Guiding growth, not managing maintenance: The future of property management

According to Pamela Styling, DiJones head of investment management, while PMs used to be all about email responses and maintenance management, the industry has begun to move the goalposts as investors seek a more strategic approach to their properties.

Styling said the shift to a more focused, proactive role prompted her network to adjust its strategies, switching their PM’s title to “investment manager” (IM).

She said that the IM title came with an entirely different set of responsibilities focused on protecting, optimising, and guiding a property’s performance.

“The traditional PM works far more on an inbox, and a lot of the role is administrative,” Styling said.

“The way I see an IM role is much more of an outbound role.”

“A lot of the administrative tasks are taken off the IM and handled by automation or administration teams, and the IM is elevated to that expert who deals with outbound work that is strategic in nature.”

Styling said that IMs have been developing tailored strategies for their investors rather than simply managing their properties in response to requests as they arise.

She added that as the role of IMs grows, PMs should educate themselves and be ready to develop strategies that minimise risk and identify the best opportunities to maximise returns.

According to Styling, IMs should treat property repairs in a similar manner to a strata capital works fund, planning around their life spans to provide owners with a clearer picture of their expenses and returns.

Similarly, she said that understanding the market and the timing of rent increases will be essential to maximising clients’ returns.

“Being really strategic can change a return by five or 10 per cent in just one year, and that compounded over four or five years can be really substantial.”

Navigating the shifting landscape

Styling said the shift from PMs to IMs would not happen overnight, with the industry needing time to adjust.

“I think it is going to take several years for the people sitting in the seat performing the role to be comfortable performing the new role,” Styling said.

“Instead of repairs and maintenance, they’re talking capital works, yields and improving yields versus increasing rent.”

“It’s a financial language that they have to learn, which is going to take some time.”

For PMs looking to shift from a traditional role to a more proactive approach, Styling said they should educate themselves through external courses as well as in-house training.

“I do think it could potentially be a role where further education is required in the future to remain relevant.”

“It needs ongoing training throughout your life as an IM, not just ‘let’s get a job out of school and see how we go’.”

“I think you have to be very deliberate in your upskilling of yourself and not just rely on a business.”

She said the PMs who had been the most successful at making the switch were those with a passion for service and improving returns.

“Like the old traditional PM who loved renovating properties for clients and securing stronger returns.”

“This is the new version of that.”

Happier PMs = better business

According to Styling, since the network began giving her team more responsibility, she has seen a significant boost in IM morale.

“It alleviates the pressure that PMs have felt in having to do everything and be everything.”

“I think because it can be such a high-volume role, there is a lot of burnout there.”

“This new role is not a high-burnout role because it’s a proactive, strategic and outbound in nature role, which gives team members a lot of satisfaction.”

She said that because staff felt they were achieving higher levels of satisfaction in the role, they were achieving better results for their clients and, in turn, the business.

According to Styling, the increase in job satisfaction had also made it easier to retain staff.

“It’s unique because retention of staff is no longer an issue.”

“The role is so different from what other agencies are doing that I am not finding issues with retention or competition.”

While the switch continues at DiJones, Styling encouraged other networks to consider the shift and place greater emphasis on their property management arms.

”I’ve been an advocate for this role becoming really seen as an expert versus just an administrative role that sits beside sales in a business.”

“I think this is a serious business now.”

“I’d love to see that industry-wide,” Styling concluded.