As you may know, part of our service at Real Strategix is to provide temporary recruitment to Real Estate agencies and onsite managers.  We perform all our checks as you would a tenant, or employing someone yourself. We have our own 100-point system and one of them is social media.  When I say social media – I mean everything on the big, bad web.

We put your name into Google and you would be surprised what comes up.  We have had people apply for jobs that have no mention of working at a “particular” real estate on their resume, but this agency still has them listed in the back end of their” about us” page of the website.  Personally, I worked for a company many years ago, and if you type my name in I am not listed in “about us” or “our team” but I come up in staff photos from Christmas parties, in blogs, and also in the backend of the “about us”.  I am more than happy for that, and by the way it is purely an example.  Do it yourself and see what you find.  Set up a Google alert too – that will take longer to explain, but you can see what people are saying about you, or to you.

Facebook – the WORST culprit for you – the best for any employer!  Make your page private.  We have had many candidates that we search, who have their name, and a strange name in brackets under it.  For example: Mary Rose (perfect princess).   I have, on a few occasions, then entered the words (perfect princess) into the search engine, and low and behold Mary Rose has a talent for other things that men pay money to see (that was an example, by the way, just to clarify).  People are not silly, and these days you cannot escape social media. Even if you try to, people will TAG you in the drunken photos. Facebook has the ability that requires you to “accept” being tagged in photos.  My one rule – no DRUNK posting!  In fact, don’t touch your phone while drinking!

You might want all of your Instagram followers to see you as a model, and holding up a bottle of protein powder.  This might get you sponsors, however WE also see this!  We can, therefore, see how drunk you got last Saturday night, and what people are commenting back to you.  Many employers have absolutely no problem with weekend shenanigans – we have all done it – all been there (I was just fortunate that social media didn’t exist when I was 18).  Just remember, that even though it is in “your time” it does, unfortunately, open you up to be judged before you have walked into the interview.

If you are a BDM, Business professional, agent, trainer – why not have TWO Facebook profiles.  I do – one to follow all my sporting teams, my sons football, my daughter’s gymnastics, and become a member of my own gyms personal group; but everything else in my life relates to my working life.  I actually now find I use this profile more.  Just remember which one you are posting on!

Lauren Kropp

Director – Real Strategix


Three years ago, you were employed by your agency to run a portfolio of 150 properties and had the title “Property Manager” on your business card.  Many people were looking to change this title to “asset manager”, “people manager”, “counselor” but we still referred to it as Property Manager.

As times have changed, many agencies have resorted to outsourcing their administration tasks.

These tasks include the following:

  • Lease renewals
  • Arrears
  • Application processing
  • Reference checks
  • Scheduling of inspections and sending appropriate forms
  • Entering and arranging maintenance
  • Compliance (smoke alarms, pool management)
  • Arranging open homes including uploading to websites.
  • Sending lease documents and welcome packs
  • Email liaising
  • Client marketing
  • Social media posts
  • Trust accounting

What is left for the “Property Manager” to do?  The only true gap that I see is routine inspections, leasing or viewings and tenant and landlord signups for those who prefer face to face.

If an office was to hire a routine inspection officer or outsource one and a Business Development Manager who could in fact, perform the signups and viewings, this would make the role of the Property Manager obsolete.

I hear a lot of Property Managers complain that they do not get paid enough for the highly stressful job and I concur.

However, if an agency appoints the outsource team and a BDM what will happen to the current annual salary of a Property Manager?

If this were to happen, a Principal has every right to greatly reduce the role and salary of a Property Manager or make them redundant.

Outsourcing is like religion – everyone has an opinion. As the Managing Director of an outsourcing business specialising in trust accounting and temporary recruitment, I have spent a lot of time especially of late writing a “pros and cons” list.

A Principal will LOVE outsourcing if they do not have a strong relationship with their team and sees them purely as an expense.  That may sound harsh but not all employers respect the employee and value the face- to- face concept of their input in the business.

By contracting the services of an offshore Virtual Assistant, they only pay $7 per hour to perform the above tasks compared to $25 per hour for a regular employee.

