Real estate agents reveal dark underbelly of industry

They may earn hundreds of thousands of dollars a month but success is taking a toll on Australia’s top real estate agents.

It’s a world of luxury cars, glamorous suits and $100,000 watches but the real estate industry has a tragic underbelly – a high suicide rate, self-harm and severe mental health problems.

Four in 10 agents have revealed they’re relying on cocaine and alcohol to keep their confidence up and many have a trail of broken marriages.

Often they are massively in debt to pay for the expensive cars and clothes they need to project an image of success.

“The people making the most amount of money in our industry are probably like three marriages in, have a coke (cocaine) habit, and an addiction with regards to success that gives you that adrenaline rush,” auctioneer Andy Reid, who is head trainer at Century 21 and runs the agency Better Homes and Gardens, said.

“I’ve already heard this week about a director of a organisation who has had to step back from being a head of a franchise because they’ve got big problems with coke.

Andy Reid auctioneer and real estate sales agent turned Head Trainer of Century 21 and now runs Better Homes and Gardens real estate agency. Picture: Supplied

“Probably I’d say maybe 40-50 per cent would have some sort of addiction problem, whether it’s drugs or alcohol,” Mr Reid said.

There is no suggestion Mr Reid has taken drugs himself.

Real estate agent manager Daniel Hayes said surging property prices in the past two years meant 26-year-olds in the industry were earning $200,000 a month, driving Porsches and doing cocaine to celebrate their successes.

“It’s ridiculous. How can you not think you’re God?” he said.

“But the reality is you’re about to smash into a brick wall.”

Mr Read said agents had to create an “air of almost invincibility” because if they showed any degree of vulnerability a homeowner may not trust them with their house.

“That’s a whole load of bravado, that creates a whole load of anxiety when it doesn’t work out,” he said.

He said the pressure brought him close to taking his life one day.

“Your brain feels that it needs to take you away from the world.”

Auctioneer Danny Hayes. Picture: Mike Dugdale

What brought him back from the brink was the thought of his daughter having to grow up without her dad.

“It’s not really being a good dad if you decide to exit yourself from life, right?” he said.

Property management is the less glamorous side of the business but the pressures are immense.

Agents must balance tenants complaining about broken facilities or who don’t pay their rent with landlords who don’t want to spend money to bring the accommodation up to standard.

Sydney property manager Ellen Bathgate said she had been physically attacked by an angry tenant, and had to deal with people who punched holes in walls and burned the floorboards of rental properties.

She has been physically threatened by large men and some people working in the industry had received text messages “asking them to kill themselves”.

Ellen Bathgate Former real estate agent and property manager who has worked in the industry since she was 18 and suffered mental health challenges as a result of the stresses and toxic culture of the industry. Picture: supplied

Property manager Melissa Hickson said the job was super stressful because “you’re literally solving people’s problems”.

“People are stressed if they’ve got no hot water or they’re stressed if they don’t get their rent or they can’t pay their rent. You’re dealing with people at high anxiety level,” she said.

“Some agencies sign up everything and anything and those kinds of clients, the high end owners that want everything done for free or they want to have different expectations about where they should be that doesn’t align with state regulations,” she said.

An astounding 30 per cent of people have quit the industry as a result of increased pressure during Covid.

Melissa Hickson has 18 years of experience as a property manager and is now director of Prime Residential Property Management. Picture: Wayne Taylor

And often property managers are handling 200 tenants and 200 owners, working 11 hour days and weekends for a salary as low as between $50,000 a year.

To tackle the mental health problem real estate industry players recently established a mental health app for people working in the industry called Real Care.

Painter and decorator Craig Turton has set up a men’s mental health group called 100 words to help men learn how to have a real conversation with their mates about their mental health.

Craig Turton a house painter and founder of 100 Words, a men's mental health charity. Picture: Supplied

They are encouraged to ask their mates to rate their day out of ten and explain why they give it that score.

“This starts a genuine conversation. They can’t just say “good” and move on,” Mr Turton said.

They are also encouraged to ask their mates what a ten out of ten day would look like for them, this means they have to think about what it is that makes them happy.

Melbourne real estate agent Zed Nasheet. Picture: Mark Stewart

Millionaire Melbourne real estate agent Zed Nasheet understands the need for successful agents to keep up appearances.

As his company Zed Real Estate’s revenue spiked tenfold during the lockdowns, Mr Nasheet said supporting his team became top priority to prevent the growing trend of recreational drug use and alcohol abuse from spiking within his company.

“It’s the big sharks, big leaders are responsible if staff are struggling to stay afloat because they’re not providing the tools to support them,” he said.

“It really comes down to having a good leader heading up your team during a pandemic or during a lockdown because everyone has things going on in their lives.

“Sometimes as agents, we forget that we don’t live to work, we actually work to live.”

Mr Nasheet said he struck a balance between the fast-paced world of closing sales for multimillion-dollar mansions and his personal life by focusing on his physical health.

“Fitness has been a great thing for me. I take out all my frustration because I need to look good,” he said.

Mr Nasheet also worked to boost company morale as they floated in and out of lockdowns to curb potential stressors and pressure to continue landing high-stake deals.

“We started online gaming with each other by playing Counter Strike. I made it a must for all of us to actually jump on every single night to just chat and play. It was crucial to just stay connected and talk to each other.”

Beyond Blue’s lead clinical adviser Dr Grant Blashki’s top tips on managing stress if you are a real estate agent:

WARNING SIGNS STRESS IS BECOMING A MENTAL HEALTH CONDITION

* Recurrent thoughts that are very negative, particularly things like self-criticism, self-blame. For example you don’t manage to sell your houses one weekend and you read into that, that you failed when multiple factors that could have led to that – things on the market, interest rates, preparation of the house.

*using alcohol to try and manage the stress.

*Getting into conflict

*Not switching off from work or being away from your phone

*Withdrawing from social activities or relationships

SIMPLE STEPS YOU CAN TAKE TO IMPROVE YOUR MENTAL HEALTH

*Get enough sleep

*Plug your phone in to charge outside the bedroom overnight

*Don’t overdo alcohol

*Avoid drugs

*Exercise regularly

*Make connections and build relationships with people you trust.

SIMPLE STEPS EMPLOYERS CAN TAKE

*Reasonable work hours. A mentally healthy workplace should have some policies around being able to switch off and set hours about when it is reasonable for you to be on the phone and reply to emails.

*Clear job descriptions. Employers must be about what they are asking employees to deliver. Having unrealistic expectations about what young employees do is likely to see them burnout and is the best way to cause them to be stressed.

BEYOND BLUE FREE SERVICE NEW ACCESS SMALL BUSINESS OWNERS

Beyond Blue offers six free mental health coaching sessions for owners of small businesses,

including real estate agents.

People in small business that understand the real pressures business people are under are specially trained to be mental health coaches.

They’re not psychologists, but they provide basic problem solving and behavioural advice.

You can participate on phone or video or face-to-face where Covid allows.

Access this service by going to the beyondblue website or phoning 1300 945 301.

— with Olivia Jenkins