Competition is heating up between rival offices as more and more principals begin to see the importance of securing new business and growing their rent roll.
According to Shaun Bassett, head of real estate for Macquarie Bank Limited’s Macquarie Relationship Banking Division, there is a healthy dose of competition amongst property management offices.
“There is an increasing awareness, appreciation and understanding on the part of principals around the value of property management to an agency and the contracted recurring cashflow is just one of the benefits,” he told Residential Property Manager.
Accordingly, most businesses in the market are focusing more heavily in property management to drive growth. Doing this by the employment of BDMs, incentivising referrals within their businesses or setting KPIs around ‘new managements’ expectations.
“This is leading to an increase in the level of competition within the market – not only for new managements, but agencies are having to increasingly be aware that their investors are receiving approaches,” he explains.
“It is imperative in the face of this that a business has, firstly, a response to the increased level of competition and secondly, a set goals around achieving their own growth aspirations.
“Providing some form of sales training for property management staff can serve to aid in both protecting the existing managements and winning new ones.
“Are your staff receiving basic sales training around seeking referrals, handling objections, articulating the agency’s service proposition?
“Being able to articulate the service proposition is as important in winning new managements as it is in explaining the property management commission rate charged and why discounts can’t apply.”