ELITE PM Issue 01 Jul Aug 2015 [FULL] by Elite Agent

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THRIVING IN A TOUGH LEASING MARKET A GUIDE TO THE ULTIMATE BRAINSTORM

FIVE TACTICS TO ACHIEVE AND MAINTAIN ZERO ARREARS BEYOND BUSINESS DEVELOPMENT

HANNAH GILL

EXCLUSIVE INTERVIEW WITH RENT.COM.AU CEO MARK WOSCHNAK

I N D U S T RY E X P E R T S A N D K E Y N O T E S P E A K E R S A R P M 2 0 1 5

John Sweeney

Fiona Blayney

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De-constructed Property Management

What I Wish I Knew About Success

2500 Systems

Inception to Success

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Peter Brewer

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Powerful People

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Digital Dissected

Get Smart, Stay Safe

Investors Beyond 2015

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Robin Banks

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Outsourcing Sucks

Business in a Deregulated, Unlicensed Market

Mind Power

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Contents Regulars 008 FROM THE GUEST EDITOR Fiona Blayney 010 READER PROFILE Kelley Seaton 012 UPFRONT News from the community 014 E VERYONE IS TALKING ABOUT Rent.com.au: A bigger home for renters in Australia

022 PM MENTOR: WHEN TO LET LANDLORDS GO Natalie Hastings 024 BD MASTERY: SIX STEPS TO CLOSER COMMUNICATION Tara Bradbury 042 PM Q&A Scott Jones, PRD Nationwide Wagga Wagga 048 THE LAST WORD Troy Hazard

First Person 016 HOW FAR CAN A PROPERTY MANAGER WALK? Brock Fisher 018 CHANGE WITHOUT FEAR Marty Wilson 020 PLANNING FOR SUCCESS Alister Maple-Brown

Cover Story

028 BEYOND BUSINESS DEVELOPMENT Hannah Gill

Features 026 COULD YOUR RENT ROLL BE MORE PROFITABLE? with Penelope Valentine 032 THE CHALLENGE OF CHANGE Console user group panel discussion with Fiona McEachran 036 KPIs: MORE THAN JUST A NUMBER Cathie Crampton 038 THE MOVING CONCIERGE Streamline your Week 040 THRIVING IN A TOUGH LEASING MARKET Hermione Gardiner 044 F IVE TACTICS TO ACHIEVE AND MAINTAIN ZERO ARREARS Jo-Anne Oliveri 046 A GUIDE TO THE ULTIMATE BRAINSTORM John Sweeney

32 6 ELITE PROPERTY MANAGER â&#x20AC;¢ JUL-AUG 2015

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ISSUE 01 JUL/AUG 2015

epm.eliteagent.com.au FIONA BLAYNEY – Guest Editor fiona@realplus.com.au SAMANTHA MCLEAN – Managing Editor samantha@eliteagent.com.au MARK EDWARDS – Commercial Director mark@eliteagent.com.au JILL BONIFACE – Sub-Editor editor@eliteagent.com.au HERMANSYAH ASRORI – Web Master newsroom@eliteagent.com.au CHORUS DESIGN – Art Direction/Design thegoodpeople@chorusdesign.com INDUSTRIE MEDIA - Feature Photography and Video industriemedia.tv

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Postal Address: Suite 35, 4 Young Street, Neutral Bay NSW 2089 Telephone (02) 8231 6669 Registered by Australia Post/Print Post 100020180 EDITORIAL SUBMISSIONS The publisher welcomes editorial submissions from individuals and organisations within the real estate profession. The publisher reserves the right to edit, modify, reject or contribute to the content of the material provided. Some opinions expressed in Elite Property Manager Magazine are not necessarily those of its staff or contributing editors. Those opinions are reproduced with no guarantee of accuracy although Elite Property Manager Magazine endeavours to ensure those opinions and comments are factual. Our subscriber list may sometimes be made available to relevant brands who might be of interest to our readers and from time to time we may be in touch to inform you of new Elite Agent products and services. Please visit eliteagent.com.au/privacy for details on how we collect and use your personal information. Please email subscriptions@ eliteagent.com.au if you would rather not receive these communications. © Elite Agent Magazine 2015. All rights reserved.

8 ELITE PROPERTY MANAGER • JUL-AUG 2015

GUEST EDITOR’S NOTE FIONA BLAYNEY

SO HERE WE have it: Elite Property Manager. It was inevitable that we would eventually force our way out of the back pages of Elite Agent, and it’s great to be breathing the fresh and exclusively property management air. Travelling around the country I find myself spending a lot of time on planes. More often than not I pull out the laptop and get stuck into a power session of work (I was like a kid at Christmas when I discovered Wi-Fi on an Emirates flight last month – nudge, nudge, Virgin). But after a long, emotion-charged day in Melbourne recently I decided to debunk my brain and watch a documentary on the production of clothing across the globe.

Debunk it did not, but discover I did! Have you ever thought how many people and businesses around the world touch one piece of clothing? We are increasingly concerned about the production of cheap clothing in, say Bangladesh, but guess what? The T-shirt may only have been sewn in Bangladesh, while the origins of its other components come from many other places. Where was the cotton grown, washed, coloured and spun? Where was the fabric designed and produced? Where was the garment designed and the pattern created? Replicate this process across the production of the cotton that is used to sew the T-shirt together, and we haven’t even started on the clothing tag and packaging. There are many facets that go into making a simple piece of clothing, just as there are so many different elements that go into making this magazine that you now hold. As the Guest Editor of this Premiere Edition of Elite Property Manager, I have now experienced how big a job this is! The magazine you hold is the creation of our ‘global industry’, and representative of the rapid pace at which

progress is made. Less than 12 months since the launch of Elite Agent Magazine, Samantha McLean took some reader feedback on board to create this magazine. It took many, many conversations and a great deal of support from industry participants to turn the idea of a separate publication for property management professionals into a reality. Sponsors, advertisers, contributors, property managers, principals, industry experts, business gurus, graphic designers, printers, distributors, editors, proofreaders and all of their associated support teams – from around Australia and internationally - have come together to produce this

quality, educational magazine for you and your business. Like the T-shirt, of course, you may never know exactly how many hours or how much effort it has taken. But I am sure once you start reading you will, just like the first touch of a new garment, instantly identify the quality jumping off its pages. It’s pretty fitting for the first edition that Hannah Gill, a standout business development manager, is on the cover. She is truly representative of the fact that a sustainable business requires a sustainable growth model, and perhaps that is the overarching principle for this magazine and your business. We were well impressed with the fact that she also

publishes her own magazine as a marketing tool for her business and her landlords, while also providing an additional revenue stream for the company. Imagine turning your monthly landlord/ owner/investor newsletter into something revenue and profit generating! In our office a few weeks ago, the team and I calculated how many training sessions and people I touch across a year. In the past 12 months at Real+ we have formally interacted with over 500 offices, and I can honestly say that every one of them asked the age-old question: how many properties can a property manager manage? Check out page 16 as Brock Fisher attempts to answer that question; the pressure is on! With ARPM looming, everyone thinks I am flat strap – and, comparatively speaking, they are probably right. However, my goal for this year is to remove the word ‘busy’ from my vocabulary, so when someone asks how I am, instead of saying ‘busy’, I say ‘I’m really productive’. It’s exciting to be so productive when I get to spend time with our amazing speakers; you can catch a glimpse of Marty Wilson, Cathie Crampton and John Sweeney in this edition. With attendance growing year

on year and another program I am unbelievably proud of, I know you will get a lot out of attending this event. Visit arpm2015.com.au to book. On reading this first edition of Elite Property Manager, I think you’ll quickly form the view that this magazine must be read by everyone in your office. I’d go as far as to say it’s compulsory. With tips on how to deal with the market, letting go of problem landlords, reaching the epiphany of zero arrears, and plenty of real property manager stories (see The Challenge of Change on p32 ) without a doubt you’ve got a property management handbook right here. By the way, if you’re keen to keep your learning all in one place, may I recommend the iPad? Using this tool you will be able to download this magazine as an app, and if you are a Real+ user I will also be able to lend a hand whenever you need one, all on the same handy device!

