We want you in real estate! But not now, sorry.
Date: 8 Nov 22
Opinion Editorial published in the Herald Sun on 8th November 2022
By Andrew Meehan, President Real Estate Institute of Victoria
There’s never been a more important time to review the way we attract, educate, and retain new talent in Victoria’s property sector.
According to a 2020 snapshot of renting in Victoria, almost 620,000 households are living in rentals -67 per cent of these renting through a real estate agent – a number that’s no doubt increased with the constraints of affordable housing and taxation across Victoria.
Right now, according to seek.com.au, there are more than 1,400 Property Manager jobs advertised in Victoria.
I’ve worked in real estate for over a decade and it’s safe to say the last two years have seen a torrent of challenges like never before, resulting in a mass exodus of property managers and residential property providers.
In the thick of a rental crisis fuelled by a lack of housing supply and persistent market headwinds including rising interest rates and an archaic taxation policy, the last thing the property sector needs is additional barriers for those who aspire to work in it. But that’s exactly what’s happening.
From October 2021, to become an Agent's Representative in Victoria (an entry-level role) it became mandatory to complete a Certificate IV in Real Estate Practice, which generally takes up to six months, full-time. That’s a good thing, I applaud strong education for real estate practitioners. The issue is that you cannot do any form of real estate work until after you have fully completed, and passed, the Certificate IV. Imagine a Builder’s Apprentice not being allowed onto a building site.
At a time when the entire country is short-staffed, common-sense legislation needs to prevail.
This all comes down to the Victorian legislation stating that to work in the industry you must have ‘passed’ the requisite training course.
If the legislation were amended to allow people undertaking their Certificate IV to undertake internship-like duties, it would help solve existing workplace constraints and provide significant relief to the sector with job-ready workers at the completion of their studies.
Compounding the problem is the recent departure of nearly 40 per cent of the property management workforce, with many citing the onerous new conditions under the updated Residential Tenancies Act.
This has created a debilitating hit to thousands of small businesses across Victoria.
Of the 9000 real estate businesses registered in Victoria, of which my business is one, the Real Estate Institute of Victoria (REIV) membership data shows that 80 per cent of these are small businesses operating with fewer than 10 staff.
If these businesses were able to open their doors to students undertaking the Certificate IV, enabling participation in active duties, under supervision, they’d have an extra pair of hands-on-
deck to better serve hundreds of thousands of renters and tens of thousands residential property providers. And it would help the business keep the lights on.
Allowing the next generation of aspiring real estate professionals to hit the ground running with hands-on experience just makes sense.
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