For those agents that have been in business for a while and have built up their rent roll, you would have invariably taken properties in locations that are not always convenient to your office. Over time, these properties become a problem, especially now with higher travel costs and wages for staff. The more time staff are away from the office the less productive and expensive the management becomes.
Think about it, you are not only paying for your staff member or yourself to travel and show the property or do an inspection but, while you are out of the office work that could be done is not being done, so it is a double whammy!
Our rationalisation plan is just a matter of going through your property list identifying the areas where you have properties that are away from your office, and looking at the viability of selling off those properties, or swapping with an agent in that area for some properties that they may have in your area.
Another option is to build up the properties in that fringe area and then sell them off. This can provide cash flow to either market for new business, or purchase a small portfolio in your area of influence. Small rent roll portfolios can be difficult to sell, they have less fee volume and higher risk of management losses, but if you get a group of 30 plus then it could be worth considering.
Don’t just bundle up your bad landlords or properties and hope to make some money out of them. Your competition will be awake up to this and once bitten that buyer will make sure all the other agents know about it. If you have very difficult landlords or properties that are not up to rentable standards, for your own benefit retire them off immediately. Tell the landlord unless the property is brought up to standard or certain things change you can no longer manage their property and please pick up the keys. Remember not all business is good business.