July 31, 2018 | DCM Institute

The role of the village manager is both challenging and rewarding.

How challenging is reflected in the fact that for many it is a high turnover career.

In January this year we commissioned Australian Online Research (AOR) to survey the managers in villages covered in our National Resident Survey villages. 283 responded, a significant number (out of 545 invited).

From the chart above you can see 21% had been in the job for less than a year and 51% had been in the job for less than three years.

As you would know, it takes a couple of years to understand a village, its budgets, its residents, the service providers.

So this turnover is not good.

Village managers were also asked for any added comments they would like to offer. The following are some of the themes which emerged:

1. High job satisfaction

2. Dealing with unrealistic expectations of operators, residents and families:

Increased demands of compliance, regulatory and corporate reporting, taking away from needs of day-to-day job
Challenges of increasing care and support needs of residents as they age, which may exceed the intended ‘offer’ of a retirement village
Unrealistic expectations for village manager to be on call 24/7
Poor understanding of contract terms by longer-term residents
Increased pressures to do more with same budget

3. Issues with job appeal and description undervaluing the role

Complexities of the job undervalued, requiring complex set of skills
Poor pay structure
Poor job growth opportunities (e.g. promotion)

4. Insufficient staffing/support to run the village

5. Need for more authority – particularly with maintenance and approval of capital expenditures

6. Impact of bad press on the industry, perceptions and demands

7. Decline in respect by residents – no longer mutual respect, but matter of ‘we pay your wage’

Do these themes match your own?

In our travels, we meet a lot of village managers who have not experienced the new breed of manufactured homes. They are wondering what all the fuss is about.

Why are people thinking of them as a competitor to retirement villages? Aren’t the homes made in a factory and placed in a caravan park?

First up the modern ‘manufactured home park’ is now being called a ‘land lease community’.

In fact, in most states the legislation is adopting this title because it explains the contract better. (You own your home but lease the land it stands on – like a caravan).

The important thing for village managers to understand is that LLCs are doing two things.

The first is grabbing the traditional market for retirement villages, being ‘affordable housing’. Most retirement village homes are now $350,000 and more.

A new LLC home can be as low as $225,000 and older LLC homes are nearly always in the mid-$200K field or even lower.

The second is the homes are no longer always built in a factory. They can be built on site and still comply with regulations for being ‘removable’ if they can be split up and taken away.

We went to the launch of Ingenia’s Latitude One development in Port Stephens, north of Newcastle, last Saturday. See the photos.

They are big – up to 200 m². They are still reasonably affordable, ranging from around $350,000 to $550,000. And they are built on a slab – not raised on posts.

LLCs target a younger market than retirement villages, emphasising lifestyle. They have big community and support facilities. And most don’t have a DMF.

For operators, the resident owns her own home and are responsible for its maintenance. As a village manager, you will recognise this benefit.

It is still early days for LLCs. There are about 300 serious locations across the country with about 20 operators, compared to 2,000 retirement villages and 600+ operators.

But as a village manager, you will hear more about them, especially if you are in a regional location or on the outer Metro fringe.