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Learn how to become a real estate accountant
Do you have an interest in the real estate industry, or plan to invest in property in the future? Whether you are a real estate investor yourself or are looking to shift to a new career focus, real estate accounting may be a great career path.
Real estate accountants help companies record acquisitions and dispositions, monitor profit margins, create budgets, plan for capital expenditures and comply with applicable regulations and laws.
In this article
Should I become a real estate accountant?
There are certainly some promising reasons to consider entering the accounting field. Accountants are one of the few sectors that have a fulfilling and in-demand future. For one, the U.S. Bureau of Labor Statistics projects the industry to grow 4.6% through 2034, indicating job stability and a faster then average growth rate. Additionally, a recent study found that accountants and tax professionals ranked second in a poll that tracks job happiness, with 72.2 out of 100 points.
This sentiment and strong outlook are the same for real estate accountants. In fact, the real estate market is expected to grow by 3.34% by 2029 said Statista. As more real estate professionals enter the market, accountants who specialize in reporting and compliance will be indispensable.
If you enjoy analyzing real estate deals, have a background in real estate investing or accounting, and are looking for a career that is fulfilling and in demand, becoming a real estate accountant might be for you.
In this article, we’ll cover everything you need to know about becoming a real estate accountant, including what steps you need to take, important skills, and salary ranges.
How can I become a real estate accountant?
A career as a real estate accountant requires a combination of education and professional credentials. Here are three steps to take in order to start a career as a real estate accountant:
Step 1: Earn a bachelor’s degree in accounting
Real estate accountants need an educational background. After all, you will need to understand basic accounting principles, like how to maintain a general ledger and make adjusting journal entries. However, unlike tax accountants, real estate accountants don’t always need a four-year bachelor’s degree. Some real estate accountants can excel in their positions with an associate degree or bookkeeping certification.
If you have a specific company you want to work for, look into the type of degrees they want their candidates to hold. It’s important to note that many credits earned in a two-year program will transfer over to a bachelor’s degree, making it easy to go back and earn a higher degree. Regardless of which degree you plan on pursuing, there are countless institutions to choose from. Some offer a hybrid schedule while others are fully online, giving you options when working toward a degree.
Step 2: Continue higher education
Some real estate accountants will continue their education and credentialing with a master’s degree or a Certified Public Accountant (CPA) license. Although not always required, continuing your education can unlock more growth opportunities as a real estate accountant, such as being promoted to a management position quickly. Most master’s degree programs only require 30 credit hours, meaning you can complete the entire program in under a year. The CPA licensing process can take anywhere from 12 to 18 months.
Step 3: Obtain relevant experience and network
Since real estate accounting is industry-specific, you may want to obtain some work experience. If you are pursuing a degree, look for internships in the real estate industry. Even a part-time internship can open the door to a full-time opportunity. Furthermore, networking is a crucial component of being a real estate accountant. Sometimes, it’s more about who you know than what you know. Building your network will also help you find hidden opportunities as a real estate accountant.
What is the salary range for a real estate accountant?
A real estate accountant’s pay will largely depend upon where they choose to work, with independent accountants or contractors dictating their own hours and clientele, while those employed by large firms or agencies earning salaries set by their employers.
The BLS says the real estate industry is the fourth highest employer of accountants in the U.S., with companies such as Withum and First Service Residential listed as top employers.
The BLS estimates that the median pay for accountants is $81,680 per year or $39 per hour. However, your pay range can vary based on your experience level, educational background, and where you work.
10%$52,780
25%$64,660
50%$81,680Median
75%$106,450
90%$141,420
Median Hourly Wage$39
Job growth4.6%
Total Employment1,448,290
| State | Median Salary | Bottom 10% | Top 10% |
|---|---|---|---|
| Alabama | $71,070 | $48,600 | $123,410 |
| Alaska | $81,950 | $56,020 | $128,150 |
| Arizona | $78,620 | $52,130 | $125,990 |
| Arkansas | $64,180 | $41,670 | $118,730 |
| California | $96,360 | $60,920 | $162,150 |
| Colorado | $90,030 | $59,540 | $155,590 |
| Connecticut | $89,630 | $61,390 | $135,090 |
| Delaware | $84,560 | $56,500 | $133,550 |
| District of Columbia | $103,030 | $65,540 | $180,890 |
| Florida | $78,470 | $49,830 | $132,070 |
| Georgia | $80,100 | $48,140 | $140,640 |
| Hawaii | $67,820 | $49,050 | $108,520 |
| Idaho | $64,840 | $43,260 | $109,270 |
| Illinois | $79,300 | $51,690 | $132,080 |
| Indiana | $77,410 | $49,810 | $125,160 |
| Iowa | $74,290 | $48,300 | $121,940 |
| Kansas | $76,400 | $49,770 | $122,650 |
| Kentucky | $72,220 | $47,880 | $114,800 |
| Louisiana | $69,540 | $46,950 | $117,190 |
| Maine | $77,680 | $52,920 | $124,990 |
| Maryland | $84,890 | $59,040 | $150,560 |
| Massachusetts | $96,580 | $64,370 | $152,960 |
| Michigan | $77,720 | $50,240 | $130,320 |
| Minnesota | $81,100 | $54,840 | $135,370 |
| Mississippi | $64,170 | $43,090 | $115,350 |
| Missouri | $73,210 | $45,760 | $128,240 |
| Montana | $74,400 | $48,730 | $121,140 |
| Nebraska | $69,980 | $47,370 | $106,770 |
| Nevada | $78,220 | $51,430 | $119,110 |
| New Hampshire | $82,830 | $58,300 | $128,400 |
| New Jersey | $101,340 | $65,670 | $166,230 |