In some instances, they do not have to pay GST to the contracted worker as the company is owned and operated overseas.  They also do not have to pay super or work cover to the VA.

However, they must make sure their Professional Indemnity Insurance covers the VA. Based on a 38-hour work week, this is a cost savings of $684 in wages plus $65 in super.  This is almost a savings of $39,000 annually!

In a portfolio of 150 properties the Property Manager will generally have an assistant or a routine inspection officer to assist them. Therefore in the above instance, the Property Manager would be made redundant, the routine inspection officer would keep their job and the business would be better off by $39k but what happens to customer service?

The Principal that likes good old fashion customer service, face- to- face conversations and walk- ins will NOT like outsourcing.  But they can see the benefit of paying an additional $39K in wages because they have built a brand and a reputation. Therefore the business should be making up for that $39K and more with new management and growth.

One final negative in offshore outsourcing is the language barrier. The time spent initially outlining and training the VA in procedures and tasks is consuming.

But I can tell you from firsthand experience that if you are fortunate to have a VA that fits your business mould, the initial training is worth it.  We use a VA for our administration tasks but she is restricted from calling our clients due to the language barrier.

Property Managers however will LOVE outsourcing if it makes their life easier and they keep their job.  Therefore, the type of outsourcing suitable for this is a routine inspection officer and/or a trust account specialist.

If the idea of a VA interests you but you are worried about the language barrier, it is possible to outsource to Australian companies.  However, you will pay more than $7 per hour due to Australian minimum clerical award but this will assist the smaller offices who may only want a part time employee to work from home. The training will also be much easier.

I have the best of both worlds. I have a VA in the Philippines for our admin and at Real Strategix, we outsource Australian staff to perform inspections, provide in office temporary recruitment and trust account outsourcing.

Therefore my view as presented above is completely impartial.

Lauren Kropp

Managing Director – Real Strategix

 


We have all seen the show “Undercover Boss”.  There have been two instances over the past year that I have placed myself in the Temp world as an “undercover temp”.

What is it really like to be a temp in a property management department?

Easy you think …. you just come in, do your job, leave at the end of the contract and get paid well.

You are greatly mistaken.

When I first put the feelers out about entering Real Strategix into the recruitment world although I have personally over 15 years’ experience in all aspects of Property Management, trust accounting and consulting, I thought; there is no way I can make my new business venture work unless I “Live it myself.”

It was hard for me to take my consultant hat off and put my “temp” hat on.  What that means is “just do the job Lauren the best way you know how but do not tell them there is a better way as a consultant would”.

The first particular office did not know my background and had just heard through the grapevine that I might be interested in temp work– perfect timing.

My job was doing the lease renewals for three large portfolios which was a full time 4-week position.  During that time, I was seated in an office off to the side where no one really checked on me. I was basically forgotten about.

It was by no means welcoming.

I would hear from reception:

“Who is Lauren?”

“Does anyone know a Lauren?”

To which the office would fill with yells; yes “yells”,

“Nope. Sorry!”

Receptionist would reply,

“Sorry Mr Smith, We don’t have a Lauren that works here.”

It was about now I had to go and introduce myself to Reception.

  • Who hired me? Who was paying me? Where was my induction?  I didn’t even know where the toilets were, the emergency exits or who I was reporting to.
  • Did I have a password? Was I a registered user of the trust accounting software so my “temp” role and notes could be tracked?
  • Did I have a timesheet or could I just leave at the end of the day?
  • Who were the people whose names were on the portfolio that I was doing lease renewals for?
  • Is there a system in place which they want me to follow? Or do I just send the lease with a notice to leave? Do I always do a CMA? Oh… do they use RP Data for this?
  • Who is this horrible woman eyeballing me from across the room? Oh… that is the Property Manager whom I have had to tell the Principal has not actioned lease renewals for the past 4 months and has 130 properties on periodic leases.

This particular role was not stressful just the abuse from the owners wondering why their tenant had not been on a lease for 12 months.

Luckily in this instance I was able to secretly put my consulting hat on and take a very unhappy owner and within 4 days his new lease was returned with a substantial rent increase and he became my best friend.

