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rent roll values are rising

Rent Roll Values are Rising!!

Rent Roll Values are Rising!!

In last month’s newsletter I wrote an article discussing the increase of the rent roll multiplier and improved value of the property management business. Thank you to those who responded providing feedback and thanking me for the information, I had the largest response ever to an article. This would suggest it is a subject of significant importance to most Principals.

The great news is, over the past month we have still seen further signs of recovery. Two Gold Coast rent rolls have gone under offer within just a few weeks with multiple offers on both in a market which was previously fairly tough. We continue to receive excellent buyer enquiry and feel more confident of achieving excellent value for quality rent rolls. Read more

Rent Roll Sales Qld merger

Rent Roll Sales Qld merger

Real Estate Agency Sales and Rent Roll Sales Qld has announced the merger of both companies and will operate under the Real Estate Agency Sales brand.rent rolls for sale brisbane

Kevin Hockey, Company Director of Real Estate Agency Sales, is excited about the merger of the 2 brands saying “The opportunity for twice the exposure, access to both client databases and the benefit from the knowledge and experience of both Real Estate Brokers is undoubtedly going to be of real value to all our clients”

Graeme Bagshaw, Founder and General Manager of Rent Roll Sales Qld, believes it makes a perfect fit. “Kevin and I have been friends for years now and we know how each operates. We both hold Ethics, Trust and Great Service as essential to our businesses and I see this as a natural transition to servicing the Read more

Rent Roll values are rising

Rent Roll values are rising

Rent roll values are rising again and I believe the signals are good for continued growth. Supply has slowed, demand has increased, the real estate market is improving and the oversupply of real estate agencies has now corrected itself to a certain degree.

Rent roll multipliers certainly took a hit over the past 18 months with some regions fairing worse than others. Read more

Principals – Stop Training

Principals – Stop Training

Yes, that’s right – Stop your current training. Stop learning how to make more sales and attending Property Management seminars and start learning more about running your business. Real Estate industry training seems to be more heavily focused on Sales skills like negotiating, listing presentations, achieving a higher fee or Property Management skills. As a business owner, you need to be a great CEO.

Thanks for thinking of us but Real Estate Agency Sales will be ok, we will still make sales. We just don’t want to see you and your business in severe financial hardship. We most certainly don’t want to talk to your bank or the receivers that have been appointed. Sadly, I’m receiving too many of those phone calls.

This recent article http://tinyurl.com/74dycn6 explains 2700 businesses went broke in 3 months prior to Christmas. In a different article from external administrator reports supplied to the Australian Securities and Investments Commission, it says “too much failure is self-inflicted”.

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Borrowing against your Rent Roll

Borrowing against your Rent Roll

This is the year of opportunity – for those willing to grasp it. American Entrepreneur Warren Buffet said, Be fearful when others are greedy, and be greedy when others are fearful. Seems like the world is pretty fearful, so is this our chance to be greedy?
To take advantage of the potential opportunities which may arise for you and your business, you may need help funding your progress. This is where your rent roll once again becomes such an invaluable ally to your business. Apart from generating income, assisting in increasing market share, building your database and providing listing leads to your sales department, you may also borrow against your rent roll secured solely against your portfolio.

Like a snowball racing down a hill gathering enormous momentum and strength, this amazing asset called Property Management can self stimulate the growth of your business, if you allow it!

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Assignment Clause and your Business

Assignment Clause and your Business

The Queensland Government and Office of Fair Trading, due to much lobbying from the Real Estate Industry, provided real estate agents the option to “Assign” an appointment by Landlord or Vendor with an agent, to a buyer of the business or rent roll.

This action was taken due to the complex nature and regular transactions which are unique to our industry.

Prepare now for the future. Ensure all Form 22a’s, and especially your Appointments to Act with your Landlords (Form 20a), are correctly initialled by the homeowner as accepting the assignment clause within the agreement.

The eventual sale one day of your rent roll is highly likely to include a provision called a “retention clause” whereby any landlords who choose not to transfer the management to the buyer will not be paid for by the purchaser. To limit any potential loss during this period a fully signed listing appointment with the assignment clause completed will be a definite advantage.

