our property management agency’s team structure could win you more clients. How? The new breed of savvy property investors know that one team structure makes them money, whilst the other loses them money. So, they are now doing their research and asking more questions such as, ‘What is your agency’s management style ‒ portfolio or task?’ to ensure they hire property management agencies which use the money-making team structure- portfolio-based management.
Why do they want portfolio-based property management agencies? As you know, portfolio-based management means a Portfolio Manager is assigned to them, their property and their tenants. The Portfolio Manager’s job is to make sure clients and their respective properties and tenants are cared for at all times. The Portfolio Manager therefore manages every process, such as maintenance, inspections, marketing, and so on. This leads to a streamlined and efficient management operation which is favored by property investors because it maximizes communication, service standards and, ultimately, the income made on their investment properties.
What property investors don’t want are agencies where several property managers look after their properties- task-based management. Why? Because when one agent manages maintenance, one agent manages inspections, one agent manages marketing, and so on for every task, property investors’ potential to make money on their properties decreases because communication and service standards also decrease. Since information must pass from agent to agent before it ﬁnally reaches the agent responsible for carrying out the speciﬁc task, messages naturally get distorted which often leads to increased disputes, tasks failing to be carried out and property investors receiving a second-rate service. So, property investors don’t want task-based property management agencies managing their properties because such agencies simply increase their risk of losing money.
The new breed of savvy property investors understand that there are two tasks where task-based management is okay, however. First, when an agent is tasked to consult with them to select a managing agency. Second, when an agent is tasked to secure tenants for their properties. These two roles are referred to as a Management Consultant and Leasing Consultant. Property investors understand that if portfolio-based property management agencies also have Management and Leasing Consultants then this is okay.
So, if prospective clients ask you or your property management team, ‘What is your agency’s management style ‒ portfolio or task?’ what should your answer be? Your answer should be portfolio. This shows prospective clients that your agency has an efficient team structure and management operation in place to give clients the greatest potential to maximize income on their investment properties or portfolio. If your agency’s team structure is currently task-based then I suggest you consider changing to portfolio. Portfolio-based management is what the new breed of savvy property investors want, so putting this team structure in place in your property management agency could very well be the key to streamline your operations and win you more clients.
For more information on how to improve your property management business’ operations and service standards so you can answer prospectives’ questions correctly and win more clients, visit ireviloution.com/findyourpropertymanagernow and pre-order your paperback or eBook copy of ‘Find Your Property Manager NOW: Hire the right agent and make more money’.
Jo-Anne Oliveri, CIPS, TRC, Founder and Managing Director of property management business solutions company ireviloution intelligence, is an international real estate identity who has trained over 500 agencies and thousands of agency owners and property managers worldwide. Visit ireviloution.com to find out more.