The Great Property Management Black Hole of 2016

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