Neglecting your rent roll is akin to neglecting your reputation and brand, said one industry leader.
According to managing director of Toop&Toop Real Estate, Anthony Toop, the biggest mistake principals make is to think that the rental business is less important than sales.
“The consequence of this is the potential to neglect the two largest assets a business has; its reliable cash flow and its reputation and brand,” Mr Toop wrote in the December issue of Residential Property Manager.
“The lack of resources and attention allocated for the rental team can also lead to some bad events, such as legal issues and lost business.
“The excitement and positivity of sales should never be confused with the benefits of process, consistency and the financial reliability of a well run rental division.”
However, Mr Toop admits he has been guilty of overlooking his rent roll in the past.
“Many of us let our rental businesses run along on autopilot. They may seem to be running well and then all of a sudden they breakdown,” he said.
“This has happened to me twice now in 30 years and let me tell you, it’s not nice when it happens.”
But according to Mr Toop there is a way back from the brink, however it takes strong leadership and a commitment to creating a strong rent roll.
“To break the cycle took new and strong leadership, and great courage on our part.
"In our case, the financial cost was high as we valued the Toop&Toop Brand so much that we threw money and resources at issues. Yet, in hindsight, we were slow to deal with the core problems,” he admitted.
“We have started, and continue, to create an environment of equality between sales and rentals, injecting technology, resources and systems that were enjoyed by sales into the rental side of the same business.”