Is Your Business Ready?
For the final part in this series, we go over all the key facts and points to take away and consider how you can start implementing these into your business.
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Brad: Welcome to another edition of Rent Roll Insights, I’m Brad Miller from Real Estate Dynamics where we help Property Management businesses build, buy and sell through our Rent Roll Coaching, Property Management Training and Business Brokerage right across Australia. In this final part of our 8-series module on getting your business robot ready, we’ve been covering off on certain topics. Today I’m joined again by Nathan, welcome along.
Nathan: Thanks Brad.
Brad: We’d just like to give a bit of a summary and breakdown on what that’s looked like and just a couple of key facts and takeaways that you should be considering within your business. So, Nathan firstly we spoke about some of those external pressures that are occurring currently out there in the Property Management landscape. We spoke a little bit about technology pressures, economic pressures and client pressures. Can you tell us a little bit more there?
Nathan: Yes, absolutely. In a nutshell Brad we’ve got those three pressures, so our client and customer expectations are increasing at lightning speed, our many systems aren’t providing the necessary output to continue to align the clients and customers, which leads into technology as there’s an introduction of a plethora of apps largely disintegrated. Of course we’ve got economic pressures as well with most suggestions that the market will flatten and there’ll be a downward pressure on rents.
Brad: Yes, that capital growth is not going to be there which is going to force those clients to look for their profit margin within maybe our levels of service.
Nathan: Without a doubt.
Brad: We then looked at in our second episode, we looked at the early warning signs that your business could be in trouble. We spoke about some of the areas around you know lack of growth and low profits or turnover of staff and we even spoke a little bit about losses and client expectations. Can you add a little bit more there?
Nathan: Yes absolutely. So, these are what we call the early warning signs and if your business isn’t growing, if it’s not profitable, if you don’t have long-term sticky clients and long-term sticky staff, it’s only going to become more difficult as the competition increases across the Property Management landscape.
Brad: Yes, and we also spoke about you know when your Property Manager, or your team members in the department, say that they’re too busy. We spoke about capacity and how that can affect profitability in your business.
Nathan: Yes absolutely. So, Rent Roll growth as we’ve often said is the easy part in Property Management, the absorption is another level. So, one of the litmus tests that we say to a lot of leaders is, “what would you do if we put another 300 or 400 properties on your doorstep this afternoon?” Sadly, most leaders would say, “I’d probably have chest pains and half my staff would leave.” That’s a classic indication capacity isn’t right, and the business can’t absorb that growth.
Brad: Yes, which ultimately leads into some of that technology and how its competing for our time you know, not leveraging the most out of it and how that can be affecting the profits within the business as well. Anything else you’d like to add in that space?
Nathan: Yes, I guess just the effective use and coming back to the vision of the business and buying the correct technology and actually going a mile deep into it and really understanding how it works and what leverage it will give you, rather than just paying a subscription and using it you know an inch deep.
Brad: Yes, tick box, there we go, we’ve got that product.
Brad: If you would like to know a little bit more about how your business stacks up with other businesses in the country, if you’d like to know a little bit more about what numbers that you should be tracking within your business. One of the free services that we offer here at Real Estate Dynamics is a meeting we call an “X-ray” where we take a snapshot of the critical numbers in your business and we can provide you benchmarks to see how you’re tracking. We talk a bit about getting the right people in the right seats and putting the right structure in your business for efficiency and allow it to be built on systems. We also talk around a few ideas of what we’re doing with our coaching clients around the country and what’s working for them in the current Property Management landscape. And then finally, we’d love to share a few ideas on how you can make your Property Management business more profitable. If it’s something you think or any of those items might help you in your business at the moment, please feel free to click the link below which will take you through to the X-ray page on our website. We’d love to speak with you, we hope you’re doing well in business and we look forward to catching up with you again, bye for now.