the two main categories are public and private. The first are traded on major exchanges, while the privates are not. As of December 31, 2017, there were 227 public REITs and 1,091 private ones in the United States.
What is the future for those who work for REITs?
The job outlook is favorable for those employed by real estate investment trusts. The branch is expected to grow at a rate of 5 percent between 2016 and 2026, which is faster than the average growth rate for all industries. It will result in the creation of about 33,700 new jobs.
How many job opportunities exist in REITs?
Real estate investment trusts provide a diverse range of employment opportunities. Some of the most common positions include analysts, as well as asset, portfolio, and property managers. Other include marketing and sales, accounting, finance, and administration.
Asset managers are responsible for the day-to-day management of holdings within a real estate investment trust. This includes reviewing financial statements, making investment decisions, and overseeing property maintenance.
Portfolio managers are answerable for managing the overall portfolio of investments. This includes creating and implementing strategies, monitoring performance, and reporting to the board of directors.
Analysts are responsible for researching potential investments and providing recommendations to assets and portfolio managers. This position may also involve some financial analysis to evaluate the viability of potential investments.
A property manager deals with the day-to-day operations of a property. This may include tasks such as rent collection, maintenance, and lease administration.
What are the best-paying jobs in REITs?
There are many different types of jobs available in real estate investment trusts, but some of the best-paying positions are in asset management and portfolio management.
Other well-paid jobs include development managers, who oversee new construction projects, and leasing managers, who negotiate with tenants.
REITs also offer many entry-level positions that can lead to high-paying jobs down the road. Many are about administration or customer service, but there are also opportunities in marketing, sales, and accounting. Salaries for entry-level positions vary depending on the size of the REIT, but most offer competitive wages and benefits.
Of course, some positions are paid significantly more than others. Here are a few of the highest-paying jobs in the industry:
- Chief executive officer: The CEO is the highest-ranking position in any company. He is responsible for making major decisions that affect the direction of the business.
- Chief financial officer: The company’s financial health is the CFO’s responsibility. He creates and oversees the budget, makes sure that bills are paid on time, and tracks the company’s financial performance.
- Senior vice president: The representative of this profession is responsible for a specific area of the business, for instance, sales, marketing, or operations.
- Director: He typically oversees a team of lower-level employees and ensures that it meets the business’s goals and objectives.
- Associate: It is an entry-level position in real estate investment trusts. This employee provides support to others and learns about the industry while working on various projects.
Note! The listed positions typically require significant experience in the real estate industry, and salaries can vary widely depending on the size and scope of the REIT.
What are the requirements to work for REIT?
There are many different types of real estate investment trusts, each with its own set of requirements. However, most require employees to have at least a bachelor’s degree in real estate, finance, or a related field. Additionally, many firms prefer to hire people with experience working in the estate industry. Some specific skills that may be required for certain positions include financial analysis, asset management, and market research.
How much can I earn?
There is no one answer to this question, as it depends on the specific organization and your position within it. Generally speaking, REIT professionals can earn a significant amount of money. For example, according to Glassdoor, the average pay for analysts is $67,527 annually. Salaries can start from $40,000 per year, depending on experience and position. Many REITs offer bonuses and other incentives that can further increase financial potential.
So if you’re looking to earn a competitive salary and have a stable career in the real estate industry, working for a REIT may be the right option for you.
How many jobs are created each year in REITs?
Many jobs appear in real estate investment trusts yearly, but the exact number depends on their size and type. The largest one can have hundreds of employees, while the small one may only have a handful. Generally, there are four main types of positions within REIT: asset management, operations & maintenance, finance & accounting, and administration.