epm.eliteagent.com.au 9

READER PROFILE

AT HOME IN THE HUNTER Kelley Seaton is the Director of Property Management HQ. She and her team work from three office locations (Central Coast and East Maitland, NSW and from East Brisbane, QLD) with the vast majority of managements located in the gorgeous Hunter Valley. Having worked in the industry for over 20 years, she loves nothing more than challenging herself and her team to deliver outstanding service. What motivated you to get into property management? I was 18 and had just finished my HSC in Year 12. I had no idea what career path to follow, so I decided to take the first job to earn some money and then work out where I was headed. I had one rule: That was I didn’t want to do real estate. Murphy’s law: I attended my first interview and got a job as a receptionist in – you guessed it – a real estate office. I wasn’t entirely motivated at first, but the love of real estate became a way of life. I progressed through many roles then realised property management was way more interesting than sales admin and reception, and I never looked back. About five years in I became motivated to make this job my career. What have been your biggest challenges so far? The biggest challenge was definitely taking the plunge to work for myself and open my own office. Being very passionate about the industry

the decision to do this was quite easy; the hard part was that I had very little funds to set myself up and didn’t want to borrow money, so I had to look at ways to grow my own rent roll organically. My second biggest challenge was deciding to open an office in Queensland. Both of these choices have been very rewarding, (and somewhat challenging) every single day. What or who inspires you? The great outdoors always provides me with inspiration. We have a beautiful country and I think it’s important to

10 ELITE PROPERTY MANAGER • JUL-AUG 2015

stop and smell the roses and not to take things for granted. Although I love nature and beautiful landscapes, my family and friends are my true inspirations. My kids keep things in perspective too; being a mother is very inspirational in itself. In your briefcase right now is… A lot of pens (I am a secret pen thief), my laptop, charger, two Matchbox cars, iPad, post-it notes, business cards, USB stick, sugar-free chewing gum and about four lipsticks (because I need more than three at once!) Something you couldn’t live without? This might sound selfish, but I need one hour set aside just for me every week, to do nothing for anyone except myself. It might change every week, but it could be taking time out to clear my head, getting a pedicure or taking a bath (with a glass of wine) and soaking it up. It’s a moment of re-balance. Technology must haves? I can’t be without my iPhone. I have tried on several occasions not to use it, but I just give into the temptation every time. It’s hard to know how I survived before I had it surgically attached to me. What are you most looking forward to in Elite Property Manager? Sharing, reading, listening to the ideas and stories of many amazing like-minded

professionals in the property management sector of our industry. Property management has played second fiddle to sales for so long; it’s about time we as property managers stood tall and were recognised as experts in the field. Having access to the experienced individuals and those involved in EPM is essential to everyone who wants to succeed in real estate property management.

I CAN’T BE WITHOUT MY IPHONE. IT’S HARD TO KNOW HOW I SURVIVED BEFORE I HAD IT SURGICALLY ATTACHED TO ME. What advice would you give someone just starting out in property management? Be strong, and don’t take things personally. Surround yourself with professionals and industry experts and absorb as much information from them as possible; they can teach you things from their own hands-on experience. Learn the legislation and ensure that you attend regular training. Be a good listener, and a good communicator. This is a service industry; if you can communicate with your customers on a very regular basis, you are halfway there. Everyone loves communication.

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epm.eliteagent.com.au 11 property management

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Rockend wins Employer of Choice at the Regional NSW Business Chamber Awards Rockend has been awarded the winner of the Employer of Choice award at the North Eastern NSW Business Chamber Awards. The honour was delivered on 26 June 2015, in front of 300 guests in a ceremony which was hosted Luna Park. As stated on the official NSW Business Chamber Awards website, the Employer of Choice award “recognises excellence in HR and Workplace Health and Safety initiatives and programs that provide a stimulating and supportive workplace for the benefit of the organisation and employee. Programs include employee education, training and development, as well as employee performance, remuneration, recognition and reward initiatives”. Over the course of the year Rockend has invested heavily in the development of each individual by reinvigorating the internal learning and development program and introducing a Health and Wellbeing program. These programs include activities and opportunities such as access to the gym, daily breakfast, snooze rooms and access to online learning tools. Rockend’s HR Manager, Dean Carpenter, explains the significant impact these programs have had on the business. “Since implementing these programs we have seen Business Engagement rise from 84 per cent in 2013 to 98 per cent in 2014. Personal Engagement has also risen, from 81 per cent in 2013 to 97 per cent in 2014. “Our business philosophy is to create a supportive and engaging environment for all staff. We believe that if our staff are engaged with the business they will provide a premium level of service to our customers, which in turn leads to a successful business,” Dean explains. “Winning this award is an exciting acknowledgement of the great workplace culture Rockend has created and continues to maintain. As a result of the win, we are now entered into the State NSW Business Awards, to be held in Darling Harbour on 27 November this year. “ For more information visit rockend.com.au.

12 ELITE PROPERTY MANAGER • JUL-AUG 2015

RECRUITMENT RESULTS: SUCCESS IS A TWO-WAY STREET, SAY RECD

Sometimes we need a reality check about our business, our expectations and ourselves when it comes to attracting and securing talent. Part of this checklist includes the hiring process, says Melissa Karatjas of recruitment firm RECD. “The hiring process is something that is actually taking place daily in your business, especially if you consider that each and every day you review, develop and form a vision for what the people in your business should look like,” says Melissa. RECD’s difference is their understanding of both the need for cultural fit as well as skill-set to ensure that all members of the team are happy and productive; this is proven to lead to real results. Melissa continues, “Our 360-degree

Stay a step ahead with a single view of your customers How many times have you missed opportunities because you didn’t have the right information? Now there’s a way to change that with PropertyIQ. Chances are you’ve collected a lot of information about your customers their properties over the years. The problem is it could be in separate Word documents, Excel spreadsheets and on different computers. Getting your hands on the data is not only difficult; it takes time which could be more profitably spent on other tasks. However, lost time is not the critical issue. What’s really important is that you don’t miss opportunities – whether in building relationships, generating leads or an opening in the market. That’s where PropertyIQ can help, with a single view of your data so you can use it to further your business goals. PropertyIQ CEO Dawie Verryne says, “When your existing data is migrated onto the PropertyIQ

approach really does ensure that we fully understand our clients, their roles and the candidates to make sure that we make the right match.” One of the keys to getting this right is to know yourself and your business, and that is where RECD can help. “If you want to attract a particular type of employee, they need to be attracted to you and your business as well. We help hold that mirror up to our clients and our candidates and set the correct expectations; not to ‘do a deal’, but to help both parties find the perfect fit. Success really is a two-way street,” says Melissa. If you are looking to grow your team with the right people, come and talk to RECD at ARPM 15, or visit recd.com.au.

platform, you access it through the one easy to use interface instead of multiple applications. All information relevant to a customer can be seen in a variety of ways, from high level to specific detail. Better still, you’re able to combine the data with information from third parties like CoreLogic. This gives a comprehensive understanding of the customer in relation to the market.” To find out more, visit PropertyIQ at ARPM 2015 or on the web propertyiq.com.au.

