There is a significant and increasing shortage of condo property managers. This is a trend that those in the condo management industry have seen over the last few years and it is slowly becoming a challenge for owners of condo management companies. In this post, we explore the reasons why there have been a shortage of professional condo property managers and its impact on the industry as a whole.
Managing a condo is known to be a stressful career. Being on the front lines and dealing with a large number of folks on a day-to-day basis while solving a myriad of problems is the challenge that managers face. It is a position that requires multiple skills and a versatility that typically commands a certain salary. However, while compensation in other industries have risen, salaries in the property management world, in general, have not been commensurate of the work involved.
The reason for this may perhaps be due to the fact that boards and thus consequently, property management companies often feel the pressure of containing condo fees at certain lower than desired levels. In the end, that is the metric with which their success is based on - to lower costs or maintain them at certain levels. There is a good likelihood that it is a contributing factor to the shortage of managers.
In the past few years, we have seen some drastic legislative changes in the condo industry across many jurisdictions. Broadly speaking, the changes resulted in significant increases of the workload of property managers. While the changes vary across jurisdictions, in provinces like Ontario and Quebec, condo managers now have new duties to revise procedures regarding annual general meetings, increased filing requirements and greater focus on transparency, among many others.
In many cases, the increased workload has not translated into a boost in compensation for those involved. While schools have done a good job in refining their curriculums in the field of property management, there has not been a corresponding increase in student enrolment.
Experience and Age
Another important factor is that the average age of managers has been increasing and the trend looks to continue for the foreseeable future. The influx of new property managers is simply outpaced by those extending their retirement age. As result of this imbalance, there has been a lot of occurrences of property managers being poached by other property management companies as they all seek experienced candidates. There has been many instances where property managers have been offered signing bonuses to join another management company.
How to Close the Talent Pool Gap in Condo Management
The shortage of property managers in the condo industry is a challenge and a growing one at that. So what can be done to tackle the problem? We offer a couple of alternative to reverse the trend:
- Use technology: Using the right software to streamline the growing workload of property managers has become a critical component. While software has made significant inroads into the industry, there is still massive room for growth and ubiquity.
- Education of property managers: Education on the skills and knowledge required to be a good property manager has made a lot of progress in recent years. This is something that needs to be further emphasized for all entering into the industry.
- Education for boards: Boards have to be better educated on the tasks and responsibilities that property managers undertake. This will in turn allow them to understand why it is they are paying for their services.
While the challenges are there, the industry is actually in a strong growth period. More and more condos are being built across all cities and that means that the need for property managers are growing also. It is becoming an increasingly important profession. Please feel free to reach out to us and we would be more than happy to discuss how to facilitate the job as condo managers.