Powered by MOMENTUM MEDIA
realestatebusiness logo
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

news image

REIV launches public campaign against Andrews’ real estate restrictions

September 18, 2020Emma Ryan

The Real Estate Institute of Victoria (REIV) has commenced a public campaign off the back of the Andrews government’s continued restrictions to real estate. ...

REB_top100agents
top 10 agents

1

Alexander Phillips

Year of Experience: 20

Support Staff: 3

Residential Properties Sold: 215

Total Value of Residential Properties Sold:

$ 522,477,791

VIEW COMPLETE REPORT

Have you experienced sexual harassment or bullying in the workplace?

Yes, I've been the victim of sexual harassment (15.8%)
Yes, I've been the victim of workplace bullying (21.1%)
No (63.2%)

Total votes: 19
The voting for this poll has ended on: April 30, 2020
TECH MARKETING SALES BETTER BUSINESS PROPERTY MANAGEMENT
agent using smartphone 3 reb Proptech to support property managers

An Australian proptech company has helped local property managers navigate the stressors felt during the COVID-19 pande ...

AshFarrugia 850x400 march2019 New feature ‘to take property matching to the ne ...

ActivePipe has launched a new feature which aims to clear the way for a near fully automated service. ...

sydney street cbd reb Prop-service provider closes strategic funding rou ...

An Australian property service and technology provider has closed a deal worth $3 million, further cementing its status ...

Openn Negotiation NZ reb Real estate platform broadens national scope

A local real estate sales platform has expanded its horizons to Australia’s easterly neighbour. ...

TP PT sept18 reb What’s Making Headlines – The week commencing ...

What’s Making Headlines is your new source for all the very latest in Australian real estate news. ...

David Holman reb REB Business Empowerment Showcase: The human eleme ...

The COVID-19 pandemic has seen many tenants and landlords face personal and financial hardship.  ...

TP PT sept7 reb What’s Making Headlines – The week commencing ...

What’s Making Headlines is your new source for all the very latest in Australian real estate news. ...

Anna Neelagama reb How the REIA is working with government through th ...

In this episode of the Secrets of the Top 100 Agents podcast, special guest Anna Neelagama joins host Phil Tarrant to di ...

TP PT sept18 reb What’s Making Headlines – The week commencing ...

What’s Making Headlines is your new source for all the very latest in Australian real estate news. ...

David Holman reb REB Business Empowerment Showcase: The human eleme ...

The COVID-19 pandemic has seen many tenants and landlords face personal and financial hardship.  ...

TP PT sept7 reb What’s Making Headlines – The week commencing ...

What’s Making Headlines is your new source for all the very latest in Australian real estate news. ...

Anna Neelagama reb How the REIA is working with government through th ...

In this episode of the Secrets of the Top 100 Agents podcast, special guest Anna Neelagama joins host Phil Tarrant to di ...

Positive Mindset in Business reb The impact of a positive mindset in the business o ...

Let’s be real: running a business or an office is stressful. Here’s a quick rundown of some insights on keeping yo ...

Cameron Black reb Lies and statistics: Has the property market actua ...

It seems like there has been a huge change of sentiment in the last month as a confluence of factors has come together t ...

short 850x400 june2019 How to get that big win

Getting a big win is more than just sales. It involves strategic planning and setting goals, according to real estate bu ...

MeganSmith 050719 cropped Ray White’s Megan Smith sells $14m property in B ...

Ray White Balmain sales dynamo Megan Smith has sold one of the most expensive houses in Australia this year, with the pr ...

home owners reb Landlords hold rates steady despite economic downt ...

Landlords have been inclined to hold rental rates steady, despite the COVID-19 pandemic seeing rising unemployment as go ...

adelaide aerial reb SA extends relief for residential and commercial t ...

The Marshall government has announced that it is extending emergency relief for residential and commercial tenants strug ...

Perth aerial new reb East coast affordability woes won’t impact WA

First home buyers struggling to crack the east coast property market are being advised to look west as Western Australia ...

Sharon Fox Slater reb 5 reasons landlords should hold on to their insura ...

COVID-19 and its social and economic fallout have had serious ramifications for many landlords, agents, tenants and ins ...

