Saying they are set to disrupt traditional property management businesses, startup Rent360 has launched an Australian online marketplace for property management that allows independent pm specialists to establish their own businesses.
Co-Founder and Chief Operating Officer Penelope Valentine explained how the platform works: “Rent360’s recommendation engine matches property investors with up to three of the best suited property managers servicing the local area to compare fees, experience, qualifications and client reviews. The property manager appointed by the investor on the platform is the same one responsible for leasing and managing every aspect of the investment property. They can operate from home or an office on a full or part-time basis.”
There are no revenue KPIs from Rent360 so the property manager has full control over the size of the business they operate and the hours they work. Rent360 property managers keep 100 per cent of the management and letting fees and importantly, they will also own the rent roll – therefore building an asset in addition to an income.
Valentine, who has 15 years experience in the industry having worked with McGrath, Ray White and most recently as General Manager at LJ Hooker in Sydney’s Northern Beaches, commented on the barriers that have traditionally prevented property managers from establishing their own businesses: “Upfront capital, fixed overheads and starting a brand from scratch are the largest barriers to entry for property managers seeking to escape traditional real estate agency franchises.
“For that reason, Rent360 has removed most of the barriers to setting up and building an independent property management business.”
Property managers are charged a start-up fee that includes onboarding and marketing collateral. They then pay lead generation (referral) fees when a management contract is won. There is no fee when property managers bring their own existing or directly sourced clients onto the platform. Rent360 also aggregates all of their software and service subscription costs as a ‘pay as you go’ fee.
Commenting on the disruption to the real estate industry, Valentine went on to say: “Speaking from experience, real estate agencies and franchises typically prioritise their sales divisions over property management. Staff within property management teams are often under-resourced, overworked, underpaid and undervalued.
“At Rent360, we are solely focussed on property management meaning there is no compromise with a sales division. There are no farming restrictions as property managers can service clients anywhere in Australia.”
Property managers who apply to be part of Rent360 are carefully vetted to ensure they have the skills and experience required to meet Rent360’s service standards. Valentine commented that those who will succeed with Rent360 are self-motivated and customer-centric.
Rent360 will be focusing on Sydney before expanding to the rest of NSW and other capital cities and states.
