In the face of an unprecedented mass exodus, the traditional Property Management model finds itself on shaky ground. Recent statistics reveal that over a quarter of Property Managers are expected to abandon the industry within the next five years, surpassing attrition rates across all other sectors in Australia. This alarming trend sheds light on the pressing issues arising from the COVID-19 lockdowns, which have not only impacted renters and rental providers but have also placed a significant burden on property managers, leading to higher stress levels and mental health challenges.
Traditional Property Management: A Portfolio-Based Model
At its core, traditional Property Management operates on a Portfolio-Based Model, where Property Managers are assigned a portfolio of properties to oversee. Their responsibilities span tenant screening, rent collection, property maintenance, lease agreements, and addressing tenant inquiries or issues. However, this one-size-fits-all approach often results in high workloads and limited flexibility, contributing to the high turnover of Property Managers.
Why Property Managers are Leaving
Several factors contribute to the mass exodus of Property Managers from the industry:
a) Overwhelming Stress and Conflicting Interests
Property Managers grapple with the delicate balance between landlords facing financial strain due to rate rises and tenants dealing with rising rents and housing scarcity. This balancing act takes a toll on their mental and emotional well-being, leading to burnout and a desire to explore alternative career paths.
b) Escalating Complexity and Legislative Burden
Recent legislative changes, including limitations on rental increases, add to the growing complexity of Property Managers’ roles. Navigating a myriad of legislative requirements demands time and resources, contributing to the challenges faced by Property Managers.
c) Disturbing Incidents and Toxic Environments
Verbal abuse and physical assaults targeting property managers have reached alarming levels, creating high-stress environments and a pervasive sense of insecurity. These incidents further motivate Property Managers to seek safer and less volatile career options.
The Domino Effect: Increased Workload and Decreased Job Satisfaction
The departure of Property Managers creates a self-reinforcing cycle. As professionals leave, the workload on remaining property managers increases exponentially, leading to decreased job satisfaction and higher stress levels. This heightened stress makes them more susceptible to burnout, potentially perpetuating the cycle.
Losing Experienced Hands: A Looming Crisis
Leah Calnan, Metro Property Management Director and President of the Real Estate Institute of Victoria, estimates that one in three property managers in the state have left the industry since the onset of the pandemic. Stress levels soared as financial uncertainty gripped both renters and rental providers, placing property managers in the midst of increasingly hostile situations. Facing constant battles with rude and unreasonable landlords and tenants, property managers found themselves in an untenable position.
Declining Interest: The Urgent Need for Positive Pathways
Another factor contributing to the exodus is the decline in interest in property management careers. Leah Calnan emphasises the urgency of creating positive pathways for young individuals entering the industry. As experienced professionals leave, it becomes even more crucial to attract and retain new talent to revive and sustain the sector.
Property Management’s Commitment to Well-being
Despite the absence of a quick solution, agencies remain dedicated to nurturing new talent within the industry and supporting its property managers in all aspects of well-being—mental, physical, and vocational. As the real estate industry grapples with unprecedented changes and challenges, the commitment to cultivating a positive and supportive environment for property managers becomes paramount.
Gough Recruitment’s Regional Insight
Adding a regional perspective to this crisis, our Regional Director in Western Australia has made a sobering observation. We have seen an alarmingly high volume of Property Managers that Gough Recruitment WA has placed or worked with over the last decade leave the industry. This revelation underscores the severity of the challenges faced by professionals in this field and emphasises the urgent need for innovative solutions to revitalize and sustain the property management sector.
The road ahead may be challenging, but through resilience, innovation, and a concerted effort to address the well-being of property managers, the industry can navigate this exodus and build a more sustainable future. It is crucial for the industry to embrace innovation, adapt to the changing landscape, and prioritize the well-being of Property Managers to ensure a healthier work environment for professionals and deliver better outcomes for landlords and tenants alike.
Are You Interested in a Property Management Career or Are You Looking for a New Property Manager?
Gough Recruitment is here to help. The clients we work with understand the evolving needs of the industry and we are working together to create environments where Property Mangers feel supported, are receiving ongoing training & development on legislation updates and changing landscapes, and their priority is above all, Property Manager’s well-being, resulting in retention.
Contact Gough Recruitment today to explore the possibilities. Let’s build a future where property management thrives through innovation, resilience, and a commitment to well-being.