Property management is becoming increasingly important to larger agencies, so how can this benefit you?
With franchises building bigger rent rolls and predicting their property management departments will boom in coming years, networks are eager to secure great PMs for their teams. RPM spoke with two agency heads about why they’re encouraging owners to hire more PMs and how they’re nurturing the talent they have.
“One of the things that we work very closely on with those in our network is to have a diversified business, so we have a very big focus on property management. LJ Hooker would be by far the biggest managers of rental properties in Australia,” LJ Hooker CEO Grant Harrod said.
Mr Harrod estimated that LJ Hooker manages 140,000 properties throughout their network, a huge income stream that “underpins the operations of a real estate office in our network to manage the volatility of the sales cycle”.
This reliance on income from rent rolls means LJ Hooker is placing more importance on the training, development and recognition in its property management department, and encouraging owners in their network to seek out quality PMs to bolster their capital income.
LJ Hooker isn’t the only franchise keeping an eye out for talented PMs, Barry Plant is also growing its property management business.
CEO Mike McCarthy said the brand has seen their rent roll grow substantially from 40 to 100 million in eight years.
“We provide the expertise and the development, and that’s seen our property management business grow from around 14,000 properties under management to 32,000 properties today,” Mr McCarthy said.
He said the focus on property management has been beneficial for the wealth of Barry Plant franchisees, and the network is keen to continue growing in this area, encouraging their franchisees to bolster their property management departments and support their PMs.
Training and recognition are also big focuses of the network, because “when you get the right people, right basic training, right attitude and mentoring, and obviously set them up in a good environment,” that’s when success happens,” Mr McCarthy said.