Many commercial agency principals and brokers will know that their rent roll or property management portfolio is a critical part of their business. The income stability and commission opportunities that come from a rental and property management portfolio are real and valuable. Over time the size and type of portfolio will give you better leasing fees, and potentially some sales listings and fees.
So the key strategy here is the portfolio should be expanded at every opportunity. That being said, be very careful not to make these all too common mistakes:
- Setting management fees too low for the type and amount of work required.
- Appointing a property manager on a property without them having sufficient skills or knowledge.
- Underestimating the work required with managing the property for the client.
- Loading the property manager with too many properties. This then has an impact on their ability to do their work
- Failing to understand or respect the targets and controls of the client in property performance and daily management.
- Missing or failing to capture all the property detail in the property handover.
- Overlooking tenant or lease requirements in managing the property.
- Missing critical dates that relate to tenants, leases, and income.
- Not having a specialised property management system that can control the income and expenditure professionally and accurately for the client.
In a retail, office, or industrial property, the management process is quite special. When it is fully matched to the client and the property, the ongoing opportunities to the agency are quite high. Make sure that you avoid the mistakes that I have just mentioned.
To grow a rent roll or management portfolio you should have some initiatives in place. These ideas will help you:
- Every lease or sale situation will be a chance to submit a property management proposal to the client. Most management appointments occur as a result of either of those two activities.
- Vacancies are a frustration to many property landlords in both income decline and loss of outgoings. You can offer solutions to fix the vacancy and hence position yourself for the management.
- Self-managed properties are a definite opportunity. Whilst landlords may want to save fees in undertaking the management work themselves, they will not usually have the internal structures and systems to make things work. You will have better systems and can sell your services to landlords that self-manage.
- Offer tenant mix advice and tenant retention plans as part of providing services to local landlords.
All of these simple issues will allow you to build your property management rent roll and client base.