Rent Roll Growth is the Easy Part!
Every week at Real Estate Dynamics we are asked, ‘How can I grow my Rent Roll Business?’
In a recent article, Rent Roll Growth Inside Your 4 Walls, we talked about some of the ‘warmer’ and easier sources of Rent Roll Growth.
Given that these sources of new business are easily identifiable and well known, why are they so easily overlooked? (They can’t be overlooked and known can they?) Competent Business Development Managers tend to focus on these listing sources, so why is it that many Rent Rolls do not grow? Why is it some are losing numbers; not gaining them?
I believe that Rent Roll Growth is the easy part! Without sounding arrogant, the actual planning and execution of Rent Roll growth is easy. The hard part – and the reason that many don’t grow – is that they simply cannot absorb growth. As they exist today, it isn’t possible for many of them to grow no matter how much ‘business development’ activity is added to the mix.
Landlords sell properties and Landlords move back into properties – that has always been the case and it will always be the case. Too often, these sources of lost business are blamed for lack of Rent Roll Growth. I suppose it’s an easy and often convenient excuse.
Need help getting your systems right?
So what stops a Rent Roll from growing? What holds a Rent Roll back? What keeps many Rent Rolls stuck at the same numbers for months and years on end? Why are many not as profitable as they ought to be? Is there some mystery about this, and if so what is the way to unlock this and allow your business to flourish and expand?
There is a ‘winning formula’ and it is a combination of Systems, Leadership, Direction plus Vision. Let’s explain why each of these are important using a range of examples:
- Structure – what systems are in place for structure and how does this link to the Business / Company vision? Does the business have the right people in the right roles? Does the structure allow absorption of more properties?
- Process Control – is every ‘big rock’ process in the business flow charted or documented so that everyone follows the same process? Are these processes linked to standards? If so, how are these standards measured? Without process control, standards and measurement working together, the Rent Roll will not grow.
- How is the Team’s Performance monitored? How is feedback given? Is the team engaged when they come to work?
- Skill Sets – is the skill set of the Team measured and a plan put in place to build on their skills? Do these skill sets compliment growth?
- Vision and Culture – Do the business owner and team have a shared and clear view of where the business is going? If there is no vision and no engagement from the team, chances are the culture isn’t conducive to Rent Roll Growth.
Forgive me if I sound a little harsh – it’s just that I’m always fascinated that so many Rent Roll businesses have a wonderful opportunity to grow and not many actually do it.
The three things that Business Owners want are long term and engaged staff, long term Landlords and a Business that has sustainable and profitable growth.
If you would like to find out more about how our team can help you achieve this, we’d be delighted to talk with you further.