No percentage fees, no worries: The strategy behind a 400-property rent roll 

On The Property Management Excellence (PMX) podcast, Bradbury spoke with REB director Alex Whitlock about her tactics for growing her rent roll to 400-plus properties, including a flat-fee model.

“We could be a business that gets to a thousand properties. There’s no stopping that if it grows in the same way it’s growing now,” she said.

One unique strategy Bradbury implemented was a flat-fee model, a shift away from percentage-based fees in a bid for long-term profitability.

She said the model meant all investors paid a fixed amount per property rather than a percentage of rent, allowing the business to operate sustainably.

“We went, okay, let’s create a budget around this – what do we need to be achieving per property to make sure it’s realistic for the business to continue to grow, be profitable?”

“It doesn’t matter if you’re $400 a week or you’re $1,000 dollars a week. We have properties on both ends, so it is very attractive for someone when their property is $800 a thousand dollars a week.”

Bradbury said while she sometimes lost business due to her unwillingness to negotiate, the model meant she didn’t accept many low-end properties, and generated at least $2,000 per year.

In contrast, she said she often saw agents accepting large portfolios at just four or five per cent of the weekly rent, usually requiring heavy maintenance and wasting more time.

“The income that they’re generating is sometimes not even $1,500 a year. Which is scary, so scary when it comes to your bottom line,” she said.

In addition to the flat-fee model, Bradbury invested in artificial intelligence (AI) and technological processes to boost efficiency, including software such as Managed, which eliminated the hassle of managing trust accounts.

“It was the ability to be able to have a software program that was available where I didn’t have to stress or worry about a trust account, as someone who is not excited about numbers,” she said.

She also said the platform added value to investors’ experiences by providing access to rental payments sooner than other property management businesses in her area.

“I did that from zero properties through to the 400 plus that we have today. It is a roller coaster ride of great enjoyment, great highs, sometimes lows, but you just get the enjoyment that you keep going.”

While all the strategies have borne fruit, Bradbury said the success wouldn’t have been possible without a supportive team and dependable office structure, allowing her to focus on growth.

With each hire, Bradbury said the company was growing further, with her latest leasing agent bringing the agency from two or three rental listings per week to nine or 10.

“I’m glad that she slotted into that space, because how I was managing before was working for just me, but I could not manage that level of property coming in, and inquiry, with what we’re seeing now.”

As the industry continues to evolve, Bradbury encouraged property managers to keep up to date with new regulations so they can continue to deliver on tenant and landlord expectations.

She said the rules had drastically changed in the last couple of decades, as there was now more clarity about who would pay for and organise repairs, and tend to other matters of the property.

“Sometimes there’s more frustration for landlords because they feel the tenants’ rights are too far gone one way or vice versa.”

“Tenant expectations around maintenance have certainly increased, but also what we need to do to meet minimal housing standard levels now, no matter which area of the country that you’re in,” she concluded.

Listen to the full episode here.