Be aware but not alarmed As disturbing instances of tragic house fires continue to rise, property managers should remain well versed in national smoke alarm legislation and relevant updates, and how these requirements can affect them and their landlords. Smoke Alarm Solutions, the nation’s leading smoke alarm provider, carry out more than 1,800 inspections each weekday and regularly witness risks posed, not only to occupants by way of inadequate fire detection devices, but to property managers and landlords whose properties are not compliant with current state and federal legislation. “It is frightening to think what may happen in a home without appropriate fire alarms,” said Adam Graham, Smoke Alarm Solutions’ National Field Operations Manager. “It is not just a matter of financial or legal ramifications – people’s lives are at stake.”

Property managers acting on behalf of a landlord hold a duty of care to ensure ongoing smoke alarm maintenance obligations are met. This is usually a state-based requirement. It is also best practice for property managers to familiarise themselves with updates to national legislation which could implicate their landlords, such as the recent introduction of the requirement to interconnect smoke alarms in properties built after May 1, 2014. Smoke Alarm Solutions invites you to visit their booth at this year’s ARPM Conference to assist you to better understand your responsibilities. They are also more than happy to organise an educational presentation for you and your colleagues at your convenience. For additional information visit smokealarmsolutions.com.au.

REIQ SUMMIT WILL CHANGE THE WAY YOU THINK

techniques to help property managers deal with difficult people. “Property managers face challenging personalities every day of the week and this session will equip them with the tools and the skills for turning those encounters into successful interactions,” Ms Mercorella said. When meeting a potential new client for the first time, that all-important first impression is crucial. Maree Clancy will show you how to shine every time. “Maree’s strategies are critical to success and everyone will find her tips useful in their professional and personal life,” Ms Mercorella said. Malcolm Riley, a well-respected industry icon, will offer guidance on how to take your business to the next level, with a practical checklist of things to do in order to succeed. Principals will not want to miss Annie Gregg, who will reveal the key traits all good leaders have and teach you how to incorporate those qualities into your own leadership style. Become influential within your business and minimise conflict, inspiring staff loyalty and improving staff retention. “These are just a few of our speakers and they are guaranteed to inspire, with many more lined up – there are too many to mention!” Ms Mercorella said.

The REIQ Summit is a two-day conference that no property manager can afford to miss, featuring an array of spectacular speakers who will inspire, provoke and galvanise. The first day of the conference replaces the annual REIQ PM conference and offers something for every property manager, regardless of their level of experience and career goals. REIQ CEO Antonia Mercorella said the PM conference was one of the most popular events on the real estate calendar and this year promised to be even bigger and better. “We’ve got people who will inspire, who will teach and who will offer valuable guidance specifically for property managers,” Ms Mercorella said. “Headlining the day will be the incredible Matthew Ames, whose personal story is so uplifting that you will be moved. No matter how bad your worst day is, Matthew’s day was probably tougher. He is resilient and has much to share about rising above personal challenges, and those lessons translate well to the professional world,” she said. Dr Anne Purcell, a Harvard-educated psychology expert, will reveal

NUMBER CRUNCH RENTER FEEDBACK RENT.COM.AU JUNE 2015 SURVEY

Five biggest issues for renters when looking for a home

Finding a place that allows pets

45% Agents not responding to enquiries

37% Coming up with the bond money

31% Unable to inspect properties at times I want

48%

Finding a property with specific features (eg double garage or decent kitchen)

44%

epm.eliteagent.com.au 13

EVERYONE IS TALKING ABOUT…

A BIGGER HOME FOR RENTERS IN AUSTRALIA THE RECENT ASX listing for Rent.com.au Ltd (RENT) has

propelled the company into a dynamic phase of growth as it moves a step closer to its goal of becoming the ‘Home for Renters in Australia’. CEO and Founder Mark Woschnak shares some insights into the company’s seven-year journey and future vision. Rent.com.au has just listed on the Australian Securities Exchange (ASX). What opportunities does this listing provide for you, and for the property management industry in Australia? The listing represents a significant milestone in that it enables us to take the next step towards achieving our vision of becoming the ‘Home for Renters’ in Australia. Our listing in June, and the associated capital raising, reflects progressive and sustained growth over the past seven years and consolidates our market-leading position in the dedicated national rental sector. Since the commencement of operations in 2007, we’ve focused solely on the rental market and have been driven by the strong belief that the rental market in Australia is under-serviced. The renting population of Australia is going to continue to increase and the business is strategically poised to move directly into this dynamic growth phase. Having now built the IT, infrastructure, product service and mobile platforms required, we can now shift our focus towards a commercial phase and create a household consumer brand that adds value at a broader community level. To date, our level of national traffic has provided strong enquiries and results for agents in many areas, but a very low response in others. This was a function of our growth and we now look forward to raising our brand awareness and increasing the level of enquiries across the nation, targeting over 500,000 unique visitors monthly over the next year, and over one million in time. This is just renters, of course, not homebuyers. Our goal is to leverage our online position to deliver consistently a high volume of timely and relevant renter and landlord leads to all property managers who use our site.

“RENTING IS BECOMING A CONSCIOUS LIFESTYLE AND INVESTMENT CHOICE, WITH OUR SURVEYS SHOWING AN INCREASING PERCENTAGE OF RENTERS WHO HAVE NO DESIRE TO OWN A PROPERTY.” The team at RENT is passionate and committed to this unique opportunity. The new capital also allows us to respond immediately to market needs by employing around 30 more staff members to deliver a broader range of products and services, and provide even more customer service to property managers and the wider community. We look forward to working with all industry participants to make a positive and sustainable difference to the Australian property management industry.

14 ELITE PROPERTY MANAGER • JUL-AUG 2015

How are you creating the rental marketplace? Looking at global benchmarks, we see that creating a ‘marketplace of rentals’ is crucial to providing renters with a first-class search service with the widest possible range of rentals via agent and private landlord listings. We’ve grown substantially over the past six months alone, with over 6,150 individual agencies registered to rent. com.au (representing approximately 80 per cent of all agent rental listings nationally). This growth means that nearly 30 per cent of all renters in Australia used rent.com.au over the past financial year to help find their rental property. Through the provision of comprehensive information and innovative service solutions, such as our new mobile responsive design, plus add-on services like RentCheck and unique RentBond products, we are constantly improving the level of excellence and search experience for renters. What growth do you see in rentals? We think the rental industry is extremely under-serviced relative to the propertyfor-sale environment. This alone provides a great opportunity for improvement, but we believe that the most significant growth in rentals will come from the sheer volume and shift of the current 30 per cent of the population who currently rent to a much higher percentage of the market, and this is starting now. Many commentators, government and other statistical agencies suggest that our capital cities are likely to follow the trend of most other major capital cities in the world, whereby 50 per cent or more of the population rent, and that we could reach these figures within a decade. While the average In Australia is about 30 per cent across the nation, this trend is already evidenced by many of our capital cities, especially Darwin at 47 per cent, Sydney at 35 per cent and Brisbane at 34 per cent. We see this is a growing trend, with the other capital cities following suit over time. This current and forecast growth is not just due to housing affordability issues, but because renting is becoming a conscious lifestyle and investment choice by many and work trends are changing, with our surveys showing an increasing percentage of renters who have no desire to own a property.

