An online marketplace for property management has just been launched, and it is set to disrupt the industry and provide PMs with a new platform for their businesses.
Rent360 will allow property managers to establish or accelerate their businesses. Licensed managers will be able to build and own an asset while earning a higher income and enjoying a better work/life balance, according to the company.
“Rent360’s recommendation engine matches property investors with up to three of the best-suited property managers servicing the local area to compare fees, experience, qualifications and client reviews,” co-founder and chief operating officer Penelope Valentine said.
“The property manager appointed by the investor on the platform is the same one responsible for leasing and managing every aspect of the investment property. They can operate from home or an office on a full- or part-time basis.”
Ms Valentine, who has worked in McGrath, Ray White and LJ Hooker, has 15 years’ experience in the industry. She started Rent360 with Jared Keen, founder of Europe’s largest digital coupon company Couponstar.
Rent360’s point of difference is its lack of revenue KPIs, enabling a PM to have full control over the size of their business and the hours they work. It also allows PMs to keep 100 per cent of the management and letting fees, and own their rent roll.
According to Rent360, a PM with 120 properties on their rent roll with an average weekly rent of $550 will generate roughly $198,000 per year, minus 24 per cent, or $48,000, for running costs. This leaves $150,000, which the company says is a 90 per cent increase on a PM’s average annual salary of $80,000.
Ms Valentine listed “upfront capital, fixed overheads and starting a brand from scratch” as the biggest barriers property managers face when attempting to operate outside a franchise.
“For that reason, Rent360 has removed most of the barriers to setting up and building an independent property management business,” she said.
Rent360 charges PMs a start-up fee that includes onboarding and marketing collateral. It charges them lead generation (referral) fees when a management contract is secured. There is no fee for PMs who bring their own clients or directly source them.
The platform also charges a ‘pay as you go’ fee for the software and service subscription costs.
In return, PMs receive practical training, a ‘buddy’ system with other independent PMs, networking options, knowledge sharing and access to industry-leading mentors.
“Speaking from experience, real estate agencies and franchises typically prioritise their sales divisions over property management. Staff within property management teams are often under-resourced, overworked, underpaid and undervalued,” Ms Valentine said.
“At Rent360, we are solely focused on property management, meaning there is no compromise with a sales division. There are no farming restrictions as property managers can service clients anywhere in Australia.’
Rent360 has launched with a Sydney focus initially and plans to expand nationwide.