Property Management is an integral department of any Real Estate agency. It provides cashflow, value and equity to the business. It’s important however to maintain a minimum standard in regard to management fees when signing up new managements.
The costs of operating your business are going up and no more so than in Property Management. Property Manager wages are increasing, petrol is rising, service delivery and the recording information of clients creating more expense, rents are up, insurance going through the roof and the list goes on.
Yet, we are reducing our fees!!
By reducing management fees you are quickly diminishing the sale value of your rent roll. Low fees also attract the wrong landlord, in turn likely attracting the wrong tenant.
Most importantly, low fees seriously affect cashflow and ultimately profit.
This also includes extra fees. For the first time, recently I saw a rent roll available for sale where not even Lett Fees were being charged. This had a serious affect on its eventual sale price as buyers were turned off by the loss of significant, vital income.
Charging ongoing fees such as Lett fees, Admin fees, re-lett fees, advertising and tribunal costs can make an enormous difference to your bottom line. It may just be a case of improving the skills to ask for this income that will make the difference.
There’s lots of ways to improve those skills available. Social media shares a lot of information, on-line training is often available just by using Google, there are a host of trainers and Franchise support people and there are seminars and conferences available at most times throughout the year covering this topic.
Contact us anytime to discuss your rent roll on 3266 4242 or email email@example.com