Day Two of PPM Conference 2017 has drawn to a close on a day of talented, respected speakers sharing their insights with delegates, amidst an atmosphere of inclusion and peer to peer support.
“Being our 15 year anniversary, I wanted to create something special and memorable for PPM but more so for the overall experience of everyone attending,” said PPM Group Director, Debbie Palmer.
Rent.com.au was a key sponsor of the event, and National Agent Services Manager, David Berridge, said, “The PPM Conference this year was a great example of a wonderful community unselfishly sharing information on ways to grow and better serve investment property owners and tenants.”
Content for day two began with Trish Rogers, who told delegates that they needed to train for change. ‘Change’ was also on the menu as Cushla Symons from Remax Regency showed delegates how technology such as 3D Matterport scanning was changing the way they market properties and record inspections. “Technology like this will become less of a gimmick and more of an expectation,” said Cushla.
Still on the theme of change, the delightful conference MC and property management veteran Malcolm Riley, spoke about his witness to the rise of technology, and the efficiencies that can be created with video as a means of presenting a consistent message to clients. Malcolm also talked about the power of giving and how giving regular gifts to tenants was a turning point for his business.
Amy Sanderson of LJ Hooker facilitated a session on rent roll acquisition. The panel consisted of five specialists each covering different facets of a rent roll purchase, the takeaways including how much you can borrow, how to structure your business, how to make an offer, what should be in your contract, and what to look for when determining the quality of a rent roll. This was one of the stand-out sessions of the day for those looking at purchasing or selling a rent roll, with key insights from professionals who represented each part of the transaction. Here are the top tips from each of the panellists:
- John Knight from Business Depot urged delegates to look at the structure of what they want to own and to look at their succession plans. In the future, would you be looking to transact with the shares of the company, or through assigning the asset of the rent roll? John also said that when selling a rent roll, it is important to perform due diligence on the buyer to ensure that they are someone whom landlords will want to do business with; so important for retention.
- Steven Marinucci of Macquarie Bank said that it is important to understand your capacity as a business to buy – rather than surrendering that to the bank’s assessment of what you can buy and service concerning repayments. A bonus good practice tip from Steven is that where an investment property is sold from the rent roll, the office share of the commission ought to be used to reduce debt on the business because selling a property is not just creating income, it is also losing an asset of the business.
- Chris Goodway, Rent Roll Broker, said that there are a few red flags to be aware of. The first is where the roll is exposed due to multiple property owners who carry the risk of a big reduction in the asset, or retention if they do not proceed with the assignment. Chris also said to be mindful that gross commission is valued differently than fees.
- Jeremy Streten, Streten Mason Lawyers, told delegates to remember: “Good contracts make good relationships” and to ensure that you have valid appointment agreements in place.
- Debbie Palmer, PPM Group, has a due diligence service with full file audits for potential buyers of rent rolls. Debbie spoke to business owners about the importance of having files in order before you think of selling.
After lunch, industry thought leader Fiona Blayney of Real+ Consulting talked about on The Modern Day Property Manager. Conference organiser Debbie Palmer said of Fiona’s session: “It was a futuristic look at what is to come and how things are going to change. There was also a strong focus on defining what type of business you want to be…a cost-cutting discounted business or a superior service focussed business.”
Deniz Yusuf closed the conference with a session on rent roll growth tactics that emphasised the importance of video as a modern communication medium. Louie Hanias from Harris Real Estate in Prospect said: “Although I was able to extract several tips from each of the speakers, I found that Deniz’s talk inspired me the most. As a BDM/PM, I feel that I can implement some of his strategies and techniques to assist me with building our rent roll.”
As a national conference, PPM provides networking and an ideas exchange between property managers and business owners all around the country. Leading property manager Katie Knight, Principal of Remax Success in Toowoomba said, “I think my biggest takeaway from the conference is all of the networking that happens outside of the event itself. This year’s speakers were first class right across the two days with the perfect blend of topics – too hard to pick a favourite! Loved catching up with so many amazing professionals who are all supportive and genuinely want one another to succeed at the highest level.”