Outsourcing will inevitably become more mainstream in the property management industry, a leading property management expert has said.
Network performance manager at LJ Hooker Amy Sanderson told Residential Property Manager that currently a very small minority of agents were utilising outsourcing. As agencies sought to grow their business, outsourcing would increasingly need to be considered.
“I think, as early adapters do it others will see that it hasn't crippled their businesses and they've actually seen those businesses have success with it and develop to another level - because it really allows property managers to concentrate on the relationship side of the business,” she said.
“I definitely see it as a potential answer to building economies of scale into a business, and I certainly see it as an answer to helping remove some of the liabilities from property managers.
“If I look back at real estate 20 years ago, we didn't have the same level of drama that we do now, and I put that down to the fact we spoke to people. In this day and age, we don't talk to anyone; we email them and i see lots of issues coming up from that, so where I see the beauty of outsourcing is that it actually frees up some of our time to get on and actually communicate with our clients better."
However, Ms Sanderson said the handbrake for agencies was the ability and willingness to let go of some of the control.
Speaking to Residential Property Manager last year, CEO of trades service provider Tradebusters Laorence Nohra said losing control was a common misconception surrounding outsourcing.
“Good outsourcing is about how you gain control,” she said. “It’s not about ‘Hey, let’s just outsource everything and leave it with the service provider and not have anything to do with it'.
“You may only be outsourcing parts of a process, but the property manager still has a role in overseeing the process, being involved in that process and recognising that in certain aspects of it where it makes sense and where it adds value, a service provider is involved.”