Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

OPINION -- The targets that motivate PM teams

By Staff Reporter
14 August 2012 | 1 minute read

It’s time to start treating your property management team like your sales team if you want to get better results, writes Amy Sanderson, head of property management at LJ Hooker

PROPERTY MANAGEMENT is one of those areas of the business that becomes the focus of agents when sales gets tough. Today, many agency principals recognise  that they need to focus more seriously on property management for a number of reasons:
1. ASSET VALUE – property management is a saleable asset
2. FIXED COST COVERAGE – property management is almost recession-proof
3. SALES REFERRALS– according to the Macquarie Relationship Banking 2012 Residential Real Estate Benchmarking Report, 16 per cent (on average) of an agency’s sales come from property management referrals

With these points in mind, many agency principals come to me and ask me how to maximise the performance of their property management team.
My response is simple: treat your PM team as you would the sales team.

Advertisement
Advertisement

Develop the team and monitor and reward results – all of which is focused on delivering results to customers.

From a simple strategy such as this, you can create a great point of difference – a set of customer service standards, things your clients want, and things that your team can easily achieve.

A successful property management department does three things well: monitors performance, sets targets/goals, and rewards and celebrates achievements.

What do you monitor? Many more activities are required to run a smooth, successful property management business than are required for sales.

To begin with, break down activities into key areas: new business, leasing, property management and financial.

Make a list under each of these headings – for example, open homes, private appointments and follow ups would fall under the leasing heading.

A majority of this information can be obtained from your trust accounting program, and when your team is entering the appropriate data this is easy to get.

If you are unsure how to generate these reports, talk to your trust accounting provider and ask them how to go about it.

This information is important for you and your business in achieving your goals. You need to encourage your teams to enter the information, not only so you can monitor performance but also, if you need to go back and prove anything in a tribunal or court, you have the information recorded.

Use this information to help the team improve each month, and to plan for busy and quiet times within the business (for example, it is ideal for approving holidays and staffing levels). This will also allow you to recognise issues in the business before they become major and expensive problems.

For example, you might realise your business hasn’t done enough routine inspections for the past year since you have been too busy.

If you are monitoring results, you can see from month to month whether inspections have been completed and can work out why before it comes to the owner’s wanting compensation because we haven’t been there.

Also, set the team key performance indicators or targets for certain areas, giving them something to strive for.

On top of this, you need to reward things you want your property management teams to do – and vice versa for those you don’t.

Along with your guarantee of service, put your money where your mouth is.

Should any of these targets not be achieved, the dollar amount in your guarantee is applied to the retention incentive (i.e. the relevant amount is deducted).

This is a great way to win business – it’s very powerful and yet it means you still have a sensible balance with the financial side of the business.

OPINION -- The targets that motivate PM teams
default
lawyersweekly logo
Listen to other installment of the Real Estate Business Podcast
Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings
Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.