EVENTS
REBAWARDS Listready
Real Estate Business Awards 2020

The REB Awards is the benchmark of success in the Australian real estate industry. It reflects not only the business astuteness of the country’s leading real estate operators and networks..

Learn more >
FROM THE WEB
Recommended by Spike Native Network
Do you have an industry update?
rpm logo latest

Property management: You get what you pay for

18 October 2018 Thom Richards
Thom Richards

Lately, there have been some new “start-ups” in the property management space that are trying to swing investors away from traditional property management. As a result, the average fees for the industry are under pressure as some investors get seduced by the promise of lower fees.

Property management is an enormous beast. There are way too many moving parts to analyse in one article. It is also so complex that unless you have been at the coal face running a rent roll for five-plus years, you can in no way grasp the complexity or quantity of tasks that are required to ensure a property is managed in a way that maximises the return on investment for the client, keeps an agency profitable and keeps staff happy, let alone redesign and innovate on the current processes.

What investors fail to realise is the real cost of saving a few hundred a year on fees; they are drawn in by fancy calculators that let them see the supposed savings that also neglect to remind them that agency fees are tax-deductible so the true cost of that experienced property manager is significantly less than what is being shown on your agency agreement.

The cheaper alternatives

Advertisement
Advertisement

The first of the culprits are the DIY platforms that encourage investors to ditch their agent in favour of handling the day-to-day property management themselves. The control and visibility is definitely a great attraction of these platforms; however, are you prepared for the workload, responsibility and legal risk? Not to mention you forego the luxury of having a communication buffer between tenants and tradespeople — something that you will desperately miss if things turn sour.

Even if you are prepared to handle the workload, you need to consider the value of your time and the risk of something going wrong. It’s scary how often we see DIY landlords happily managing their property until a tribunal notice turns up on their doorstep and ends up costing them thousands in compensation, vacancy and property repairs.

The next step up from the DIY platforms are fixed fee or “cut-price” property managers who are encouraging investors to dump their real estate agent in favour of flat monthly fees. While service is included, consider the capacity of a property manager to drive performance if theyre spread across a thousand properties vs maybe a fifth of that, at premium service agency. The reduced fee also means there’s less to go around, so goodbye bonuses and higher salaries that are required to keep that manager incentivised.

The other main problem I have with both these new-age property management options is they are usually run by “founders” who have never run a property management business before, and when you read the About section on their websites, the motivation for starting the business is something along the lines of “My brother once rented a property and had a bad experience. There must be a better way!”

The cheap man pays twice

As an investor, I want strong returns from my property. Im not in the game for the excitement of fixing a leaking toilet. Further to this, the bulk of investors I know are time-poor and property management is not their primary skill set. Handing over what is potentially the most expensive asset someone will ever own to anyone but a professional is utter madness to me.

An experienced and motivated property manager will reduce stress, ensure efficiency and constantly chase a return for you. Whether that be through utilising competition to drive down repair costs, minimising vacancy by managing tenant relationships, providing sound advice around depreciation or via the myriad of other factors that must be considered on a daily basis — some factors most landlords are undoubtedly not even aware of.

A mistake in one of these areas can cost you a great deal more than the fee saving that fancy calculator promised, and that’s before tax advantages weigh in the equation.

Ask any experienced investor and they will tell you that a good property manager is worth their weight in gold.

So what do agents do?

There is no doubt that agencies and property managers need to pick their game up and acknowledge the demand for an increased level of service. Property managers are no longer expected to fulfil the role of a caretaker but reinvent themselves as asset managers.

In my experience, real estate agents are predominantly losing business due to their lack of adoption when it comes to technology. Running an efficient business with a focus on service has never been more important, and by reviewing your agencys approach to property management and implementing the best tech, this will ensure investors get the best of both worlds.

There is a lot that property managers do behind the scenes that landlords are never exposed to, so communication is key. As a property manager, justifying fees has never been so important and showing clients exactly what you do for them on a daily basis plus quantifying your value-add is crucial.

Property management: You get what you pay for
ThomRichards Managed 250x250 oct2018
lawyersweekly logo
Thom Richards

Thom Richards

Thom Richards is the co-founder and designer of Managed, a platform that connects property managers with landlords, tenants and tradespeople.

Thom is a former frustrated agency owner who knew there had to be a better way to manage a property management business.

FROM THE WEB
Recommended by Spike Native Network
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.