Property management-only offices are missing out on a surge of investors selling their properties, according to one industry stakeholder.
According to the latest Macquarie Bank Residential Real Estate Benchmarking Report, almost one in four sales in NSW and the ACT are generated from rent rolls.
A number of years ago, Bob Walters, principal at True Property and director of the Leading Property Managers of Australia (LPMA), noticed this trend and realised he was missing out.
“When we started, we started it as a pure property management business. Even though at that time we had referral relationships with a couple of sales agencies, we would still suffer drainage from our rent roll through clients being approached and hearing ‘it’s a great market – why not sell?’” he explained.
According to Mr Walters, that’s when he decided that if you can’t beat them, join them.
“You never pick up 100 per cent of your landlord clients who want to sell; sometimes they originally bought it from someone else,” he said.
Disgruntled by his former employer, he joined True Property to head up the sales department, taking with him his eldest son and award-winning agent Braden Walters.
While not every principal is related to a Real Estate Institute of New South Wales (REINSW) Salesperson of the Year, Mr Walters believes in today’s market, pure property management companies are finding it tough without sales.
“I commonly hear form LPMA members that they’re struggling to get decent organic growth of their rent roll because their clients are selling up," he said.
“A lot of investors are deciding to liquidate their assets, they’ve had great capital growth and they’re getting a good return on their investment.
“But that unfortunately means a lot of property management companies are starting to suffer.”