Employee Credentials Becoming More Valuable to Property Management Companies
With the continuing expansion of the market, property management companies are placing more importance on employee credentials. In a recent L.E.K. survey, 86% of property management execs rated employee credentials “very important.” The impact credentials like CAM for apartment managers and NALP for leasing professionals have on profitability through improved employee performance and career stability is becoming increasingly apparent.
Relative to other industries, property management has an extremely high turnover rate (as high as 19% for leasing agents). High turnover results in increased training and recruitment costs, as well as lost revenue due to inexperienced employees. Credentialing signals a commitment to the industry, which companies value. Credentialed employees tend to stay with the industry longer and perform better.
Increased regulatory scrutiny has made staff retention and competency more important than ever. Credentialed employees lower risk for property management companies both because of the increased knowledge that credentials training gives them and because of the increased experience of a longer average tenure.
Companies that employ more credentialed employees have a better reputation in their market. As the director of training for a property management company with over 20,000 units told Grace Hill, “Having a lot of employees with credentials can get you an edge over competition. When you market your company, you can make that a selling point and improve your brand.”
Grace Hill forecasts that the importance of credentialing will continue to grow with the market, making it a key factor in employee selection and company-provided training. Read about more industry trends and forecasts in our new Market Report: Growth and Complexity. Explore your credentialing options with Visto.