Ensure you never miss an issue of the
real estate business bulletin
PMs can ‘squeeze back the margins’ with outsourcing

PMs can ‘squeeze back the margins’ with outsourcing

by Jay Garcia 1 comments

One high-profile entrepreneur believes outsourcing can be a valuable resource, if the right amount of training and freedom are provided.

MiniMovers founder Mike O’Hagan told the Australasian Residential Property Management Conference that one way to maximise profit is to decentralise business functions to wherever in the world can create best value.

Mr O’Hagan noted the value of staff leasing, which provides companies with the staff and infrastructure to operate offshore.

“You end up with your team, your people that you've chosen, in your space, under your control and with your culture. It becomes a branch office of what you’re doing here,” he said.

The key is to transfer the vision and internal knowledge of the business rather than processes and system, according to Mr O’Hagan.

“One of the secrets is to bring them down here for training. Once you've shared that tacit knowledge, let them build systems and process and you’ll never look back,” he added.

Mr O’Hagan said there are a few large franchises in real estate that have outsourced large sales-support teams.

“They’re squeezing back the margins, having better contact and more efficient salespeople because of their background team behind them,” he said.

Functions that could be outsourced include appointment setting, sales support, report generation, marketing, personal assistance, and research and data mining, according to Mr O’Hagan.

Mr O’Hagan said he’s had a personal assistant in the Philippines for 12 years who handles everything from his bookings to his communications and social media management.

“People ask how I run so many businesses, thinking I’m really busy. Actually, I'm quite relaxed because I have someone doing it all for me,” he said.

[Related: Is outsourcing a game changer or risky business?]

Read More:

Government tipped to introduce new property management rules

Q&A: Sarena Rowley, Harcourts Campbelltown

YouTube: What if cats entered the property market?

Blog: 10 trust accounting fails that will send your landlords packing

PMs can ‘squeeze back the margins’ with outsourcing
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?