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The Characteristics of a Valuable Rent Roll

July 2017

There is a lot of publicity today about the need for exercise, and how it can assist in extending your life span if undertaken regularly. But despite this, many of us are happy just to do a bare minimum yet still hope for a good result. The same could be said for a valuable rent roll. We all want to develop a strong portfolio that will achieve the top price when we are ready to sell. But can be disappointed when it isn’t worth as much as we thought.

Developing a valuable and profitable rent roll takes time, discipline, effort and energy, and as the agency principal it is essential that you get involved. Don’t leave it to your staff, you will never achieve the same result. Just like the benefit of exercise!

  1. Develop your management fee income.
    Ensure that the management fee income on every property is the best you can achieve for your area.  Resist the temptation to discount fees just to get business. If you have a low fee structure then talk to some one about implementing a fee maximisation program to rectify the problem.
     
  2. Look at introducing other fees.
    Did you know there are up to 20 different fees being charged for property management around the country by agents? We are not expecting you to implement them all, but I am sure there are a very good number that would be applicable to your market (remember it takes effort and discipline to change and improve).
     
  3. Systemise your office.
    It is essential that everyone is working to the same plan, everyone has to do things the way you want it done from the beginning. Otherwise as you grow and develop your rent roll, if staff are “doing their own thing” you will not be able to offer a consistent quality service to your clients.
     
  4. Monitor arrears and vacancies.
    One of the tell tale signs we have of assessing if a rent roll has been well managed is to look carefully at the arrears and vacancies over the last 6 months. If they are high and there has been more than a normal number of tribunal or court cases then the alarm bells start to ring. So ensure you check these reports regularly and implement processes to ensure they are kept under control.
     
  5. Sole agency agreements.
    Ensure your management agreements are up to date and if applicable renewed as sole agency agreements. When it comes time to sell it may be that we can assign the management rather than have all new ones prepared. However this does vary in some states, so is not applicable to everyone.
     
  6. Quality properties.
    There are a hundred reasons for not taking on run down properties for rent. Liability issues and a claim could very quickly wipe out your agency for good. Ensure properties are in good condition, safe and have no accident risks waiting to happen.
    Encourage landlords to have regular maintenance carried out on their properties.

So, good exercising in and out of the office and lets work towards developing strong, healthy rent rolls.


Does the cost of all this latest technology genuinely provide move efficiency and savings within your agency? After all what we purchase today can be obsolete in a few years time.

Some business owners are technology junkies while others are reluctant to incorporate technology, seeing it as an unnecessary evil, costing more money and placing more pressure on staff to change the way they are use to doing business and learning how to use and operate it.

So, is all this new technology worth investing in or is it better to stick to doing things the way we are use to and comfortable with?

Here are several key questions I believe we need to ask and answer before investing in new technology.

First we need to ask the question, is the product relevant to our organization and task that it is designed to apply to? 

Then, is the product going to provide us with efficiencies and cost savings that will offset the investment we are going to make?

Investing in the right products that enable staff to become more efficient and productive is a no brainer.  Remember, you have a one-time investment, which doesn’t incur overtime, holiday pay or super costs, so if it enables your staff to become more efficient and generate more company income per person each year then it becomes a wise investment.

One of the biggest negatives I see all the time is that business owners are willing to invest in technology but then become reluctant to spend time and money training their staff to use that technology in a way that extracts the maximum benefits from their investment.

Take your smart phone as an example, we can go out and buy the biggest and best, only to utilize around 40% of the features that are available on it!

We may have that phone for several years and never learn to appropriately use all the features to their maximum. This is a huge under use of the benefits as well as a lack of maximising a return on our investment.

We invariably see the same pattern with companies that are doing the right thing and investing in great technology, but then dropping the ball by not training their staff to use that technology to it’s maximum potential.  Many staff members are only using a fraction of the technologies potential that they use every day. This lack of understanding and training is costing huge amounts of money and productivity, because not only are you under-utilizing your initial investment, but the underuse of the resources that technology provides, negates the efficiencies and saving that come from making your staff so much more cost effective. 

So, it is important to look at what software and products your staff are using, and make sure that they are getting the maximum out of them by providing regular training.
 
Just as technology is changing and developing, so the training of your staff to use these products to their maximum benefit within your agency needs to be ongoing and regular, so you can be sure that your staff are operating efficiently and maintaining maximum productivity within your agency.

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