What does this mean for property managers? As the first ASX-listed property portal dedicated solely to property management, we see a lot of growth ahead and a great opportunity to partner with the agent industry to provide better services and more knowledge to property managers. The type of renter growth anticipated means that there will be a significant and increasing emphasis on rental marketing, rental services, rent rolls and focus on property investors in the years ahead. This is the beginning of a significant, long-term growth phase for the property management profession. As the process of managing a rental becomes more regulated, we see enormous opportunity for property managers to target and convert the ‘non-agent managed’ rental market share of approximately 46 per cent to ‘agency managed’. This doesn’t just include a typical private landlord, but also the other non-agent property owners such as corporates, builders/developers, charity groups and government agencies, who will require increasing levels of property management services. RENT allows all property managers to benefit, as it offers a free listings service as well as the opportunity to take up a range of paid subscription services which provide greater benefits. Many of our services are provided on a ‘first-in basis’, so now is a very good time to subscribe to RENT as we gear up for our expansion objectives. Our marketplace at rent.com.au not only provides better letting results to a wider and unique audience of renters (about 50 per cent of whom do not go to REA or Domain), but also to agents, with huge opportunities to market their professional services to this large non-agent market share, representing approximately 1.2 million rental properties. We deliver a range of localised services that provide agents with business development opportunities and leads from private landlords looking to appoint a property manager. What are the benefits for property management businesses to use a portal which is dedicated only to property management? The most significant benefit for the industry comes out of our pure focus on rentals. This allows us to look deeper into the processes, from a whole of market viewpoint, and work proactively to create

innovative solutions and provide better products and services for property managers. We actively work with franchise groups, independents, trainers, educators, software and product suppliers to ensure that the focus of property management continues to the levels it deserves. By creating a portal that focuses solely on the rental process, we can eliminate timewasting and frustration experienced by renters and more accurately address their needs and those of the wider industry.

OUR FOCUS WILL CONTINUE TO BE ON CONSUMER BRANDING AND THE QUALITY AND DEPTH OF SERVICES IN THE RENTING MARKETPLACE FOR THE BENEFIT OF ALL PARTICIPANTS. For property managers, we are acutely aware of providing excellent value for money, and this is represented in our low pricing model, subscription packages, listing upgrades and reports. An example includes our ‘RentBond’ product that allows renters to have their bond paid upfront to agents, and up to six months to pay it off without any deposit paid or interest charged. As we significantly increase our marketing and branding of the site by creating this central marketplace, we can facilitate greater economies of scale for property managers in getting enquiries and services at lower costs. What are some of the add-on services that rent.com.au will be providing in the next 12 months? We will continue to focus on building the marketplace for renters, property managers and private landlords. We have identified dozens of new services that we are working on, including quotes for services that renters need when moving, such as cleaning, removals, storage and insurance. For property managers, the next range of additional services relates to better qualification of renters, inspection services, easier appraisals and more connectivity with after-letting functions such as utilities

connections. There is also a worldwide trend towards the use of much more video in all aspects of property management, and we aim to provide our first range of these services. What are some of your other goals for rent.com.au in the next 12 months? Our most important goal is to raise the awareness of RENT and to target over 500,000 renters to the site every month. In developing and facilitating the fast growth of the www.rent.com.au marketplace, we will be using our other supporting assets of rentalproperty.com.au, propertymanager. com.au and lease.com.au, and are in the process of redeveloping these. There are some analysts saying it’s possible that rent.com.au could be the next realestate.com.au. What are your thoughts on that? We have a clear and sole focus on rentals and have no plans to become a general portal or property-for-sale portal. We don’t see ourselves as competition to REA or Domain; instead, we will focus on the under-serviced rental sector, and therefore represent an important complementary addition to the online marketing mix for any agent. The business of renting is very different to that of property for sale, with different functions, different services, timing and demographic audiences. The size and scale of REA is enormous and very successful in the sector they operate in, so we are not making direct comparisons of our business against REA or any other. Our focus will continue to be on consumer branding and the quality and depth of services in the renting marketplace for the benefit of all participants. Can agents be a part of the ASX listing opportunity? Many agency principals, property managers and industry service providers have asked us this question. The answer is yes, and many have invested already as shareholders. Anyone can buy shares via a broker and we think now is a good time to invest because the business is at the beginning of its marketing and product development growth phase. As a business that is solely focused on the property management industry, many investors from the industry take comfort in this because they understand the market, and know firsthand the opportunity that lies ahead.

epm.eliteagent.com.au 15

FIRST PERSON

Brock Fisher

How far can a property manager walk? IS THERE A CEILING on the portfolio size for an individual

property manager? Could you improve your capacity by 20 per cent while still doing a great job? Brock Fisher, COO of Rental Express, takes a look at both the myths and the possibilities. ‘HOW MANY properties

can a property manager manage?’ This is one question I hear a lot in the property management industry, second only to ‘How many properties do I have to manage?’ in an interview for a property management role. If I asked you ‘How far can a property manager walk?’ what would your answer be? Think about that for a moment. How far do you think a property manager could walk? Your mind starts ticking over, thinking about all the variables and different factors involved in coming up with a logical answer. Maybe you think the question is stupid, and that’s fair enough too. It is intended to challenge perceptions around this issue because, in the evolving industry we work in, portfolio size looked at strictly as a number is no longer relevant. It is a property management industry cliché. One of the things I have noticed about the portfolio size discussion is the general tendency for people to shout down anyone doing anything that would be considered outside of ‘the norm’. They look at all the reasons why they believe it can’t be done, assuming that bad service,

poor results and extreme levels of stress are the only things that can happen with a larger portfolio than the size they are used to. I have seen discussions in social media forums and at conferences about portfolio sizes that many people seem to find ‘confrontingly large’. But what I find frustrating and disappointing is that

improve their skills and allow an incremental improvement in their own individual working situation. It is my opinion that assumptions people make about portfolio size stem from a limited imagination. They consider their own circumstances right now, do some maths in their head about what would happen

manager should be managing 396 properties or they aren’t trying hard enough. Bill’s story, to me, is a lot like the property management equivalent of the four-minute mile, when society thought that it would be never be possible for any athlete to run a mile in less than four minutes. Once that barrier was broken and people knew it could be done, many athletes then quickly found a way to go faster than four minutes. Property managers who successfully look after large portfolios have grasped an amazing opportunity to challenge themselves, to learn innovative and different ways to handle their week and its various activities, and consider different perspectives to improve how they operate as a property manager. Imagine if you could improve your own capacity by 20 per cent while still doing a great job and working a regular week. You’ve then added significant value to

IN THE EVOLVING INDUSTRY WE WORK IN, PORTFOLIO SIZE LOOKED AT STRICTLY AS A NUMBER IS NO LONGER RELEVANT. IT IS A PROPERTY MANAGEMENT INDUSTRY CLICHÉ.

people are losing a golden opportunity to learn from excellent operators. They completely close themselves off to what could be possible, rather than being challenged by it, being curious about it and asking questions to see what lessons can be learnt to

