Property managers need to do more than just return phone calls on time to show true value and secure more managements, a leading industry expert says.
Speaking as part of a Transform 2020 lesson, Coronis Now Director Jodie Stainton says property managers must actively think about ways to offer more than their rivals and stand out in the crowd.
“I don’t think showing value is being nice and returning a call,” she says.
“I think being valuable is actually increasing their (landlord’s) return on investment because that’s why they got into investing.
“You don’t go into a performance review with your employer saying you want a wage increase because you’ve been there a long time, you need to show what you’ve actually done.
“How have you increased the rentals coming in? How have you increased the asset value? How have you decreased costs?
“Those are the sorts of things people will pay for.”
Jodie says one strategy to grow a rent roll is to keep a watch list with every rental property in your market on it and if a property has been vacant for two weeks or more, you should contact the landlord.
A landlord with a vacant property that normally rents for $500 per week has suffered a $2000 loss if it’s empty for a month.
Jodie says property managers need to convey that in terms that are meaningful to the landlord.
“That $2,000 as a return on investment, is actually 7.6 per cent for the year,” she says.
“Then you can ask them ‘do you think your agency has a strategy in place to rent your property this week and start getting you your return back’?”
Jodie says it’s also crucial to monitor your Net Promoter Score and to act immediately if it starts to fall.
She says on a scale that runs from negative 100 to 100, Coronis property managers have an NPS of 64.5.
“Our industry sits at negative six,” Jodie says.
“Our satisfaction is really high because we do the right things.”
One of those things is carefully selecting the language their property managers use with their landlords to show value.
“We don’t just say ‘I’ve increased your rent $10 a week’, we say ‘I’ve increased your rental yield by two per cent this year’,” Jodie says.
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