Innovation and focus on workplace culture drive the future of property management

New report finds tech take-up and flexible work practices empower property managers to drive profitability and reshape the industry

Sydney, 26 September 2024 – The property management industry is undergoing significant transformation, driven by increasing contributions to business profitability and the adoption of new technologies, according to the latest research from global proptech firm MRI Software.

The Voice of the Property Manager 2024 report, now in its third edition, provides a comprehensive overview of the property management landscape across Australia and, for the first time, New Zealand, revealing key trends, challenges, and opportunities shaping the industry.

The financial contribution of property management now accounts for 48% of real estate agency revenue—a substantial increase from 29% in 2007*.

MRI Software Director – Strategic Partnerships Director Dr Sarah Bell, said property management as a profession is evolving rapidly, empowered by innovation, changes in workplace culture and its substantial contributions to the bottom line.

“Property management is not only crucial to daily operations but is also driving long-term growth for real estate agencies,” Dr Bell said.

“The increased revenue highlights just how essential property managers are to the future of the industry. They’ve been empowered by the value they deliver to the business.”

Innovations in tech and supportive culture drive job satisfaction

Despite pressures such as rising tenant demands, regulatory changes, and increasing workloads, 71% of property managers feel satisfied with the flexibility of their role, and 73% reported feeling their company genuinely cares about their wellbeing.

Dr Bell said these findings reflect the investment many agencies have made in additional training, flexible work arrangements, and wellbeing programs to support their staff.

“These statistics highlight the profession’s adaptability and care for employees, which should be viewed as a strength rather than a challenge,” Dr Bell said.

The uptake of innovative technologies, including AI, is helping drive change. The report shows 76% of property managers are satisfied with the technology their teams are using, while 72% see AI as a significant opportunity to enhance productivity and improve work-life balance.

“With the adoption of these technologies, property managers can now focus more on strategic tasks and client relationships, which is elevating their role within agencies,” Dr Bell said.

Chantelle Collin, Head of Property Management at BresicWhitney, said the industry’s transformation is creating new opportunities for professionals seeking rewarding property careers.

“With advancements in technology, and the increasingly clear value proposition of holistic management services on the real estate cycle, the role of dedicated professionals has never been more vital,” Ms Collin said.

“Property management is an exciting and rewarding career; one that will continue to evolve with broader technological advancements. A shared commitment across the industry to improving client experiences and driving employee satisfaction, while delivering sustainable outcomes, has never been more important.”

Since the last report was released in 2021, property managers have had to navigate challenging market conditions, including rising interest rates, inflation, and high rental demand.

Some report respondents acknowledged they had faced aggression from both owners and tenants, and more than half struggle to manage their workload and switch off after hours, contributing to 54% experiencing mental health struggles due to their demanding roles—a figure that has remained steady since 2021.

Dr Bell said it was encouraging to see the proportion of employees reporting mental health difficulties plateau. However, ongoing investment in wellbeing support and training, combined with efforts to attract new talent, will be crucial to the industry’s continued success.

“This isn’t just about managing properties—it’s about managing relationships in a high-pressure environment,” Dr Bell said.

“Property managers are dealing with tenant expectations, coordinating trades, handling cybersecurity concerns, and keeping up with ever-changing legislation. To ensure the industry’s sustainability, we must recognise the contribution property management makes with access to quality training and support resources.”

Key findings:

• Technology and AI – 75% of property managers are satisfied with their technology tools, with AI seen as a key opportunity to reduce time-consuming tasks.
• Workload and mental health – 47% of property managers work more than 41 hours per week, and 54% report mental health struggles.
• Perception of stakeholders – 48% say perceptions of landlords by renters is their biggest challenge to overcome and 45% feel it is the market perception of property managers they need to address.

The full report is available for download here.

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Source* Macquarie Real Estate 2023 Benchmarking Report