16 ELITE PROPERTY MANAGER • JUL-AUG 2015

if their portfolio was 15 per cent bigger, or 50 per cent bigger, and arrive at the conclusion that their world would be carnage. But what if your business was structured differently? What if your systems and software were different? What if you worked in another way than you do now? What if you had assistance – what might be possible then? The lessons learnt from industry leaders like Bill Basha at McGrath Cronulla are not that every property

the business and had a great impact on profit. How much more receptive do you think your principal or department manager is going to be when it’s time to review your salary package? And how much more confidence will it give you to negotiate a rise? When you think about portfolio size, don’t just focus on the number itself. Here are 10 factors to consider which have a huge impact on what is and isn’t realistic: 1. What software is used to manage property

management tasks? 2. What software is used to handle leasing enquiry and prospective tenant bookings? 3. Are there any leasing officers or routine inspection officers, or do you do all that yourself? 4. Are there any property management assistants or do reception staff help? And if so, how many tasks do they help you with, and how much of those tasks do they take care of? 5. Are entry inspections, vacate inspections and routine inspections completed on site, on an app, or are they handwritten and typed up in the office? 6. How many routine inspections need to be done per year? 7. How far are the properties from the office? How far are they from each other? And what roads do you need to use to get to them? 8. How many are houses, and how many are units? 9. How many multiple owners are there in the portfolio? 10. How old are the properties generally? There are more, so while you are thinking about it why not find another five factors that might influence how many properties you can manage effectively? Speaking from personal experience, in the past I’ve managed a portfolio of 130 modern units located quite close together that took half the time to manage than a portfolio of 100 older houses and units that were far more geographically spread out. At Rental Express we focus on the staff-to-property ratio, which takes into account the number of staff involved in providing frontline property management services (or

providing assistance and support to those who do), divided by the number of properties we manage. This ratio is currently one to 70. There are hundreds of different ways to structure a property management business but, regardless of how many properties are managed and under what structure, there are four key factors that really matter: 1. Does it work and get the job done? If it doesn’t deliver results, there’s no point doing it that way. 2. Does it result in clients being satisfied? If clients aren’t happy with the service provided, they don’t stay. 3. Does it result in property managers being happy, satisfied and well paid for their efforts? If property managers are not happy with the structure, support and remuneration, they leave for better opportunities 4. Is it sustainable? If it’s not sustainable, allowing the business to make a profit, then the job opportunity ceases to exist because the doors of the business need to close. So, next time you are discussing the issue of portfolio size, how will you put that into context and what will your follow-up questions be? And if you come across a property manager responsible for a large number of properties, rather than being sceptical try saying ‘Wow, that’s great. How do you do that?’ Be curious!

support

BROCK FISHER commenced his property management career in 1998 and is a licensed real estate agent. Brock works as Chief Operations Officer at Rental Express in QLD, one of Australia’s largest and fastest growing specialist property management businesses with a rent roll of approximately 4,500 properties.

epm.eliteagent.com.au 17

FIRST PERSON

Marty Wilson

Change Without Fear

FORMER AUSTRALIAN COMIC of the Year turned bestselling

author Marty Wilson takes a shrewd look at our instinctive reaction to change and why we shouldn’t let our fears stop us from stepping outside the cave.

CHARLES DARWIN, the father of the theory of evolution, said, “It’s not the strongest of the species who survive, not the most intelligent, but those who are the most adaptive to change.” Change is hard for all of us. I’m a pharmacist turned copywriter turned stand-up comic turned wine writer turned author and speaker, and I still find change incredibly challenging. Ironically, it’s evolution that has made change hard for

WE ALL KNOW HOW ADRENALINE FEELS. SOME OF US CALL IT FEAR OR NERVES OR BUTTERFLIES; SOME CALL IT KNOTS IN THE STOMACH; SADLY SOME OF US CALL IT ‘THAT THING THAT STOPS ME LEARNING A LANGUAGE, STARTING A BUSINESS, OR PHONING THAT SPECIAL SOMEONE.’ us. Survival of the fittest has hardwired our brains to seek patterns and avoid change. When something is familiar we feel relaxed and confident. When we’re trying something different, a part of our brain called the amygdalae, situated deep down in the basal ganglia – one of the oldest parts of our brain – stimulates a surge of adrenaline that

gives us sweaty palms and a tight feeling in our abdomen. We go into our favourite restaurant and think, ‘Ah, nice.’ Then we find they’ve changed their whole menu. Our feelings change to ‘Eeek, not nice.’ I come home to my wife of 10 years; I relax. But I come home to my wife and her new personal trainer, Sven, and tense up.

18 ELITE PROPERTY MANAGER • JUL-AUG 2015

This is our body taking part in the classic ‘fight or flight’ response. We all know how this adrenaline feels. Some of us call it fear or nerves or butterflies; some call it knots in the stomach; sadly some of us call it ‘that thing that stops me learning a language, starting a business, or phoning that special someone.’ It’s such a shame we’re all brought up to call this feeling something bad, because it doesn’t have to be. We only feel it at all because our physiology hasn’t caught up with civilised society. Emotionally and intellectually we’re not primitive any more, but we still have this Neanderthal part of our brain that sets off alarm bells if we move too far away from the cave. Ten thousand years ago

this was a great survival mechanism. Back then life was physically dangerous and people who explored were people who died. However, these days it’s almost never life or death. We still get the same big hit of adrenaline but we’re just out of our comfort zone; fight or flight just isn’t appropriate any more. In a new business pitch it’s not considered good form to run away from your client screaming like your hair’s on fire, or lean over the desk and punch them in the face. Because we’ve grown up calling this adrenaline surge ‘fear’, that’s how we react to it. We all try to build a little bubble of sameness around ourselves to avoid it. We choose new friends just like our old friends and new systems just like our old systems. We go into a pizza place, look at the menu and go, ‘Hmm, Sicilian… Capricciosa looks nice… Ham and Pineapple, please.’ Life is a short, precious gift. We can’t let that underdeveloped, Neanderthal part of our brain persuade us to spend our life safely tucked up inside our cave. To use a more Australian metaphor, don’t live between the flags. Sure, on the beach swim between the flags. But don’t live between the flags. If happiness has a motto, it’s not ‘Same again, thanks.’ If a life well-lived has a soundtrack, it’s not a nonstop block of Classic Rock. If success has a flavour, it’s not Ham and Pineapple.

MARTY WILSON is a pharmacist turned awardwinning copywriter turned Australian Comic of the Year turned bestselling author and change management speaker. This year he will be speaking at ARPM 2015. For more information visit arpm2015.com.au.

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FIRST PERSON

Alister Maple-Brown

Planning for Success

IMAGINE YOU’RE AT A DINNER PARTY in 12 months’ time and

someone asks you to explain your business to them. What will you say? Is that explanation any different to what you would say if they asked you today?

WHAT ARE the differences between your business now and where you want to be in 12 months? And how did you get there? These simple questions can help you to identify your goals, clearly and concisely, for the coming year. In order to achieve your goals it is important you have a realistic and measurable plan in place. To create this plan, segment your business into key development areas and allocate measureable KPIs for each quarter of the year. Implementing a structure like this allows you to measure the course of improvement and business development over the coming year. Let’s look at some of these key areas.

business development manager. Consider how these different revenue streams contribute to your overall goal.

customer communications or using online owner and tenant portals could set you apart from the competition.

CUSTOMER SERVICE GOALS Quality customer service is a simple yet proven method to improve your business profile and your revenue. What differentiates your business’s customer service offering from that of your competitors? Increasing your

PROCESS GOALS All property management businesses have a wide range of processes, but are yours the most effective method for completing your workload? Continually reviewing and improving your processes will ensure

BUSINESSES CREATE FINANCIAL TARGETS FOR THE YEAR, BUT OFTEN NEGLECT TO INCLUDE A PLAN OF HOW THEY WILL REACH THESE GOALS.

