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What are the biggest issues facing professionals in property management?
A recent roundtable hosted by the Real Estate Institute of Australia (REIA) has shone a light on the concerns held by the 41,000 property managers across the country who collectively manage 75 per cent of private rentals.
The event instigated the REIA to put an action plan in place with a “commitment to transformative change” in order to address the difficulties of the sector. Through the process, the institute delved deeper into the factors shaping the current state of play.
Ultimately, the REIA identified seven issues that need to be addressed in property management:
- Outsourcing and migration
- Productivity of portfolio
- Technology and innovation
- Culture in the workplace
- Employee health and wellbeing
- Growing rent roll
- Recruitment and retention
Acknowledging the need to support not only the managers of tenancies but Australian renters (of whom there are 8 million) and Australian property investors (which add up to 2.2 million) as well, the action plan aims to “identify pragmatic measures and develop a concrete action plan that will advocate, unlock growth and better support the property management industry”.
The institute has separated the factors that impact property management currently and into the future into six subsectors, not only identifying the topics on which real estate will need to have a voice to advocate for the interests of the sector, but explaining why the Property Management Action Plan is necessary.
Political
- Sentiment is on the side of the renters and governments stepping in to play an increased role in social and affordable housing.
Economic
- Rental availability over rental affordability crisis.
- Supply is the fundamental factor shaping markets.
Social
- Attracting and retaining talent continues to be a challenge.
- There is a growing divide between renters and property owners, highlighting an “us versus them” mentality and a lack of shared prosperity.
Environmental
- Challenging, high-pressure work environment.
- Work-from-home fragmentation of workforce.
- Greening of the built environment, net zero 2050.
Technological
- A rapidly evolving technology landscape presents both advantages and challenges.
Legal
- National cabinet’s 9-point plan for renters’ rights.
- Reforms including privacy, taxation, short stays and anti-money laundering (AML).
- State-based Residential Tenancies Act (RTA) regulation.
REIA CEO Leanne Pilkington said that with the organisation’s sights set on the betterment of the industry, the REIA has committed to “addressing the sector’s challenges head-on and meet the needs of renters, investors, the labour market and our businesses”.
With the delivery of the plan, the REIA believes they are “well-positioned to effectively address industry challenges and propel the industry forward”.
“The implementation of our action plan and our committee stand as pivotal steps towards meeting the evolving needs of both industry professionals and renters while ensuring the continued evolution and future-proofing of the property management industry,” it read.
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