A national network has been quietly boosting its rent roll in Darwin as transactions fall and offices look for new ways to increase their incomes.
Raine & Horne Darwin amalgamated the rent roll of a competitor and increased its property management division by 30 per cent.
“We now have 1,500 property managements, which makes us one of the biggest players in Darwin’s property management sector,” Raine & Horne Darwin general manager Glenn Grantham said.
While investors are returning to the Darwin market, transactions are down and home owners are staying in one property for longer across Australia.
Darwin has had a notoriously volatile market for some time and a strong rent roll has been recognised by Raine & Horne as a way to buffer its business.
“We recognised many years ago that property management provides the business with cash flow. This strategy kept us afloat when the sales market plateaued over the past couple of years,” Mr Grantham said.
“We deliberately keep our rent rolls at levels that are effective for our property managers to administer. We provide each property manager with an assistant. There is a full-time leasing clerk, a business development manager, a team leader and a caretaker,” Mr Grantham said.
When building your property management department or combining a competitor’s rent roll with yours, it’s important to ensure a high level of administration and standards have been established and is maintained to retain tenants and avoid disputes.
Raine & Horne Darwin will be continuing to grow its rent roll as investors seek opportunities in the Northern Territory.