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PM industry ‘created undercutting problem ourselves’

PM industry ‘created undercutting problem ourselves’

by Jay Garcia 0 comments

Property managers have been told to look in the mirror the next time they blame clients for being pressured on fees.

Lucas Real Estate director of property management Dylan Emmett said the battle over fees is a problem the industry created for itself.

When I see agencies discounting our services and not charging for advertising, it’s not because the clients expect it,” he told the PPM National Property Management Conference.

“It’s because agencies have decided that that’s what they’re going to do to win the business and therefore it becomes more of a trend. We’ve created this problem ourselves by discounting our fees.”

Mr Emmett also noted that any landlord deciding between his company and one that doesn’t charge for advertising is not worth pursuing.

“I’m worth what I charge and if I can’t charge that, then it’s not worth it,” he said.

Drummond Real Estate Rentals director Myra Bloomfield said property managers should stand by their fees and not waste time pursuing miserly landlords.

“If someone says they’re going with so-and-so because they’ll do it for 5 per cent, then I’ll tell them: ‘If you want it for 5 per cent then you’re mad paying the agent; you should just do it yourself because all they’re going to do is collect the rent.’ ”

Ms Bloomfield said she even challenges some landlords who negotiate on price but have a good property in her area.

“I’ll tell them, ‘Give it to me for two months where I won’t charge you anything. You’ll still pay the other fees, but let me show you what I can do in those two months for you’,” she explained.

“If you pander the hell out of those landlords, you’ll win them and you won’t lose them.”

[Related: Redefining a ‘better deal’]

 

PM industry ‘created undercutting problem ourselves’
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