FINANCIAL GOALS Businesses create financial targets for the year, but often neglect to include a plan of how they will reach these goals. Without a tactical approach you are likely to proceed with business as usual, which will not produce the financial goals you desire. If you are looking to increase your revenue over the course of the coming year, find additional revenue streams for your business. This could include hiring another property manager to increase your property portfolio, or appointing a dedicated

20 ELITE PROPERTY MANAGER • JUL-AUG 2015

you are working in the most efficient way possible. Process goals can also include the implementation of technology, to automate your manual tasks and reduce the time spent on each job.

STAFF LEARNING AND DEVELOPMENT GOALS Your staff are the foundation of your business, so it’s important you invest in their personal and professional growth. Implementing a training program will help upskill each individual, which in turn aids your business’s progression and performance. These areas are a great starting point for your yearly business plan. Once you have identified these, start to plan for the long term as well. Where would you like to be in three or five years? Implementing, actioning and measuring your yearly strategic plan can help pave the way for your long-term business success. ALISTER MAPLE-BROWN is the CEO of leading property management software provider Rockend. For more information visit rockend. com.au.

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Property Management Mentor

Natalie Hastings

ENOUGH’S ENOUGH: WHEN TO LET LANDLORDS GO A difficult landlord can be a strain on resources both physically and psychologically, but making a decision to fire them isn’t always easy. Natalie Hastings helps you decide if a client is worth keeping.

IF YOU’RE A property management professional you’ve been there. An insufferable, unreliable, disrespectful or unkind landlord has made your life, or the lives of your tenants or your team, so complex that you want to show them the door. There’s no doubt that working in property management as a negotiator and go-between can be deeply taxing emotionally, particularly if you’re feeling overworked, unsupported in your role or unappreciated by your tenants and landlords.

This emotional pressure-cooker can heighten your response to challenging clients, leading you to think that sacking problematic landlords would solve a whole lot of your troubles. But would it? There are certainly times that mismatched landlords should be ‘let go’. By acting decisively you will reduce stress on your staff, and you may also reduce the potential legal liabilities of your business. No matter what their monthly fee, there’s no point having a client on board who chews your PM’s time

and energy – particularly if they’re also neglecting their investment property and ignoring legislation. But rather than making a rash decision based solely on a peak of emotion, I encourage you to use systems and processes to help you come to a conclusion about a client’s suitability within your management portfolio. In fact, sometimes clients who are perfectly pleasant may be a poor match for your rent roll; you won’t know until you examine your numbers closely. Here is a simple series of

Are you only collecting $50 per month in fees for an owner you spend hours servicing? Rationally, you will need to increase that fee or let that owner go. Most property management software will allow you to export your fees into a spreadsheet, filtering them from high to low and making them easy to assess.

THE 80/20 RULE Whether a client is a good match for your rent roll is a fine balance of time used in management and fees taken. Let’s look at your high-

SOMETIMES CLIENTS WHO ARE PERFECTLY PLEASANT MAY BE A POOR MATCH FOR YOUR RENT ROLL; YOU WON’T KNOW UNTIL YOU EXAMINE YOUR NUMBERS. exercises to undertake if you’re unsure about keeping a ‘risky’ client, or taking on a client who doesn’t seem an ideal fit for your business.

CHECK YOUR FEES, CROSS YOUR TS Rent rolls are about income and building an asset; they need to add up. Each month, check the management fees collected for each property.

22 ELITE PROPERTY MANAGER • JUL-AUG 2015

maintenance landlords first: are they taking up 80 per cent of your time and efficiencies? Seek to lift their fees or, if that can’t be achieved, manage their expectations in terms of service.

DISCOUNTS FOR DEALS Are you or your listing agents discounting your rates in order to win business? Be careful with

this approach to building a rent roll. When discounts are used profligately, they ultimately bleed energy from your business and can lead to overworked, undercompensated teams. Too many ‘dirt cheap’ listings actually damage the overall value of your rent roll, too. Additionally, clients who are motivated by ultra-low fees have likely been with every agent and it won’t take them long to tire of you, too. Tread carefully here.

TOUGH CONVERSATIONS Sometimes a landlord can be brought back from the brink with a little tough love. If a landlord has a bit

of a bullying tendency, has been coddled by property managers because they have, say, more than one property listed with your agency, or simply don’t have a clear regard for professional boundaries or their role as a landlord, a sitdown meeting to establish rules may be in order. Tough conversations and plain speaking about their responsibilities, your responsibilities and the adequacy of their fees and expectations can resolve relationships that are going awry. You may even be rewarded with a higher fee or better behaviour from your client – or the certain

knowledge that they don’t belong within your business.

YOU GET WHAT YOU PAY FOR If you have long-standing clients who have grown comfortable with your business, they may occasionally ask for a loyalty discount. Whilst this is sometimes appropriate, say in the case of a client with multiple properties, a sense of responsibility for their property and a courteous, understanding manner, often familiarity breeds contempt. You’ll need to kindly remind these clients about the level of service you provide for your fee – and ask them

which part of your service they’d like removed in exchange for a cheaper rate. As the saying goes, ‘If you think it’s expensive to hire a professional, wait until you hire an amateur’. To sack or not to sack? By methodically addressing your desire to ‘fire’ a landlord by using facts, systems and processes rather than emotions, you’ll come to a rational decision your whole business can benefit from and feel good about.

NATALIE HASTINGS is the Managing Director of Hastings + Co. For more information, visit hastingsandco.com.au.

epm.eliteagent.com.au 23

Business Development Mastery

Tara Bradbury

SIX STEPS TO CLOSER COMMUNICATION Tara Bradbury reveals how rivalry between agency departments could be stopping you from turning local opportunities into a strong pipeline.

STILL REMEMBER my first year in real estate; it was a big eye-opener for me. Properties were selling for as low as $50,000 at one point, and I remember thinking I should really save a deposit and buy my first home. Then in no time prices exploded up to $150,000, $200,000 and $300,000, causing a massive buying frenzy. Sales consultants

The connection between the property management and sales departments was pretty much nonexistent at this time. Sales consultants saw the property management team as support staff, and they were expected to be the first to pick up any incoming call. The property managers also had preconceived ideas about the sales consultants, saying they

I KNOW MANY SALES AGENTS WHO DON’T HAVE CONFIDENCE IN THE PROPERTY MANAGEMENT TEAM; INSTEAD THEY HAVE EXTERNAL RELATIONSHIPS WITH DIRECT COMPETITORS TO PROTECT THE RELATIONSHIP THEY HAVE CREATED. were working flat out and some properties were being sold three or even four times within a 12-month period. I also remember having to walk down to the bank each day to hand over a black leather bag with anywhere up to $10,000 of trust money in cash. Looking back now, I’m surprised I wasn’t robbed, considering I left at the same time every afternoon, strutting down the street in my stunning high heels with not a care in the world.

were overpaid and lazy. Initially, as a 17-year-old falling into the real estate industry straight out of high school, earning $300 per week was fantastic! Many of my friends went to university in the city, but instead I chose to live at home, paid cash for my first car and believed I was truly living the dream. But after a while I started realising I wanted more; I felt that the real estate industry might not be the right fit for me and started considering other options. I was

