Melbourne-based group Metro Property Management has launched a new sales business to enhance its current client offering.
Director Leah Calnan said Metro Property Sales was established to benefit clients if they wanted to sell down the track.
“The intention was mainly that we would lose owners to local real estate offices because they were of the opinion that it was better to sell with a local agent, although they had a relationship with us," she told Residential Property Manager.
Ms Calnan said it was a common for a landlord to be encouraged by a sales agent to end the tenancy if they wanted to sell their property.
“With a business like ours, they have the luxury that they already have that ongoing relationship with their property manager, the tenant knows the property manager, and it’s an easy transfer for the tenant to then be dealing with a sales agent that falls under the same brand," she said.
According to Ms Calnan, it is important for agencies to diversify to stay in business.
“There is a lot of lost business that walks out your door each day, particularly as rent rolls get older and clients’ circumstances change," she said.
Her comments echo that of RE/MAX Australia owner and managing director Michael Davoren, who recently told Residential Property Manager's sister publication Real Estate Business that real estate agents needed to diversify into other financial and property related services.
“While every state is different, I can safely say there is mounting pressure being placed upon real estate commissions,” he said. “We have already seen a lot of discounting businesses come to the fore, while many haven’t lasted, I don’t think we have seen the end of them.”
The launch of Metro Property Management’s new sales business comes as it continues its growth in Melbourne.
The agency has just purchased another rent roll, which will bring their total to 2,000 properties across 192 suburbs.
Ms Calnan said the business would continue its plan to expand in Melbourne, as there are many rent rolls available for sale.