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PM industry has massive untapped opportunity

PM industry has massive untapped opportunity

by Jay Garcia 1 comments

There is a mass of fresh business just waiting to be won, with more than one in four landlords managing their own property.

According to the most recent Australian Bureau of Statistics data, the share of self-managing landlords decreased from 39.9 per cent in 1996 to 26.2 per cent in 2011.

Wagga Property Management director Dave Skow says he regularly tries to convert self-managing landlords by contacting them through portals like Gumtree and Facebook.

“As soon as we see them advertise, I make written contact either with an introductory email or Facebook message, which says who I am, what we do and whether they’ve considered a few things,” Mr Skow told RPM.

Wagga Property Management has a marketing flyer that discusses issues such as legislation, identity verification and maintenance, which forces self-managing landlords to consider the risks they run by not using a property manager.

“That’s what we do to convince them that it’s in their best interest to engage an agent,” Mr Skow said.

LJ Hooker Parramatta property investment manager Justin Spencer said property managers need to make landlords realise that the peace of mind they get from using a property manager far outweighs any cost-saving from doing without a professional.

Mr Spencer said his company has found success by contacting owners through private rental listings and presenting themselves as the right people to manage their property.

“Once the opportunity has been created, a good agent who understands what it takes to manage a property successfully can convince almost anyone to appoint them,” he said.

Advantage Property Consulting’s senior property consultant Brant Williams noted that property managers need to educate landlords and demonstrate value if they want to decrease the number of self-managed properties.

“If people are looking for a mortgage then they see a mortgage broker, so people looking to own a rental property should see a property manager,” Mr Williams said.

[Related: 14 questions to ask landlords tempted to DIY]

 

PM industry has massive untapped opportunity
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