Building a property management focused business is becoming more popular, with business owners seeing the asset value of their rent roll as a priority. I work with many companies that are now ploughing resources into their property management business to offer their clients a unique property management service. Focusing on your property management business doesn’t mean taking the foot of your sales business, just realigning your sales team to treat the rent roll as a unique sales and growth marketplace.
Focusing on your property management business doesn’t mean taking the foot of your sales business
Up to 10% of landlords are considering selling in the next 12 months. 30% of your clients, landlords and renters, are considering buying in the next 12 months. While the figures themselves are no red flag, combine them, and you have a supply and demand issue inside your rent roll. You have more people wanting to buy than you have properties to sell. How do you leverage your sales team to take advantage of this unique opportunity?
Firstly, you know what types of properties investors are looking for when making purchasing decisions on their next investment. It is usually a property with sound returns, low maintenance and reliable tenants. You also have a pool of properties that match this description. The sensible thing to do would be to package up these ‘on market’ properties and market them to the 30% of your clients looking to buy a property. You retain the sales commission and, most importantly, keep the property as an income-generating asset for the business.
Secondly, you currently have an undersupply of properties in your new unique marketplace. 20% of your clients are still looking to buy an investment property. Your salespeople now become your buyer’s advocate or buyer's agent. Their role now is to seek out other properties outside of your business for your clients. This promotes sales revenue for the business and also promotes growth for the rent roll.
You currently have an undersupply of properties in your new unique marketplace
As a property management focused business, don’t completely wind back your sales or brokerage arm. The internal sales process is protecting your business against attrition and promoting growth. As a mixed sales and property management business, this strategy is outside the norm of what most people are doing today. I challenge you to look outside your traditional sales cycle and review your own rent roll for leads, sales and new business.