As the market shifts and competition for clients intensifies, successful agencies are those that foster collaboration between sales and property management to create a steady stream of income.
Amid an investor slowdown, the golden opportunity for agencies will be fostering collaboration between sales and property management divisions to create an ongoing pipeline of referrals.
LJ Hooker head of property management, Australia and New Zealand, Cathie Crampton, said the benefit was two-fold, with property management teams identifying future sale opportunities, while agents can try to help feed recent buyers into rent rolls.
According to the National Australia Bank (NAB) The Performance Era 2026 report, property management and sales were considered nearly on par as presenting the best opportunities, at 64 and 68 per cent, respectively.
NAB Professional Services Banking Executive, Donna Kosiek, said the findings showed the emphasis placed on building diversified income streams and reducing reliance on transaction-based revenue.
“Working alongside real estate businesses, we’re seeing agency leaders think beyond the next sale,” she said.
Divisions in isolation
Crampton said many agencies failed to foster a strong relationship between the two divisions, missing a golden opportunity to generate a seamless pipeline of business.
“If the business owner treats it as one business unit, in other words, ‘we just have different responsibilities’, you’ll find that the camaraderie is culturally built as well,” she told REB.
“You don’t isolate the divisions, whether that be by activity or even quite frankly, seating. Where you can, create a communal sort of engagement.”
To bridge the gap, Crampton said sales and property management needed a client-first mindset and to work together for the landlord’s benefit, which would naturally allow them to work more closely.
“It shifts the dynamic and the modus operandi between those parts of the business, and that philosophy alone creates the style of connection that everybody is seeking.”
Communication is key
Crampton said creating a two-way income pipeline began with strong communication between the departments.
She said property managers should keep agents informed of any major movements in the tenancy so they were always up to date on whether there could be a prospective seller.
“Whether there be a win, whether there be a problem, or perhaps the tenants moving out, you keep them across all of that.”
“You could be verbal about it, you can just send them a quick email, keep it light, but keep them across that they like to be informed.”
In return, Crampton said agents should pass along essential information to property managers about new buyers, or prospective buyers, and their intentions for the property.
“Are they looking to hold it for a long period of time? Are there any changes that they’d like to make to the property?”
Make referrals early
When referring buyers to their agency’s property management department, Crampton said agents should advertise the services as early in the sales process as possible.
She said this can include pamphlets in sales packs provided to prospective buyers by agents, or information in digital listing kits about rental appraisal services and potential future rental opportunities.
“At the very point of viewing, you are introducing your property management team, and/or person.”
“Then, if the property is at the very point of contract, introduce the conversation again, particularly if the sales agent has identified that they’re planning to rent the property out.”
Financial motivation
To foster ongoing collaboration, Crampton said it was important for both divisions to recognise the value of the relationship, particularly for agents who were often financially motivated.
She said agents should treat the clients they refer to property managers as future sales opportunities that they were “land banking” for later.
“It might generate an average commission of $15,000, and I regularly would communicate to the sales business this quarter that ‘you have made 145,000 in GCI’ from referrals,” she said.
“So you can deliver to them the value of what you provide so that they keep engaged with that relationship as well.”
Kosiek said that, due to recent tax changes, investors were choosing to exit the market or rethink their property portfolios, affecting rent rolls and forcing agency leaders to pay close attention to changing market dynamics.
“Increased competition for sales and property management business may emerge as agencies seek to offset any slowdown in investor activity.”
As a result, rather than pursuing growth at any cost, she said many businesses were focusing on strengthening operational resilience.
“Agencies are investing in better systems, improved processes and productivity enhancements to position themselves for a range of market scenarios, while ensuring they continue delivering strong outcomes for clients.”
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