| New Mexico | $77,420 | $51,590 | $119,020 |
| New York | $101,780 | $62,430 | $178,500 |
| North Carolina | $80,490 | $50,940 | $137,260 |
| North Dakota | $72,180 | $49,470 | $103,400 |
| Ohio | $77,640 | $49,480 | $129,640 |
| Oklahoma | $76,820 | $46,670 | $129,660 |
| Oregon | $81,130 | $58,950 | $128,710 |
| Pennsylvania | $77,330 | $48,850 | $128,300 |
| Rhode Island | $90,040 | $58,970 | $145,290 |
| South Carolina | $73,180 | $48,220 | $131,550 |
| South Dakota | $77,310 | $59,190 | $110,630 |
| Tennessee | $75,500 | $50,400 | $125,280 |
| Texas | $80,000 | $51,810 | $132,550 |
| Utah | $75,100 | $43,780 | $129,890 |
| Vermont | $76,990 | $56,460 | $121,360 |
| Virginia | $84,190 | $57,150 | $145,750 |
| Washington | $96,180 | $64,440 | $143,210 |
| West Virginia | $74,520 | $47,400 | $113,730 |
| Wisconsin | $78,150 | $56,360 | $126,180 |
| Wyoming | $77,400 | $51,180 | $123,330 |
Source: U.S. Bureau of Labor Statistics (BLS) 2024 median salary; projected job growth . Actual salaries may vary depending on location, level of education, years of experience, work environment, and other factors. Salaries may differ even more for those who are self-employed or work part time.
How do real estate accountants compare to other finance careers?
Real estate accountants often get paid a premium for their exclusive knowledge of the industry. As a result, their median annual salary is often higher. Here’s how the career compares to other related career fields:
Factors that impact salary
A real estate accountant’s pay depends on a variety of factors. For one, your position will dictate your pay. For example, a real estate bookkeeper will get paid less than an accountant in a management position. As you build up your experience and move up the ranks, your salary will increase.
Cities with the highest paying positions for real estate accountants often mimic those with a higher cost of living. Here’s what the BLS cited as the 10 top paying metro areas for real estate accountants:
What being a real estate accountant is all about
Real estate accountants handle everything from recording acquisitions to tracking rent rolls. Here are some of the other main tasks:
- Recording acquisitions and disposals
- Monitoring capital expenditures
- Creating budgets and forecasts
- Calculating and recording depreciation
- Preparing financial reports and statements
- Maintaining compliance with regulators
Every real estate accountant will have a different work schedule. Nevertheless, here’s what a typical day might entail:
- Respond to emails
- Update depreciation schedules
- Review accounts payable and receivable ledgers
- Clear bank transactions
- Develop internal reports
- Consult with management
Real estate accountants generally work the traditional 9 to 5 hour schedule. Additionally, many real estate accountants can work remotely or on a hybrid schedule.
Needed skills and competencies
Real estate accountants not only need a baseline understanding of the real estate industry but also soft skills to effectively communicate with other team members. Technical skills like understanding general accounting principles and best practices are crucial to excel in a career as a real estate accountant.
Similarly, soft skills, like communication and time management, help real estate accountants complete their daily duties. Real estate accountants leverage technology to complete a majority of their tasks. For example, you might use online accounting software to manage bank transactions and fixed asset software to track capital expenditures. Being able to navigate these programs is important.
Where you’ll work
Every real estate accountant position will look different. Nevertheless, here’s some information about job titles and work environments.
Job titles
- Bookkeeper: A bookkeeper handles basic transaction management.
- Staff accountant: One step above a bookkeeper is a staff accountant.
- Senior accountant: After one or two years of experience, you become a senior accountant.
- Manager: Once another few years have passed, you may become a manager.
- Senior manager: The next stop after manager is a senior manager.
- Partner: Partner is generally the highest job title for a real estate accountant.
Possible work environments
Unlike a general accountant who has options between public and private companies, real estate accountants are commonly found in the private sector. This could include working for an investor with a growing portfolio or a national company with roots in numerous states.
How to make yourself stand out as a candidate for real estate accountant positions
When starting your career as a real estate accountant, it’s important to stand out from other candidates. This may help you negotiate the best terms and secure your dream job. Here are some top tips to stand out in the hiring process:
- Have a growing professional network
- Be clear about your expectations and goals
- Evaluate positions with logic rather than emotions
- Highlight your traits, including soft skills
- Demonstrate your experience in the real estate industry
- Commit to lifelong learning
- Negotiate your terms
Professional organizations to consider
Professional organizations can help you build your business network and keep you informed about industry changes. Here are some top real estate professional organizations to consider joining:
- American Institute of Certified Public Accountants
- National Society of Accountants
- National Association of Tax Professionals
- NAREC Real Estate Finance Professionals
Additionally, look for real estate organizations in your local area, like a local meetup. This can be a great way to build your local network and find new opportunities.
Frequently asked questions
A CPA license isn’t required to be a real estate accountant; however, it can be beneficial to earn promotions and a higher salary.
Real estate bookkeepers handle general ledger management, while an accountant handles more complex items, such as maintaining depreciation schedules and putting together forecasts.
Generally Accepted Accounting Principles (GAAP) is the most widely used accounting method in the real estate industry.
Written and reported by:
Rachel Horozewski
CPA, Public Accounting