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The housing shortage in Canada is certainly not new news, but something the media doesn’t report is the shortage of professional property management companies. Let’s go through the math. Our population just reached 40 million, 33% of Canadians are renters, yet we only have about 20,000 property management companies in the residential space. That gap in service doesn’t stop there.
Factors that are starting to further increase the gap:
New construction
Retirement
Increased workload
Increasing Demand for Property Management Services
With construction underway, including purpose-built rentals, the Canadian real estate market has also experienced remarkable growth in recent years, leading to an increased number of residential investment properties. These properties require effective management to ensure seamless operations, tenant satisfaction, and proper maintenance. Property owners are increasingly recognizing the value of professional property management services to handle the complexities of rental properties, leading to a surge in demand for qualified property managers.
The Retirement Wave of Current Property Managers
As the baby boomer generation nears retirement age, the property management sector faces a wave of experienced professionals leaving the workforce. Many seasoned property managers, who have been pillars of the industry for decades, are choosing to retire. This exodus creates a significant void of experienced talent in the field, leading to a shortage of capable professionals to manage the growing number of properties in Canada.
Changing Provincial Legislation
Property managers face both increased workloads and evolving provincial legislation as governed by the province(s) they operate in. With a surge in rental demand, property managers are grappling with the task of managing a larger portfolio, qualifying (sometimes hundreds of) applicants, while providing top-notch service to their clients. Ever-changing provincial legislation can introduce new compliance requirements and administrative burdens, further stretching the capacity of property managers to stay updated and comply with the latest regulations. As a result, many property managers find themselves struggling to maintain efficiency and effectiveness in their roles amidst these mounting pressures.
Why It Matters
The shortage of property managers has the potential to create significant challenges for both property owners and tenants. Without sufficient management expertise, properties may experience suboptimal maintenance, delayed issue resolution, and increased vacancies, negatively impacting property values and rental revenues. Moreover, tenants may face inadequate support and compromised living conditions, leading to a decline in tenant satisfaction and retention rates.
To maintain a healthy and thriving real estate market it is essential that the industry avoids these types of disruptions to ensure the longevity of successful rental property ventures.
What Can We Do:
Encourage Young Talent and Professional Development
By promoting the diverse opportunities, embracing technology and demonstrating how rewarding this industry can be, we can attract a new generation of skilled professionals. Fostering ongoing professional development programs and certifications will ensure a continuous influx of qualified individuals ready to meet the industry's demands.
Collaboration and Mentorship
Collaboration and mentorship between experienced property managers and emerging professionals are crucial to bridge the skills gap. Seasoned professionals can pass down valuable knowledge and expertise while providing support and guidance to the next generation of property managers. Establishing mentorship programs will promote knowledge transfer, enhance skill development, and instill a sense of purpose and passion for property management.
Together, as an industry, we can pave the way for a bright and promising future in property management in Canada.
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