Who are your important clients in your property management portfolio? They are the clients that own the better buildings, several buildings locally, and or pay the larger fees for management services. Know how many of these people that you now service and understand their investment focus. (NB – you can get plenty of commercial property management client tips in our Snapshot program right here – its free)
When you know who the local property people are, you can provide exceptional services and improve your associated services at the same time (i.e. Sales, and Leasing).
It is a simple equation to work with. It pays to focus on these special people as they are the backbone of your property management business and offer the brokerage some real stability over time. Here are some ideas to identifying and working with these people.
Consider your zone and your portfolio as it exists today. Determine the property management buildings and owners that help produce 80% of your fees. Using the typical business averages in our industry, that group of high quality buildings/owners will likely be just 20% of your portfolio. That should be your VIP list in property management.
Many brokerages have other ‘small managements’ that are of little size and or small in fee generation. Over time you can remove those buildings from the property management client list. Yes, I know that they do sometimes produce sale and lease opportunities, and only you can do that assessment in client or building retention.
The point here is that you identify your VIP list and start to work on in in new and relevant ways. Consider these questions:
- How do you differentiate management and leasing services for your top clients now? You can always take a property service and make it deeper on specific things such as tenant retention planning, lease negotiations, rental planning, asset performance, plus many more things. Quality clients should get this higher level of service; particularly so if you want to keep them in a competitive market.
- Just how is this list of VIP’s growing currently? When you look at the growth of your real estate client list, and particularly that which applies to property management, how did those clients convert to your services?
- What are the fees per management (the averages) in your portfolio now? In an ideal situation, you want those fees to be improving, so you are eventually managing larger buildings at higher fees. From that point you can improve your services with a reasonable chance of client engagement.
- What is a VIP client to you? Can you set some criteria? Know what a client is and where they are located. You can be focusing in investor types, businesses, corporations and precincts. Don’t forget to work on franchise groups as they need specialist property help as well.
When you consider these things, how does your client list compare to other local agents and brokers? Always know your position in the property market and compare your client list to that of others.
Ultimately you can attract some of your competitor’s clients to move to your brokerage, if you have the advanced property management services to cover the client requirements. Focus your management team on the top clients.