Principals and property managers must learn more about property investment strategies if they want to win more business from landlords, an industry expert believes.
“Getting educated about property investment and not being scared by words such as depreciation is vital. Without it, you could be missing out on a lot of dollars and clients,” Bradley Beer, from BMT Tax Depreciation, told Real Estate Business.
Mr Beer believes property managers need to realise their job is to do more than just manage the property - they’re managing an investment.
“Property manager’s clients are investing to make money, it’s about maximising their return.
“They are managing investments. Clients are investing in these things to make money. So we need some education around what it means.
“They need to make sure they're doing depreciation properly and to not be afraid of claims,” said Mr Beer.
Tyron Hyde, director at quantity surveying firm Washington Brown, told Real Estate Business after the launch of his company's depreciation calculator app that agents who understand how depreciation works have a huge advantage at closing deals.
“Savvy agents realise that information about tax depreciation can have an enormous impact on closing rates and sales,” he said.
The app gives depreciation data based on real property information, allowing users to calculate estimated tax deductions.
“In a market that many experts think is ripe for selling to investors, imagine the confidence your client takes from a piece of advice that could save them thousands of dollars,” the company said.
According to the Macquarie Relationship Banking 2012 Residential Real Estate Benchmarking Report, 49 per cent of agents believe that a slow investor market will significantly impact business in the next twelve months.