Property management is fast becoming the main focus of a real estate business, an award winning real estate professional has said.
“Although most real estate businesses in Australia begin as a sales business with a property management department attached, I feel our office, like an increasing number of others, have now evolved to become property management businesses with a sales department in support – a complete reversal of the traditional paradigm,” Michael O’Sullivan, managing director of Prudential Real Estate, told Real Estate Business.
Mr O'Sullivan, who was the recipient of the Australasian Real Estate Agency Best Practice Award in 2010, currently operates four offices in Sydney’s south-west, and Prudential Real Estate manages a portfolio of rental properties with a value in excess of $900 million.
“They say four out of five businesses close within five years of commencement," he said. "I was always determined to avoid becoming one of those statistics so we’ve built our business on creating income streams for both sales and property management that are as predictable as possible.”
“Our focus this year for our property managers is to help them see their portfolio as a small business. This will involve learning the basic concepts of small business management which, we hope will assist them to align their business goals with that our company.”
Mr O’Sullivan will be a panelist at the forthcoming Leading Property Managers of Australia (LMPA) 2012 conference on Queensland's Gold Coast. He will be a part of a three-person panel discussing fast-growth strategies for property management businesses.
“Over the past two decades our growth has come from a mixture of organic growth as well as multiple acquisitions of local rent rolls and my comments will centre on our experience in both these areas,” he said.
“We have had varied success in both these areas and I hope my experiences, both good and not so great, will help others who may be considering the rapid growth of their rent roll business in the future.”
The LPMA 2012 Annual Forum will be held at Jupiter's Hotel and Casino on the Gold Coast from Thursday 26 April – Friday 27 April 2012, and is open to all industry practitioners across Australia and New Zealand.