24 ELITE PROPERTY MANAGER • JUL-AUG 2015

working in a very negative environment with agents who had been in the industry for over 20 years, embracing change was very difficult for them. Then at the age of 21 I was offered a position with another local real estate agency; I jumped ship and never looked back. For those of you who have followed my journey, my BDM career was with a local company, Wide Bay Prestige Properties, and as a mentor myself I now see how lucky I was to work with such a fantastic organisation. I now have the pleasure of working one on one with agencies across Australasia, sharing with them different rent roll growth strategies to help improve their most valuable asset in the agency. It still amazes me how many offices are missing the connection between the property management and sales departments. I see so many in-house opportunities leaking through the cracks and going to competitors every day, all because the property management and sales departments refuse to communicate with each other. So how do we improve the communication between departments and get the benefit of these opportunities sitting right under our noses? Let me share with you my sixstep process. Step One: Implement

weekly meetings for sales and property management together. If you have a fulltime BDM they should attend both meetings. Step Two: Discuss possible referrals that can be passed between both departments from conversations with clients over the previous week. Step Three: Provide appraisals between both departments to ensure our

clients see us a one-stop shop for all real estate needs. Step Four: Share changes and market updates between the departments to ensure the agency is seen as the investment property specialist in the marketplace. Step Five: Set up a partnership arrangement or some form of incentive for any

business passed between the property management and sales departments. Step Six: The director or principal creates a competition around referrals passed and business secured. Those who are competitive and money-driven will get right into the challenge. Many sales agents are reluctant to pass on the client to a property manager because they don’t have the confidence the property will be looked after. In fact, I know many sales agents who don’t have confidence in the property management team; instead they have external relationships with direct competitors and are letting

the business down to protect the relationship they have created. From my own experience I can guarantee that the following opportunities are not being followed up in your agency 100 per cent effectively. • Current landlords • Current tenants • Current tradespeople • Past landlords • Past tenants • Contacts on tenant application forms • Open home attendees list • Auction attendees list • Buyer leads through website or advertising • Past buyers • Past sellers

• Database follow-up – hot, warm and cold leads. It is vital that as an agency you form stronger relationships with your clients, answer all their questions and address their concerns. You should always build long-term and trusted relationships with your clients; they are entrusting you with their property, which is very important to their future. So if the relationship between the property management and sales departments is nonexistent in the agency, how do you think that will reflect in the marketplace? I encourage you to take the time to look at how each

and every member of your agency communicates with others. Are you working in a positive and productive environment? Or are you in a team that has a reactive approach to change and struggles to connect? Don’t let poor communication in your agency damage your brand in the marketplace.

TARA BRADBURY is the Director of the BDM Academy. She shares her business development ideas and strategies with property management BDMs and principals. For more information visit bdmacademy.com.au.

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A SUCCESSFUL AGENCY is one where a

well-managed and profitable property management portfolio ensures better relationships with landlords and happier, more productive staff. We learn more from PM Assistant’s National Sales Manager, Penelope Valentine.

an you provide an overview of what PM Assistant is? PM Assistant is an online mobile platform that streamlines many of the tasks faced by property managers, including receiving and responding to maintenance issues, arranging property inspections and managing rental payments. At its core PM Assistant is designed to create a more efficient and profitable agency. How will it improve efficiency and reduce stress for my property managers? The software streamlines many of the daily tasks faced by property managers, including receiving and responding to maintenance issues, scheduling inspections and managing rental payments. Property managing is a very time-consuming process and can be quite stressful. This system is designed to look at

property management tasks in a proactive way, rather than just reacting to the most urgent queries. Getting our rental arrears under control is crucial. How can this help? PM Assistant allows property managers to move arrears management from being a constant source of work and worry to a set of easy tasks using a powerful automated arrears policy. Easily modified to suit your agency’s needs, PM Arrears sends prepared emails and SMS messages automatically and prepares letters and notices for print without staff having to lift a finger. There’s even prepared phone scripts. It establishes a uniform and consistent process for interaction with tenants and for reporting to landlords. By automating your systems, you will be able to ensure your clients’ rental payments are paid on time quickly and efficiently.

26 ELITE PROPERTY MANAGER • JUL-AUG 2015

Can you describe how some of the daily tasks we face are streamlined? Using PM Maintenance can cut managing a simple property maintenance task from 30 minutes to five minutes. From initial enquiry from the tenant to final payment and reconciliation, PM Maintenance automates the full maintenance process. It allocates, remembers, measures and categorises all jobs, creating a transparent history of communication. Paper invoices from tradespeople are no longer required. PM Assistant allows property managers to move arrears management from being a constant source of work and worry to a set of easy to complete tasks using a powerful automated arrears policy incorporating reminders, payment requests and notices via email, SMS and letter. It establishes a uniform and consistent process for interaction with tenants and for reporting to landlords.

THE SOFTWARE STREAMLINES MANY OF THE DAILY TASKS FACED BY PROPERTY MANAGERS, INCLUDING RECEIVING AND RESPONDING TO MAINTENANCE ISSUES, SCHEDULING INSPECTIONS AND MANAGING RENTAL PAYMENTS. Is it easy to set up and does it work with existing platforms? It is easy to use PM Assistant alongside your current property management tool. The suite is fully integrated with REST and Console. Full training and unlimited helpdesk support is provided. What are the fees and charges involved? We charge a one-time set-up fee for the PM Assistant property management software suite; each module is priced on a perproperty-per-month basis, depending on the modules you require. All charges are fully transparent and confirmed upfront.

To find out more about how PM Assistant can help your business, please visit pmassistant.com.au or phone 1300 730 886.

28 ELITE PROPERTY MANAGER â&#x20AC;¢ JUL-AUG 2015

COVER STORY

BEYOND BUSINESS DEVELOPMENT HANNAH GILL FROM Independent Property

Management (IPM) in the ACT is no ordinary BDM. She is highly motivated, continually striving for excellence, career driven and winner of numerous industry awards, including the REIA Property Manager of the Year in 2014. Currently managing a team of 12 and a fortnightly marketing magazine while maintaining an enviable listto-lease conversion rate of her own, Hannah is surely one of the industry leaders of the future. Interview by Samantha McLean.

HE ROLE Of Business Development Manager (BDM) today is an absolutely vital part of property management business, focusing attention on revenue and rent roll growth. As a BDM Hannah’s list of achievements to date is very impressive. She maintains a 99.3 per cent appraisal-to-listing ratio (not including multiple listings where more than one property is pursued at the same meeting), manages 12 direct staff, handles the marketing side of the property management business and is continually looking to improve repeat and referral business strategies. The management fee she achieves on average is around one per cent higher than the ACT average, maximising both agency and landlord cash flows. She is a licensed real estate agent, the agency’s youngest shareholder, and will complete a management and leadership diploma this year, as well as being enrolled in the Australian Institute

of Company Directors’ course. When I met Hannah it was easy to see why prospective clients are drawn to her; she has a great energy and an easy going, down to earth manner at the same time. I start by asking her a bit more about IPM and how the business operates. She answers, “Independent is quite unique. We are a one-stop-shop, basically. We’ve got everything from PM, strata, sales. We’ve got projects, town planning, marketing, HR, finance. Everything you need for property transaction, we can offer. We have seven sales offices and one property management office.” The team of 12 that Hannah manages is made up of other BDMs, leasing consultants, admin and a graphic designer/ photographer. I note that having a designer on staff is quite unique to property management. Hannah responds, “We used to have the PMs take their own photos, and in our marketplace that was the norm. Then we employed a person who has a graphic design degree, but has

