A real estate director has said principals are overlooking the value and importance of property management and it should not continue to be viewed as the "poor cousin" of sales.
Belle Property Annandale and Balmain director Jeremy Payne said typical real estate businesses focus on sales over property management, but they have it the wrong way around.
“I believe the most important part of a real estate business is the property management side and that is why I concentrate just on property management, so I have 100 per cent involvement with the property management team,” he told Residential Property Manager's sister title, Real Estate Business.
“I believe it is obviously your equity in a business not the sales side that is the most important. You build more of a long-term relationship with an owner than a seller – that's the main difference.”
Mr Payne said property management is about long-term, consistent relationships that you have with the owners, rather than the short-term transaction, which is a sale.
“I think, financially, offices feel like they can make more money from the sales side; they don’t appreciate the full picture of a steady income from property management month on month,” he said.
“Regardless of what the sales market is doing, there is a steady income from the property management side to a certain degree.”
Mr Payne believes real estate agencies should put more time and effort into property management.
“Property managers are typically on between $70,000 and $80,000, and some real estate salespeople are on $200,000, which is a massive gap. And do they really do a different type of job? Not really,” he said.
“There is more time management skills, project management skills, relationship building in a property management role compared to a sales role."
“I think if salespeople had to do a property management role for six months they would appreciate their position in sales more,” he added.