Ray White director Dan White explains why property management is a critical component in the success of real estate businesses.
Ray White’s 2015 Profitability Report breaks down individual offices to identify the most lucrative pockets in a real estate business. The 80-page report aims to give Ray White franchisees greater confidence when making important decisions about the profitability and development of their businesses.
The exclusive and detailed report analyses offices by state and size, highlighting the productivity of agents, principals and property management businesses in Ray White’s network of 190 stores.
Mr White told RPM property management is critical because it affects the balance sheet of a real estate business.
“In a real estate business, you obviously have your P&L and your balance sheet. The property management is always building your balance sheet side. As the financial numbers become clearer, the property management business is key for profitability. We have found it to be very profitable. The offices with strong property management businesses are a lot more profitable,” he said.
“It’s a cash flow vehicle and security value for the business over time. You get recurring sales.”
Mr White said the sales you get off your property management business are important, adding that a solid property management team also draws top talent.
“It helps attract good salespeople to your business if you have a good management book because they know that you are active in the community and have a lot of clients out in the field.”