Master the art of conflict resolution

2 days ago
4 min read

*With more than 30% of all households renting, property managers make a huge contribution to the wellbeing of our society*

In the demanding world of real estate, property managers stand on the frontline, bridging the gap between landlords and tenants.

Their contribution to Australian society cannot be underestimated. Some 31% of households (2.9 million) are renters, and 26% (2.4 million) deal with private landlords or their property managers.

Almost 2.3 million Australians own at least one rental property and collectively they account for 3.3 million investment property interests in either the residential or commercial sectors, according to the Australian Taxation Office (ATO).

Of this number, 71% are what we’d call “mum and dad investors”.

The tight rental market, combined with the post-Covid inflation of rents and maintenance costs, continues to be a cocktail of tension between tenants and landlords. And in the middle stands the Property Manager!

Your role is far more intricate than simply managing assets. It's about navigating complex human relationships, often at moments of high emotion.

From the joy of a new lease to the stress of an unforeseen problem or, more challenging, the deep personal upheaval of a divorce or a death that impacts on a tenancy, you are called upon to be more than just an administrator.

You are a mediator, problem-solver and emotional anchor.

This unique blend of responsibilities means you frequently bear the brunt of difficult conversations, requiring a robust toolkit of skills to maintain harmony and protect your own wellbeing.

So, how do PMs manage these high-stakes interactions? Here are best practice tips for conflict management:

Listen and Empathise

Actively listen to a tenant or landlord’s concerns, as this is a vital skill in dispute resolution. It's tempting to jump in and explain or argue, but mastering listening allows you to understand, ask questions and empathise. This approach helps to build trust and shows you care about each party’s concerns. Use phrases such as, "I can understand why you’re upset", or "I appreciate that this has been frustrating for you".
Paraphrasing and clarifying ensures understanding. In a one-on-one situation, appropriate eye contact and body language will soothe heightened emotions.
De-escalation training emphasises the recognition of early signs of agitation and the use of calming language.

Collect All Information

What is the dispute about? That seems an obvious question, but there may be some underlying issues that are being expressed through a separate complaint. After hearing concerns, take time out to consider what the dispute is about, how it occurred and how it can be resolved.
Most conflicts typically stem from one party believing they are owed something by the other.
Keeping an open mind, doing research and recapping both sides of the story helps to achieve perspective. This proactive approach helps prevent issues before they escalate.

Be authentic and timely with communication

A lack of communication is one of the most common complaints landlords and tenants have about PMs. Issues can easily escalate if left unresolved, or if parties feel communication has been insufficient. A timely response is always the best approach.

Consider the use of multiple methods of communication (e.g. phone calls, emails, letters). Layered communication, such as posting information on bulletin boards, online portals and in newsletters, can increase understanding and ensure accuracy.
Set clear expectations with landlords and tenants regarding common conflict areas, such as wear and tear, rent arrears and repairs. This will help to prevent misunderstandings. As best practice, develop a communication protocol detailing contact points and expected response times.
Keep robust and detailed records of every interaction, discussion and action. These records protect you and justify your actions. Agreements should be in writing and signed by all parties, detailing the resolution, terms, and follow-up plan.

Deal with the problem, not the person

When tempers flare on the tenant or landlord side, you’ll often find yourself on the receiving end. It is crucial to avoid responding with personal comments or attacks.

Focus on calming the person by listening and showing empathy, and then doubling-down on the issue. Suppress your personal feelings and always treat everyone with respect.
De-escalation will also help you manage your own stress responses and maintain a clear mind. Taking a deep breath and pausing can help collect thoughts.
Strive to shift your mindset from seeing a conflict as "awful" to an "opportunity to clear the air and better understand each other". This so-called "Too Hot" technique can help identify escalating conflict through cues like agitated statements, one-sided solutions, open blaming and changes in tone or emotion.

Share your challenges

It's beneficial to ask for help or share experiences. Colleagues can offer fresh perspectives, alternative knowledge and mutual support. PM teams are often small, made up of just two or three people, where close-knit personal relationships are one of the highlights of the job. This team dynamic can be a source of support.

Research shows there is a disconnect between PMs and principals: only 38% of principals agree with a view held by 60% of property managers who find dealing with aggressive clients a major challenge.
For external support, the Real Care app is an invaluable tool for real estate professionals. It offers activities to relieve overwhelming emotions, stress and tension, and has proven beneficial with 78% of users currently active. It also provides free counselling sessions – courtesy of Domain – for individuals struggling to cope.

Be super-organised and proactive

The more organised you are, the better prepared you’ll be to minimise any challenges. Being "super-organised and proactive" is key to effective property management. Consider this data:

Property management software has become indispensable for handling complexities, driven by the need for efficiency, scalability, compliance and data-driven decision-making. Some 52% of agencies change software regularly to embrace greater efficiency.
While property management software offers features like document management, notifications, alerts and reminders, only 34% of PMs believe they have the tools and resources to do their job correctly.

As a leader in your property management team, you should consistently assess software solutions that promise efficiencies for your agency. When identifying a particular solution, work with your agency’s senior management to assess your initial analysis.

And remember, explore the Real Care app provided by The Rise Initiative if you are undergoing the stress of conflict. It offers tools and techniques to help you cope.