During my time in this office two people out of 30 introduced themselves to me. After 3 weeks, I was still hidden away and by this stage everyone knew who I was as I had introduced myself and my role.

This is the hardest job of a temp. They are brought into an unfamiliar office for sometimes as short as a week or two as the Property Manager has just walked out. And if that particular Property Manager did not leave notes – all they have to go on is Email searches which are sometimes like reading Nancy Drew novels.

We all know there are good PM’s. I loathe the term “bad” PM’s. Instead, I refer to those as “PMs’ who struggled with the workload”.  But you must realise how difficult it is to have a temp come into your office and pick up the pieces.  I call them Temp Private Investigators.

Don’t get me wrong we have gone to many offices that are what I call “WGT “(We Got This). These are the ones that have the computer passwords set up, the introductions sorted, a list of things to do and the friendly “Thank you Mrs. Temp for coming in and helping us out” attitude.

Please be nice to temps. I know you must show them around and they will be asking you questions about procedures and systems but they are there to help make your life that little bit easier.

And trying to get you to stop at just “one glass” of wine instead of a “bottle” a night.

Undercover temp, over and out……

 

Lauren Kropp

Director Real Strategix


Real Strategix have been providing temps for the Property Management industry for almost 3 years.  The last 6 months our revenue has increased dramatically – which is great for us but not great for the industry.

I have spoken to many contacts from employees seeking work, industry trainers, current employees and Principals to try and get to the bottom of the Great Property Management Black Hole of 2016 (that is what I am calling it anyway).

Upon my latest SEEK search for a Property Management position in Brisbane, 166 jobs came up.  The average salary for the last 10 jobs posted was $52,800.

What does this tell us?

  1. There are more Real Estates opening/expanding that the industry cannot staff.
  2. The salary package is not attractive enough
  3. Property Managers are unexpectedly leaving the industry.
  4. There is too much competition and Property Managers can jump from one job to the next provided there are more job openings.

I will address each of the options above individually and let you make the final judgment.

  1. There does seem to be a new Real Estate agency opening on every corner or new shopping village, this I agree. There is also an industry gain of Property Management agencies opening. These agencies do not generate sales.

Many of these agencies operate from home. They hire virtual assistants and generally have lower overhead costs. Thus, increased cost savings gives them the means to hire a part-time Property Manager. It should be noted that many of these Principals are Property Managers themselves.

They SHOULD not but because of lower overhead, many can reduce their fees and cover the additional wage.  These types of roles are very attractive as they are often “work from home” or “between school hours” which entices many Mums.

2. Salary package – Some of us look for the one thing in a salary package that means more to their situation than just $$$$$. It could be:

  • Hours of work
  • Flexibility
  • More quality time

You may think it is unrealistic but many people including myself, would take less money to have a good employer allow me to go to my son’s Easter concert at 2pm and divert the mobile phone any day!

However, this comes back to having good support staff.  As we know just because you turn your phone off at 5pm does not mean your day tomorrow will be any easier.  This brings me to my next point: “Department Support” which ultimately involves the Principal and Operations team.

Salary package does not just mean a flat wage. Principals need to be more creative in enticing a Property Manager they do not want to lose. A few suggestions are as follows:

  • Company car which is open for personal use
  • Incentives regardless of KPI’s or new managements
  • 1% to 2% revenue incentive for top performing Property Managers

I can assure you a great Property Manager will stay if he or she is invested in the company.

3. You will not keep good Property Management staff if you do not support and provide them with the training and systems they need to function in a stable and happy environment. Plain and simple.  The key lies in getting the Principal to understand this.

Unfortunately opening their eyes to this fact is a large reason that Property Mangers walk out of jobs.  The constant requests for assistance and systems then being repetitively turned down will always make a good team member walk. Hence, the many job opportunities.

4. The amount of job openings suggests that a Property Manager can leave your company after only 3 weeks, find a new job and simply indicate a “travel gap” in their resume.

From my observation, many Principals still hire Property Managers who have had 5 jobs in the last 12 months. This is because they prefer hiring permanent employees over temps at least until the right person is found.

