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 staffs 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 a more that 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 agreement.
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.