Therefore, as the Principal and Business owner, there is significant advantage at the time of sale to ensure the assignment clause is completed. Ensure your team understand the requirements under the provision of the legislation, complete the assignment clause and have the necessary skills to handle any objections a potential landlord or seller may have.

 

Written by Kevin Hockey

 

Mobile phones and Real Estate

Mobile phones and Real Estate

Just recently I have heard the news of a successful Brisbane agency Principal having been diagnosed and operated on for a Brain Tumor. The prognosis isn’t good from all accounts and feedback he has received from the medical profession points toward the use of his mobile phone potentially having played a part in this dreadful disease.

Due to my own experiences with the effects of mobile phones which include headaches, ear aches, extreme heat plus sore jaws and teeth like a toothache, I have long held the belief mobile phones could easily be causing health issues we are yet unaware of. For me, it began immediately when I changed from analogue to digital.

Earlier this year 60 minutes ran a programme highlighting the potential dangers of mobile phone use and an extended interview with Dr Charlie Teo, an Australian neurosurgeon and co-author of a study on mobile phones and their effects.

Dr Teo said “…if the question is do I believe that mobile phones can cause brain cancer, the answer is yes I do.” In talking with Liam Bartlett from 60 minutes he went on to say “That’s a huge fear. I mean, what if we’re right? Then if we’re right we’re going to see a huge increase in brain tumours and brain cancer in the next decade or so. It’s going to be frightening. And guess what Liam, we’re already frightened by what were seeing.”

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Does a Real Estate Agency sales business hold any value?

What is it with us as real estate professionals that we appear hell bent on undermining ourselves and place little to no value on what we do?

Most real estate agents I know work really hard. Most work 6-7 days per week, are genuine, fair and honest and entered real estate because they love helping people.

We work long hours and often feel like we are a psychologist, marriage counsellor, negotiator, accountant, solicitor, town planer, taxi driver and provide a solution to world peace all at the same time. Yet we seem destined to work long hours whilst sacrificing family and personal commitments without a fair expectation of financial reward at the end.

It’s a common held belief within our industry that a real estate sales business does not hold any value or goodwill and it is next to worthless. I am unsure why we would want to encourage this line of thinking as it is not advantageous to ourselves when it comes time to sell.

A general business, whether it is a takeaway store, newsagency or hairdressing salon etc, all hold a sales value. Commonly it will entail cost of stock and a multiplier upon the profit. Real Estate should be no different and a profitable office must be worth something. However, just like general business, without profit, market share and some structure then the business is unlikely to sell or be worth very little. In real estate, “very little”, is likely to be second hand replacement cost of plant and equipment.

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Managing your Property Management business

Managing your Property Management business

A decade ago Property Management was perceived as the very poor cousin to Sales within a real estate agency however in 2010 the enormous increases in returns, cashflow and value demand we as Principals are far more professional in our approach to this part of our business.

A rental department provides enormous long term benefit to your business.

  • Business energy and momentum
  • Branding
  • Equity
  • Sales leads
  • Cashflow

To achieve maximum benefit you as the principal must set the standards, monitor performance and create accountability within your Property Management business.

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The Ten Commandments of Customer Service

The Ten Commandments of Customer Service

Written by Ken Wright http://www.thepeoplepill.com/

Customer service is so instrumental to the success of any business I would like to share my thoughts with you on this subject.

When I became CEO of Westpac Financial Services in 1994 my first “Contact Point” column in our monthly staff magazine focused on customer excellence.

I reminded our team that customer excellence, that is, the attainment of raving advocates, will be the key to our ongoing success. It will become what differentiates us from our competitors. I also reminded them that if they felt they were providing superior service currently, to remember the old adage, “You don’t have to be ill to get better,” as a poignant reminder of our obligation to the pursuit of customer excellence. I then provided them with “The Ten Commandments of Customer Excellence.” I feel these points remain relevant today, and so I have modified them from their original focus on providing financial services advice to being generically applicable to any business.

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