As the key backbone of most real estate agencies, it’s little wonder that the top performing groups, as listed in Real Estate Business Top 20 Real Estate Groups ranking, all boast large rent rolls.
Richardson and Wrench secured the top ranking in the property management category in this year’s inaugural ranking.
The NSW and Queensland-based group reported 118 active property management staff, handling a total combined rent roll of 19,849, as at June 30, 2012.
While efficiency is a big part of the group’s success this is only possible when employees have clearly defined roles and responsibilities, thereby avoiding duplication of tasks, said Peter Flynn, group franchise director at Richardson & Wrench.
“It means that people who are responsible for revenue generation do just that, leaving non-revenue tasks to other support staff,” he said.
“Technology has a part to play in an efficient operation but it doesn’t help unless you have the fundamentals sorted out. It is no panacea for a lack of leadership.”
Harcourts came in second in terms of the property management ranking, with 400 property management staff handling a combined rent roll of 46,244.
Mike Green, managing director at Harcourts Group Australia, says it’s impossible to define an ideal property manager to properties under management ratio, as it depends very much on the system and structure that works best for each individual business.
“We have two predominant structures across Harcourts – one being the traditional portfolio and the other being a pod system which could be a senior property manager working with a junior property manager or a personal assistant,” he said.
“Some of our larger pods have taken it to full teams where they have accounts, inspection officers and leasing officers within that specific pod. Some of these pods could manage up to 350 - 400 properties. Our traditional portfolio would have one property manager manage between 130 and 180 properties depending on the general office support in place.”
WA-based Ausnet Real Estate Network ranked third in the property management category, reporting a rent roll of 11,500 being handled by 127 active property management staff. This result is at least partly due to a change in how principals now view property management, said Ausnet Real Estate Network CEO, Graeme Hosking.
“Principals are fast becoming much more ‘hands on’ in the management of their property management divisions,” he said.
“A number of our members are now specialising in property management, rather than simply having a property management division attached to their business, in tandem with their sales divisions.”
“As principals in general are now entering the ‘twilight’ of their careers, they have recognised that the property management division is in fact the greatest asset that they actually own.”
To read more about the ranking visit Residential Property Manager’s sister publication Real Estate Business.