All of these come down to one question, “Why do people temp?”

Traditionally, people become temps because they are either looking for permanent work or recently relocated. For women, they could be expecting and prefer reduced work hours.

Then you have the “Professional Temp” who makes more money than a permanent or regular employee.

Professional Temps have greater flexibility in their time. They can take vacations whenever they want. Unlike permanent employees, Professional Temps have the option of walking away from the portfolio once the contract has ended.

By all means this is not an ideal way to live as temp work is of course, temporary. But lately much has been said about the benefits of outsourcing work. Job designations such as trust account managers to routine inspection officers have been popularly outsourced to third party service providers.

Is professional temping then the new way to outsource?

Is this why we are ridiculously busy?  Are owners now becoming used to not having one particular person to deal with? One week it could be Tina, followed by Tracey and then Scott a week later?

Is this the new “normal”?

Lauren Kropp

Director – Real Strategix


Currently, the average life span of a Property Manager is 9 months, causing a constant headache for a principal with an average rent roll of approximately 500 properties employing 3 portfolio Property Managers.  Three Property Managers, all of whom have 4 weeks annual leave per year meaning that as the business owner, you need to cover 12 weeks holidays.  The solution, “Bring in the Temp…..”

The thought of utilising a temping agency scares a lot of Principals but more so it scares the Property Manager going on leave.  In most occasions you will find the Property Manager would prefer to have their work escalate and return from leave busier than ever than to have a temp come in for a week and make things worse.

Larger offices will have a ‘floater’.  A floater is exactly that.  They cover the holidays, are familiar with clients, staff and procedures but the down side is they are another full time wage that many offices simply cannot afford.

Hiring a temp does not have to be scary if you employ a specialised agency to source a temp for you.  Most Property Management recruitment agencies will focus purely on permanent staff but some may also provide temporary assignments.

There are generally 3 types of Property Management temps.

1)      The temp who comes in and decides to change all your systems and procedures

2)      The temp who will answer the phone but does little more.

3)       The professional temp.

Part of my role as Director of Real Strategix is to find the professional temp!  A person might look great on paper, however, once they are in the role – they can often turn into a number 1 or a number 2 temp!

If you are sourcing a temp, there are a few ways to find out if the temp agency has completed an appropriate candidate review.

Ask the agency if they have placed this candidate before and if so, for how long.  If it was only a couple of days, make sure that you request a verbal report on the person and ask if you can call the office which utilised them. (they may not allow this due to privacy restrictions, in which case you could ask the agency if the office could call you)

If the appointment was for an extended period, a good question to ask is whether the candidate was offered a full time role when their temp contract ended….this obviously confirms that they are a good worker.

Ask the agency if this temp is covered under their Professional Indemnity Insurance and if not, hang up the phone!

Remember that you are the client and the temp agency is technically applying for a job….ask the agency if they personally would allow this candidate to work in their offices….if they stutter or stumble then you do not want this candidate working in YOUR office.

A temp in QLD (Real Strategix only specialises In QLD temping so I cannot comment on specifics for other states) is allowed to be contracted to an agency for no longer than 30 days at a time.  Even though you would obviously prefer a Property Management Temp who has actually held current registration previously, this is not a requirement, the reason being that a ‘temp’ is not employed under your workplace employment agreement.  However, temps are NOT allowed to perform the following duties of a registered Property Manager:

  • They cannot sign the following:    RTA forms, any Agreements and/or trust account receipts.
  • They cannot make a final decision on tenancy applications or major maintenance approval without obtaining approval from either the landlord affected or a Property Manager.

 

With that being said there is still a great deal that a Property Management Temp can assist with such as:

  •  Phone calls, emails, fax enquiries
  •  Arrears & maintenance
  • Landlord, tradesperson & tenant liaison
  •  Tenancy documentation (renewals, bond increases, lease or vacating preparation)
  • Tenancy Application checks & bond finalisation
  • Inspections

Basically, treat your temp as you would anyone working in your agency who does not have a current registration.

If you would like any additional information on employing a temp at your agency please do not hesitate to contact me.

Lauren Kropp

Director/Consultant – Real Strategix