In a compelling discussion hosted by Thomas Beattie of OctoAI, Jason Kurtz, President of StrataWest, shared valuable insights about tackling one of the most pressing challenges in property management today: building and retaining exceptional teams in an industry facing a significant labor crisis.
The Strata Management Crisis Is Real
Jason doesn’t mince words when it comes to the state of the industry: “Very much so”, there is indeed a strata manager crisis. Having been interviewed about this looming crisis for nearly a decade, Jason has watched the situation unfold with growing concern.
The math is stark and undeniable. Over the past ten years, the number of licensed strata managers in BC has remained largely static at around 1,500 licensed professionals, with perhaps only half actively practicing. Meanwhile, anyone driving through Metro Vancouver can see the hundreds of construction cranes dotting the skyline, representing thousands of new strata lots requiring professional management.
“That’s a very easy to picture math equation that just doesn’t work in the long run,” Jason explains. “It’s a sustainability crisis in our industry.”
The Aging Workforce Challenge
The crisis is compounded by demographics. Nearly half of all licensed strata managers are within five years of retirement age – a shocking statistic that represents not just a loss of numbers, but a loss of institutional knowledge and experience.
“The people who are retiring are, of course, the most experienced and wise in our industry,” Jason notes. “They’re the ones who carry the bulk of the large portfolios of really complicated buildings… So it’s not just the raw numbers that we’re losing right now. It’s also the benefit of their wisdom and their experience.”
StrataWest’s People-First Philosophy
Against this challenging backdrop, StrataWest has developed a distinctive approach to building and retaining talent. After fifteen years as local owner-operators, Jason and his partners have built their company around a simple but powerful principle: people first.
“We treat our staff members as though they are members of our family,” Jason explains. “We’re all local owner operators who are family people ourselves and want to ensure that our staff maintain a great work-life balance.”
This philosophy translates into concrete practices:
- Higher compensation than industry standards
- More time off and flexible scheduling
- Extensive training opportunities and ongoing education
- Comprehensive administrative support to reduce routine burdens
- Access to senior mentors and peer support networks
The Portfolio Reality
One of the most important things Jason wishes every strata council understood is the portfolio model that defines BC’s strata management industry. Unlike other jurisdictions where a property manager might be dedicated to a single building, BC managers typically handle 8-15 buildings simultaneously.
“You are one-eighth at best, usually, of someone’s portfolio,” Jason explains. “That means you get one-eighth of the time.”
To illustrate the contrast, Tom Beattie shared an example from California, where a single HOA community pays $150,000 USD annually for a dedicated property manager. “You pay a lot for that direct property management relationship,” Tom notes.
Managing Workload Through Strategic Pricing
StrataWest has developed an innovative approach to managing portfolio sizes and workload: they use pricing as a capacity control mechanism.
“We keep our prices high to make sure that we can keep those portfolio sizes relatively small,” Jason explains. “We’re basically constantly saying no to prospective clients… We’re interviewing them just as much as they’re interviewing us.”
This approach runs counter to the volume-focused strategies of many competitors, but Jason believes it creates a sustainable, self-reinforcing cycle: “If you treat your staff really, really well, they will stick with you. That means your clients will stick with you because they’re not seeing turnover of their staff.”
Zero Tolerance for Abuse
A crucial element of StrataWest’s retention strategy is their unwavering commitment to protecting staff from abuse. While Jason acknowledges that property management involves dealing with people during their most stressful moments – fires, floods, and other calamities affecting their homes and investments – there’s a clear line between understandable emotion and unacceptable behavior.
“We have no choice but to say goodbye to the client” when faced with sustained abusive behavior, Jason states. “Our staff need that. Our industry needs that… everybody needs to lead with kindness, politeness, especially in the workplace.”
Growing Talent from Within
One of Jason’s favorite success stories involves an employee who started as a receptionist fifteen years ago, moved through administration, became a licensed property manager, and is now “one of the best property managers in the entire city.”
“That’s a great path that anybody who’s really motivated could follow,” Jason notes. “There’s lots of opportunity. Every management company is hungry for the right individuals to join.”
This approach to developing talent from within addresses the industry’s shortage while creating deeply loyal, well-trained professionals who understand the company’s values and methods.
Technology as an Enabler, Not a Replacement
While StrataWest embraces technology and automation, Jason maintains that “systems and people matter more than technology does.” The company takes a conservative but strategic approach to tech adoption, focusing on reducing administrative burden while maintaining their personal touch.
“We still employ a person to sit at our reception desk to answer the phone, to be that personal point of contact,” Jason explains. “That’s a point of pride for us because we really do value that soft touch.”
The Future of Strata Management
Looking ahead, Jason sees continued consolidation in the industry as aging owners seek exit strategies, but he also sees increased opportunity for boutique firms like StrataWest that can offer more personalized service.
“There’s no shortage of business to go around, so I think there’s room for both approaches in our industry,” he notes, referring to both technology-focused and relationship-focused service models.
Supporting Strata Councils
If Jason could wave a magic wand to fix one thing about the strata industry, it would be to “give more tools to strata council members to understand the complexity of the job that they are doing.”
Strata councils are typically responsible for assets worth tens or hundreds of millions of dollars, yet “they get elected by their neighbors as laypeople, without any training or meaningful support.” Jason believes the entire industry would benefit from better education and resources for volunteer council members.
Key Takeaways for Industry Leaders
StrataWest’s success in building and retaining talent offers several key lessons for the industry:
- Prioritize people over profits as treating staff well creates a sustainable competitive advantage
- Use pricing strategically to manage capacity and maintain service quality
- Develop talent from within to build loyalty and institutional knowledge
- Set clear boundaries to protect staff from abuse
- Embrace technology while maintaining personal relationships
- Focus on relationships rather than volume for long-term success
As the strata management industry continues to evolve, companies like StrataWest demonstrate that putting people first – both employees and clients – remains the foundation of sustainable success in this challenging but rewarding field.