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Brokers can be great source of business, says finance specialist

18 December 2015 Jay Garcia

Property managers have received inside advice on another way they can build their referral network and further impress clients.

Albert Waldron, the principal of mortgage broking firm Awesome Lending Solutions, said property managers can use brokers to deepen their relationship with existing clients.

Mr Waldron told RPM that few landlords review their property’s interest rate after setting up their mortgage, which means property managers can help find them a better deal.

"The possible savings could be the difference between a landlord deciding to retain or sell the property due to financial constraints, which could prove the difference as to whether the landlord stays on the PM’s books or not," he said.

"For the property managers the relationship with the broker also provides the opportunity to access a pool of current and potential property investors, most of whom will be looking for a property manager to assist them."

Mr Waldron has also found that property managers who have relationships with brokers can secure managements that unexpectedly come on to the market.

Before moving overseas, owner occupiers often consult with their broker to find out how relocating will affect their repayment obligations. These landlords then sometimes ask the broker if they know of any good property managers who can handle their home while they’re away, he said.

According to Mr Waldon, property managers can find reputable brokers through the peak mortgage broking bodies: the Mortgage and Finance Association of Australia (MFAA) and Finance and Broker Association of Australia (FBAA).

Mr Waldon said that despite the value that property managers can gain from forming relationships with brokers, some are reluctant to do so.

"In the past we have tried to develop mutual relationships with property managers with the idea that we would help them find new listings and they would help us by referring existing landlords and current lenders to our services," he said.

"The roadblocks to this succeeding seemed to be a reluctance to upset the status quo, with current landlords and tenants in fear that they might lose the listing or a reluctance to stray away from obtaining listings via the real estate agency that they were associated with."

[Related: Rents set to escalate as investor crackdown tightens]

 

Brokers can be great source of business, says finance specialist
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