Property Management

October 16, 2024 Published by Golden Horseshoe Chapter - By Patrick Greco

Holding Out for a Hero: Where Have All The Property Managers Gone?

From the Volume 21, Fall 2024 issue of the CCI GHC Condo News Magazine

Finding a property manager who is the right fit for a community sometimes feels like a quest for the Holy Grail. And if you’re in the condominium industry, you know that this quest is becoming more like a desperate scramble.

The Vanishing Act

Prior to the recent slowdown, Ontario’s condominium market was booming for most of the 2000s. According to the CAO, there are just under 900,000 units and counting. The demand for property managers is skyrocketing. But here’s the kicker, according to the CMRAO, there are only 2,600 General Licensee property managers licensed to oversee all these units.

Why the Shortage?

Several factors contribute to this shortage. First, the regulatory landscape has changed. The Condominium Management Services Act, 2015, which came into force in 2017 brought in strict licensing requirements. While this was a necessary move to weed out the bad apples, it also meant that many experienced managers either retired or left the industry rather than jump through these new hoops. It also presented a formidable hurdle to bringing fresh blood into the industry.

Second, the job itself is no walk in the park. Property managers are responsible for everything from maintenance and financial management to dealing with disgruntled residents. It’s a high-stress, often thankless, job that requires a unique skill set. The worst-kept secret in the industry is the escalated level of workplace harassment that property managers have faced since the start of the pandemic which does not seem to be abating, causing increased stress and burnout.

The Ripple Effect

The shortage of property managers has a domino effect on the entire industry. With fewer managers available, those who remain are stretched thin. This leads to even more burnout and, you guessed it, more managers leaving the field. It’s a vicious cycle.

The Broader Employee Shortage

The property manager shortage is just one piece of the puzzle. The entire condominium industry is facing a general shortage of good employees. From maintenance staff to administrative personnel to young lawyers and other professionals, finding qualified individuals interested in working in the condominium industry is becoming increasingly difficult. This is partly due to the same factors affecting property managers: high job stress and better opportunities in other sectors.

The Legal Perspective

The legal ramifications of this shortage are significant. When property managers are overworked or distracted, mistakes happen. These can range from minor oversights to significant legal issues. For example, failing to arrange for maintenance can lead to costly repairs and even lawsuits. Financial mismanagement can result in budget shortfalls and even special assessments. Heap on top of all that the ever-increasing forms and formalities foisted on condos by the CAO, such as the Requests for Records regime, coupled with the sword of Damocles of a CMRAO complaint or CAT case from a resident who doesn’t like the answer they get.

Solutions on the Horizon?

So, what’s the solution? Unfortunately, there’s no magic wand to wave. However, there are steps that can be taken to mitigate the problem.

• Attracting New Talent: The industry needs to make property management an attractive career option. This means offering competitive salaries, benefits, and opportunities for advancement. One silver lining of the property manager shortage is that good property managers can command higher salaries, commensurate with the tremendous amount of responsibility they bear. The industry needs to use this as a beachhead and directors and unit owners need to appreciate that you truly get what you pay for.
• Regulatory Support: Instead of inventing new frivolities to consume property managers’ time, the government and regulatory bodies need to work together to create a supportive framework. Urgent within this is the need for a province-wide recognition and action plan at all levels – including the police and courts – to combat harassment and violence toward property managers. Other elements of such a framework could include incentives for entering the field and streamlined licensing processes.
• Technological Innovation: Embracing technology can also help. From property management software to automated maintenance systems, technology can reduce the workload and make the job more manageable.

Conclusion

Property managers are the glue that hold our condominium communities together. It may feel like a daunting task to address the critical shortage of good people entering the job but, like our housing shortage in general, we must start somewhere. In addition to implementing the kinds of ideas discussed in this article, it is also crucial to emphasize the great parts about the job: helping solve people’s problems, the ability to help sculpt a safe and enjoyable community for residents, and lots of opportunity for advancement as the whole industry expands to fill Ontario’s housing needs.

Patrick Greco, Partner SHIBLEY RIGHTON LLP Barristers & Solicitors