Property management-only agencies are now seeing a need for sales departments, according to an industry veteran.
Blayney Potential director Fiona Blayney said many of the businesses that started out in property management had grown to a size where they realised they needed sales to increase profit.
“They’re shifting their focus off the property management-only element and then introducing sales,” she said.
“Perhaps the trend is that we’re becoming more aware that the two, even though we have attempted to split them, are intrinsically combined - be that for the service offering of the client or for the profitability of the business."
Ms Blayney said there was a tendancy for directors to move from sales to property management and vice versa, depending on the state of the market.
"I’ve been in the industry for 20 years and that’s always been the case, and I think that will forever be the case,” she said.
“That’s just a profit-centre concept. So wherever I’m making the most profit or where the easiest profit for me to make at that point in time is ... I’m going to shift my focus in that way because that’s what I need to do at that time to keep my business afloat and to keep the cash flow coming in.
“Going forward, we are still seeing an increased emergence of the property management-only business. I think those property management-only businesses are reflective of the concept then of sales now in the reverse."
Ms Blayney said while it was possible, it would be difficult for an individual to cover both the different sales and property management functions.
“In our business, I think that it’s going to create a very special business to be able to pull those things together and it’ll be a completely different look and feel to what we’re doing, especially in that upper market space where you’ve got a completely different clientele, a different quality, a different education level of individual, who is actually going to run all of those and do it really well," she said.