Property managers are expected to juggle all kinds of responsibilities, from balancing budgets to investigating emergency water leaks, all while ensuring that both properties and residents are cared for. Their ability to balance these responsibilities can mean the difference between a thriving property with satisfied, long-term residents and a building battling costly vacancies.
But understanding how to hire property managers for such a multifaceted role isn’t easy.
The demand for skilled property managers is only growing. According to the U.S. Bureau of Labor Statistics, property management roles are projected to increase by 5% through 2032, and with over 518,000 rental units expected to come online in 2024¹, competition to hire top talent continues. Compounding this challenges is the industry’s high turnover rate–22.5% for onsite management²–making retaining great managers just as critical as hiring them.
Adding to the complexity, technology is also changing the rental industry. Online reviews now hold significant sway over renters’ decisions, with 81% saying reviews are a critical factor when choosing an apartment. In today’s digital-first landscape, property managers must not only address tenant needs in person but also protect their property’s reputation online.
So how do you hire exceptional property managers who can navigate these challenges, boost resident retention, and protect your property’s brand?
The Vital Role of Property Managers
Property managers are the backbone of successful properties. They oversee daily activities, coordinate maintenance, handle resident relations, and navigate ever-changing regulations.
But their impact doesn’t stop there. Data shows that reducing staff turnover by just 3% can decrease tenant turnover by 4%³, directly improving a property’s net operating income. Engaged property managers inspire engaged teams, and engaged teams deliver better resident experiences. In fact, properties with highly motivated staff see renters that are 6% more likely to renew their leases³.
A great property manager doesn’t just keep things running–they create an environment where residents want to live and employees want to work.
The Challenges of Hiring and Retaining Great Property Managers
Property management is demanding. Managers juggle tight budgets, unexpected maintenance crises, and tenant relations while being on-call for emergencies. According to a recent NAA study, 47% of property managers describe their workload as busy yet manageable, but 68% report that job stress negatively impacts their mental health.
Tenant relations add another layer of complexity, with 22% of property managers citing aggressive or abusive residents as a top challenge⁴. Balancing these demands requires managers who are not only skilled but also adaptable, resilient and committed to fostering positive relationships with residents and employees alike. This makes how to hire property managers who can handle stress, navigate conflict, and align with your culture all the more critical.
What to Look for in a Property Manager
To succeed in property management, candidates need a unique combination of hard and soft skills. Focus on these qualities:
Financial Expertise: A great property manager must successfully understand and manage everything from scheduling and maintenance to hiring and financials. Effective managers understand budgets, can track expenses, and identify opportunities to boost profitability while ensuring smooth day-to-day functions.
Leadership Skills: Managers should be able to motivate employees with a wide range of experience, building commitment and engagement within the team. They must lead by example, fostering a positive environment where employees feel valued.
Customer Service Excellence: With onsite staff influencing 20% of renters’ leasing decisions², manager’s ability to connect with tenants and resolve issues is crucial. Managers must have strong communication and conflict resolution skills to effectively handle tenant concerns while protecting the property’s reputation.
Adaptability: From shifting regulations to unexpected tenant challenges, the ability to stay flexible is key. Managers must be able to juggle a variety of tasks and responsibilities while improving to meet evolving resident requests and ensure employee retention.
Reputation Management: Proactive engagement with resident feedback–positive or negative–is crucial. Managers who address issues quickly and act on resident input builds trust, increases tenant satisfaction, and encourages positive reviews.
Cultural Fit: As the face of the property, managers must align with organizational values and foster the desired workplace culture. They play a key role in promoting a positive atmosphere and sense of community that keeps employees and residents engaged and aligned with the community’s goals.
Strategies for Hiring and Retaining Top Talent
If you want to know how to hire property managers who will excel in your organization, start by adopting a thoughtful and data-driven approach. Here’s how:
Use Comprehensive Assessments: Go beyond resumes. Assess candidates’ behavioral and cognitive skills to predict whether a candidate can handle the complex responsibilities of managing properties.
Leverage Data-Driven Hiring Practices: Identify the traits that make great managers and use analytics to evaluate candidates against these criteria. This ensures that you’re hiring based on evidence rather than instinct, reducing bias and improving candidate quality.
Create Clear Career Paths: With 74% of property management professionals planning to stay in the industry for at least three years, offering development opportunities can build long-term loyalty and increase job satisfaction.
Offer Competitive Compensation: The demand for skilled property managers continues to grow, making it essential to offer salaries and benefits that reflect the demands of the role. Competitive compensation packages demonstrate that you value your employees’ expertise and contributions.
Foster Engagement: Engages employees–those who feel their work is meaningful and supported–are more likely to stay. Create an environment where employees feel their work is meaningful, supported, and aligned with organizational goals. Properties with engaged teams also see a significant boost in resident satisfaction and renewal rates.
Promote Work-Life Balance: Nearly 68% of property managers report mild to moderate negative impacts on their mental health due to job stress⁴. Offering flexible scheduling, mental health resources, and a supportive work environment can help alleviate these challenges.
Why It Matters
At its core, property management is about people. Strong property managers don’t just handle the day-to-day–they create an environment where residents feel at home and employees feel empowered to succeed.
From reducing tenant turnover to enhancing your property’s reputation, investing in the right talent pays off in every way. With a thoughtful, data-driven approach to hiring and retention, you can build a team that meets today’s challenges and sets your properties up for long-term success.
Conclusion
Reducing turnover in property management requires hiring managers who align with your organization’s values and are equipped to handle the unique challenges of the role. From financial expertise to leadership and adaptability, the right fit can make all the difference in creating a supportive workplace culture and ensuring tenant satisfaction.
HighMatch simplifies the process of finding exceptional property managers with our personalized, data-driven assessments. Backed by our team of Industrial-Organizational psychologists, our assessments provide actionable insights into candidates’ leadership abilities, problem-solving skills, and cultural fit. By collaborating with your hiring team, we ensure every assessment is tailored to your specific needs, so you can confidently identify the best candidates for your properties.
Explore our property management solution here.
REFERENCES:
- ¹ https://www.rentcafe.com/blog/rental-market/market-snapshots/new-apartment-construction
- ² National Apartment Association (NAA)
- ³ https://gracehill.com/blog/data-connection-associate-retention-drives-resident-renewals/
- ⁴ https://www.naahq.org/sites/default/files/2024-09/NAA_VOPM2024%20FINAL%20copy.pdf