also done photography. So the overhead is minimal because it’s just salary. But with professional photography, we can obviously provide a whole different level of service for our clients.” As it happens, this salary is cleverly taken care of by another key part of IPMs marketing strategy, a professionally designed and printed magazine called Move. This magazine is also unique to the Canberra market and replaces the standard rental list. I ask Hannah how this came about. “The inspiration for the magazine came from a Melbourne agency who were doing something similar,” says Hannah. “I was looking again at the standard of our brand and what we want to be providing for our clients. The standard rental list is three or four A4 pages roughly stapled together; I just don’t think that cuts it any more. These days we are talking ‘tech everything’! If we’re going to be doing paper publications, let’s make it the best it can be. We do average anywhere from 150 to 200 properties available at any given time, so we’ve always got the stock to be able to produce the magazine, and it’s evolved from there.” The magazine is available through the seven sales offices and at sponsor shop fronts, local restaurants, cafes and businesses. “The way we’ve achieved this to the standard we have is that we charge our owners – obviously it’s marketing and advertising. We charge them for the costs involved per listing. Then we also have a number of our suppliers and tradespeople companies advertising in there. As a result, we’re looking at roughly $91,000 of profit in a 12-month period.” Apart from the magazine, what other

epm.eliteagent.com.au 29

methods do you use to attract landlords and tenants? “We have a referral program with our sales team that started in July 2013. For every listing they give us, they get a cash payment. In the beginning, we were running about 70 per cent sales referrals and 30 per cent from other business. But we thought we shouldn’t just be accepting these referrals; how can we actually improve our business so that the sales referrals are just the cream on top? So we’ve put in a whole lot of strategies to prospect and get out there in the market ourselves, and now we’ve turned that around we are running at 65 per cent from referrals other than sales. “For the sales guys, it’s important that we do have a good relationship. I spend a lot of time just getting to each of their offices and driving training for them. We go to every one of their monthly meetings, and it’s all about educating them about the value of property management.” Hannah continues, “We’ve got a pretty good team, and the sales teams are supportive of the program. I have recently put together a web-based referral system. They don’t need to email forms or anything. They can just submit things on their phone. We try to make things easy for the sales team, but then we also make sure that we follow through and deliver what we say we will. That builds trust for

them and for the clients.” So between publishing a magazine, creating other marketing programs, managing staff and staying on top of her game, how is it possible to fit everything in? I ask Hannah how she handles it all, especially balancing her own business development activities along with managing a team. “Yes, it can be challenging because you do need to give enough time to your team so they can grow and they can do their jobs better, but I’ve still got my targets that I need to meet. I try as much as possible to work to a structured ideal week. Most times that does work, but then there will be times when you go out to a conference, or you go for a course, and it throws everything a bit. In an ideal world, I’d prefer to be in the office as much as possible for my team, because even though the listings are ticking along nicely at the moment the team still need to feel supported.” Next, I want to know - as many other BDMs would want to know - what her secret is to the perfect listing presentation, and how she maintain such a high list-tolease conversion rate. Hannah replies, “I think the key thing is people get so hung up on what their points of differences are. They might have a great piece of technology or a great service guarantee, and that’s their whole pitch! My view is that it doesn’t matter what we can offer. It really just depends on what the client is after. By qualifying and asking direct questions and listening to what they need or what they want, my pitch will just completely change to target what I have heard from them.” She continues, “If you do this, the prospect can relax a bit as you can put their concerns at ease. If they come to me and say, ‘I’m really worried about my rent arrears as I’ve just had this horrible experience’ and I say, ‘Don’t worry, we’ve got this great technology and we’ll send you your statements and you can log in and look at them online...’ that doesn’t actually help them. It’s entirely irrelevant to what their concerns are. I think your pitch or your presentation just needs to be adapted for what the client needs.

30 ELITE PROPERTY MANAGER • JUL-AUG 2015

BRETT PASCOE

COVER STORY

“Not only that, no two people are the same. I think it’s crazy that someone pulls out a folder or an iPad and just clicks through it for the sake of clicking through it. That doesn’t necessarily meet someone’s needs.” Her passion for the industry is clear and I ask Hannah what she has enjoyed most about property management. “Well, I started in property management so I do understand that side as well as the BD side. For me, I think what I am passionate about is the chase; to be able to convert a single listing or a whole development that a client’s holding is seriously exciting. I like it because it’s an opportunity to build rapport and relationships with people and really get to know them. It’s even more satisfying when you see something realised that you started from scratch. I’ve recently converted a client who used another agent; we got our foot in the door initially, and now we’re managing half of one of his developments. For me that’s really rewarding. I know that that’s future growth for us as a business.” Part of Hannah’s competitive nature and team spirit possibly comes from her love of sport; she has played AFL at state level, and is also a member of the SES. “Yes, I’ve played Aussie Rules for about eight years now, and played for the state and played in national tournaments up in Cairns and things like that; lots of fun. I also surf whenever I can get down to the coast, which is not too often, unfortunately. What sport has really taught me is the team culture. I think it’s so important to have the right attitude and the right culture. I’m a big believer in doing all the little things that add up for the team, because if you’ve got one person who is not a team player it affects everyone. That’s really something I

“THE STANDARD RENTAL LIST IS THREE OR FOUR A4 PAGES ROUGHLY STAPLED TOGETHER; I JUST DON’T THINK THAT CUTS IT ANY MORE. IF WE’RE GOING TO DO PAPER PUBLICATIONS, LET’S MAKE IT THE BEST IT CAN BE.” try to instill in my team as well.” What advice would you give someone who wanted to pursue a role in Business Development? Hannah smiles. “Over the years I’ve now learnt to make a point and then be quiet. Or ask a question, be quiet and listen to the answer. When you close, just ask and stop talking. I used to ask and then I’d keep talking! I never actually gave people an opportunity to answer. So I’ve learned over time that to say your piece and then shut up is way more powerful and it does create an impact. “The other thing,” she says, “would be to put really good communication trails and follow-up systems in place, because the busier you get the more you need them. That way you don’t forget to follow up or touch base, even when you’re out of the

office. If you don’t deliver on what you promise in terms of communication then you waste your previous effort, because you lose respect so quickly. By having those really structured systems it takes the work out of it for you, but it also takes your business to a whole new level.” What do you see in terms of the market for Canberra in the next 12 months? “We’re lucky in Canberra. There is a lot in the media about buyer nervousness and the market dropping back. We do have the normal ebbs and flows in our market, as any market does. But we run consistently low vacancy rates, about two per cent max. Our average rents sit at around $450 per week or so at any given time. So the market is steady and the listings are there. We’re averaging between 60 and 80 new listings

a month, so there is sufficient stock. “Canberra itself is a huge growth area. At the moment we sit at about 3,200 managements. By the end of 2017, we’ll probably be sitting at about 4,500 with developments settling. There is a huge amount of builders’ stock in the pipeline. Much of that tends to be investment purchases. I think it will be interesting to see what effect the Chinese investor market might have on our market.” Career highlight so far? “Winning the REIA award in 2014 was pretty exciting. Like everyone, I do tend to have a little bit of self-doubt at times, and it was really rewarding to know that what I was doing was recognised at a national level. Aside from awards, I think the career highlight for me is actually an ongoing thing. I simply love what I do, and when I get a great listing or when I see one of my team members achieve one of their goals, that for me is the most rewarding part of it. I think it’s fantastic when you see other people grow and succeed.”

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PANEL DISCUSSION

THE CHALLENGE OF CHANGE

WHAT ARE THE BIGGEST challenges facing property managers right now? