After more than a decade building one of South Africa’s most successful independent agencies, Mike Drennan and his wife Meganne made the decision to relocate to Australia in search of stability and long-term security for their children.
Rather than pursuing sales early on, Mike made the decision to purchase a rent roll, and in just a few short years, he’s been able to grow it by 400%.
From construction to transactions
Mike’s pathway into real estate didn’t begin in sales.
He studied construction management and spent seven years working as a project manager on large-scale commercial developments, including hotels, banks and residential estates.
After months of planning a development of more than 5,000 residences, Mike watched as the first stage sold out in a week.
“That was the moment I realised I was on the wrong end of the production line,” he says.
By that point, he was already investing personally, flipping properties and holding assets across Johannesburg.
In 2013, alongside a business partner returning from the UK, he opened an independent agency with no formal sales background.
The business grew quickly.
“We became the strongest agency in our area by most metrics,” Mike says.
“Sales volume, revenue, profitability per agent. We grew to 45 agents and expanded into commercial and industrial as well.”
But as the South African environment became increasingly uncertain, the decision to leave became unavoidable.
Starting again, properly
Mike and his family arrived in Adelaide in December 2023. By February, his business was registered. By April, he had purchased his first rent roll.
“I just dove straight in,” he says.
The first acquisition came with support from the vendor, something Mike attributes entirely to transparency.
“I told them straight up, I’ve just landed, I don’t fully understand the market yet, and I don’t even know if what I’m buying is fair value,” he says.
“The energy changed immediately.”
Rather than a transactional mindset, Mike approached the deal as a long-term partnership.
“It had to be win-win or no deal. I needed to win, they needed to win. Otherwise, it wasn’t worth doing.”
That approach paid off. The transition period saw no loss of managements in the first 12 months.
Communication beats complexity
For Mike, retention came down to fundamentals.
“When we made a mistake, we called it out early,” he says.
“We explained what happened, why it happened, and how we were fixing it.”
In his experience, most property management issues are not caused by outcomes, but by silence.
“Lack of communication or poor communication causes most problems in this industry,” he says.
“If people understand what’s coming, even if it’s not ideal, they’re far more reasonable.”
That philosophy extended internally as well.
Staff continuity, shared resources during the early stages, and consistent communication formed the backbone of the business.
Growing without a network
When Mike and his family arrived in Adelaide, they knew two people.
“That was it,” he says.
To rebuild, they said yes to almost every invitation, joined community and business groups, and actively sought connections with local accountants, solicitors and small business owners.
“We just told our story,” Mike says.
“That we’d built something successful before, we wanted to do it again, and we needed a shot.”
“It’s amazing how many people are willing to help if you’re honest and you back it up with service.”
Organically, the rent roll doubled.
Then doubled again through acquisition.
In less than a year, the portfolio had grown by more than 400 per cent.
A long-term view
What appeals most to Mike about property management in Australia is its tangibility.
“It’s a real asset,” he says.
“You can value it. You can sell it. There’s a market for it.”
The plan now is to continue growing through a mix of organic growth and acquisitions, while using the rent roll as a stable base to expand the sales business over time.
“I’d like a strong sales team eventually,” he says.
“But the property management side gives you stability and a client base you can build from.”
For those considering buying a rent roll themselves, Mike’s advice is to focus on people.
“Focus on the relationships,” he says.
“With the vendor, with landlords, with staff.”
“If the relationship is strong and you back it up with service, everything else becomes easier.”
