If you're a Property Manager (PM), you could be forgiven for thinking you won the job popularity sweepstakes recently. If you have been getting an unprecedented amount of headhunting calls from Agencies and Recruiters in the past few months, there is good reason...
Property Management is facing a looming talent crisis bubble that is seeing the usual supply & demand issues, and it's forcing some Agencies to take uncomfortable risks!
With a recent surge in salaries on offer for the right people, and not enough of the right people to go around, it's directly effecting more than the Agencies themselves, it's effects are being felt by the investors too...
What do you do if your star Property Manager gets headhunted & leaves their job and is replaced by someone you don't know? Simple...you'd probably find out where they went and follow them right? It's a big issue for Agencies and it's an issue their prepared to fight for...
Not only have some Agencies lost good staff recently, but loosing properties from their portfolio is a double whammy on profitability, as some investors simply decide to follow the Property Manager they know and trust to their new gigs, over loyalty to the Agency they signed with...
During the past 2 years of sporadic COVID lockdowns and people having to work from home, Agencies were forced to rely on their most experienced PM's to keep the wheels turning, but this has left a 2 year gap of trainee's that would usually get to learn the ropes...
All of these forces have combined to create "the perfect storm" that is hitting the engine room of Real Estate Agencies across the country, with some starting to get desperate. Agency Principals have had to quickly shift their focus from growth in a booming market, to plugging the holes in the PM teams, re-fill the positions as fast as possible and stop the bleeding as quickly as they can...but it's easier said than done!
Replacing experienced Property Managers with comparable PM's on even more money, is a cycle building up to spur on big price hikes across the industry in the immediate future...
You just can't keep loading people up and expect nothing to give!
"Even though the demand is unprecedented, some Senior Property Managers are simply fed up with the work. With the constant pressures from the Agency to perform, phone ringing off the hook, teammates leaving, working around the clock and irate clients & tenants, it's driving a level of stress that some feel is not worth it...no matter what salaries are being thrown around" (Recent comment from a Senior PM we placed).
Senior PM's with holes in their team, feel they have been left picking up the shortfall in talent, for no change in remuneration and being loaded with bigger and bigger portfolio's to manage...
"How can anyone manage 180 - 300 + properties without help? It's virtually impossible to do it properly on your own" one Senior PM said..."And the Agency is struggling to find someone with the right skills to help out and their reluctant to pay what their asking when they do..." they went on to say.
It seems this view is shared by many within Property Management. It's also being felt on the other side also. The shock we hear in some Agency owner's voices when we educate them on what salaries are being offered in Property Management at the moment...may have surely made them consider if it's just easier to sell the PM Portfolio altogether...and some are!
Where has all the talent gone?
Placed Australia Real Estate Recruitment founder - Andrew Turnbull in Brisbane said: "Every week we are getting calls from Agency Principals screaming for experienced Property Managers..."
"Some Agencies have been forced to re-think their base salary and conditions on offer, from an average of around $50k - $60k not that long ago, to anywhere from $65k - $85k + Bonuses + Car in some instances, even more in BDM roles. Some Agencies simply don't have the budget to go higher and their taking risks on less experienced hires..."
"A lot of Senior PM's are becoming more difficult too, wanting to work from home now. They proved they could do it during COVID and of course, they much prefer this option, but it's not that realistic for most Agencies in the long run. Some Agencies are reluctantly conceding, just to get the talent, even if they agree to just a few days a week from home, but their not happy about it... It can't last" Andrew said...
"Even candidates with just one years experience in PM is enough to get a decent offer at the moment...but we're not seeing a readily available talent pool either. It's drying up fast!
"A candidate with 1-2 year's experience that think they're a Senior PM, is not the same as someone with 16 year's, and Agencies who took the risk by putting on less experienced staff are getting frustrated with the skill gap and the cost...and we're seeing more PM's with short stints on their CV...and more candidates in the 5+ year experience range throw in the towel as a result and look for jobs in other industries.."
"Agencies almost need to hire 2 people, one Senior PM and another Junior to put under the wing of the Senior PM to train them up, but the cost doesn't add up for most...although some Agencies are seeing this gap too and are prepared to take this on."
"If we had 30 + experienced Property Managers on our books right now, we'd place them all within a week, all on great salaries and with some of the best-known Agencies & Boutiques in town", Andrew encouraged...
"If you're a Leasing Agent, BDM, Assistant PM, Property Manager or Senior Property Manager looking for a role in QLD Real Estate, and you are interested is seeing what's on offer, simply pick up the phone an call Placed Australia Real Estate Recruitment immediately!" Andrew pleaded.
The REB highlighted in an article on the 15th Feb 2022, in a survey of over 770 Property Managers, that 1 in 4 Property Managers are considering leaving the industry altogether...
Reflecting on the findings, MRI Software industry principal Josh Symons issued a warning to business owners and principals, calling Property Managers “the lifeblood of every real estate business”.
Arguing that “we need to ensure their experiences are not lost to the profession”, Mr Symons said that “losing good people from real estate is not a trend any of us should be willing to accept”.
As it stands, almost twice the number of Property Managers are leaving the profession in 2022 as they were the first time the report was compiled, back in 2018, when 12 per cent of respondents indicated the same intention.
The report conceded that if nothing changes soon, it will be the business’ bottom line that bears the brunt of the “Great Resignation” in the real estate sector.
With such a rapid jump in salaries to attract the right staff in PM, some Agencies are even considering having the hard discussion with clients about increasing management pricing to cover the shortfall...and of course, this looks like the only plausible solution in the long run...
