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Written by Jodie Stainton
Did you know you lose roughly $165,000 / 100 properties / year when you don’t offer investment sales as part of your property management business? And where does that money go? To your competitors. I’ll just let that sink in for a moment.
During the past 10 years, small property management business owners have opened their doors all over the country and I for one, couldn’t be happier for them. I mean, why not?
It’s easier than ever before to work for yourself, building an asset that you own and control. But the one thing most of those businesses don’t yet offer, which in my view is a big, missed opportunity, is the service to sell those investment properties that naturally come up from the rent roll.
So let’s do the math. For every 100 properties, roughly eight managements will sell each year. At an average of $15,000 commission, that’s $120,000. Then there’s the asset loss from the rent roll so 8 x $5000 = $40,000.
Then the lost rent/management fees once the sales agent down the road advises your owner to vacate the tenant, so that’s another $3840. If you’ve developed ancillary income, you’re also losing the loan, the conveyancing, the connections/removals/cleaning etc.
Then there’s lost opportunity in gaining new business. A property on the market creates the opportunity to speak to more buyers, investors etc.
And of course, you’re potentially losing a great tenant. So, why is this happening?
I often hear ‘it’s because my point of difference is that I concentrate on property management only’. My argument to this is, concentrate on investors only. I’m not saying become a full time agent, I’m saying you should be the servicing all of your investor’s needs – and you can do both with Coronis.
We’ve proven over the past two years that the landlord doesn’t distinguish between a property manager and a salesperson. They view their property manager as someone they trust with their asset, who they have an existing relationship with and who they want to sell through.
One of the initiatives we’re concentrating on with our individual property management franchisees is helping them to achieve more with what they have now. $165,000 is a lot more. Nearly all of our property management franchisees have now sold properties from their own rent roll - many to other investors in their current rent roll, meaning they’ve also retained the management plus gained the commission.
I understand that for so many people who have specialised in property management for their entire careers, that the prospect of selling a property could be daunting … where do you start, do you have the right systems in place, how do you manage the contracts, trust accounting, negotiations etc. The list goes on.
With our business mentoring, weekly training, efficient systems and ability to lower overheads, we’re helping small property management business owners get more from what they have right now.
Take Ladele Jones and her partner Richard Ruhl in North Wyong for example, who joined Coronis in December with an existing rent roll of 75 properties.
“Working as an independent property management business, we simply couldn’t sell any properties from our rent roll as it was cost prohibitive, we didn’t have the right systems and we wouldn’t have been able to sustain it,” Ms Jones said.
“Instead, we were referring our clients to agents down the street and not receiving anything in return.
“But since joining Coronis and transitioning over to their systems, it’s been an absolute game changer for us. Everything is so automated, and everyone has been very helpful that I am literally saving hours per day which has enabled me to list and sell two properties in January.
“It’s freed up so much of my time that I am now speaking to my landlords more and just by having regular conversations with them, I’ve already gained new managements, so we’ve increased our revenue through growing our rent roll plus added sales revenue – it’s been a win-win.
“I wish I had known about this years ago, I would have jumped in a heartbeat because we’re not only seeing short term growth with increased revenue, but we’re also building our long-term business strategy with Jodie for future growth and expansion.”
If it’s time you stopped the line of credit to your competitors, and you want to add $165,000 to your business, Coronis is here to help you.
Click here for more information https://www.coronis.com.au/
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