Tenants can provide an untapped resource to generate new rental listings, a property management expert says.
Speaking as part of a Transform 2020 coaching session, Kolmeo Head of Strategy Brock Fisher says word-of-mouth referrals or “advocacy” from tenants can play a critical role in significantly growing a rent roll.
“There is one new management lurking in your tenants right now,” he says.
“Success builds success.
“Once you’ve got one, it’s a lot easier to get two.
“Once you’ve got two, it’s a lot easier to get 10.”
Brock says it’s a common misconception in the industry that property managers should place more focus on landlords, and tenants should be viewed as a potential source of business only when they are ready to buy a home.
He believes this approach “misses the point”.
“Whether or not they ever buy a property is kind of irrelevant … what you really want is a situation where they are talking about you out in the marketplace,” Brock says.
“You don’t have to be fixated on whether they have a property themselves, because they might know someone that has a million properties.
“You’re looking to tap into their network, their connections and people that they know.”
Brock says there are many ways you can leave a positive lasting impression on tenants using simple techniques such as leaving a bag of jelly beans and a card for them after a routine inspection.
Making pre-vacate calls two weeks before a tenant leaves can also help you align their expectations with yours so that they get their bond back quickly and you are handed over a clean property.
“In property management, all conflict comes from a gap in expectations,” Brock says.
“The whole point of a pre-vacate call is to align those expectations.”
Brock says generating referrals can be as simple as asking a tenant if they know anyone who may need property management services.
He says you can also call your landlords to see if they have other properties they need you to manage.
“One thing I learnt early on in my career as a BDM is that 100 per cent of the time that you don’t ask the question, the answer is always ‘no’,” Brock says.
In the coaching session, Brock also explains how you can work out which tenants to ask for a referral, at what time and the right (and wrong) language to use.
He also explains how to reward your clients when they make a referral and when you sign on a new management.
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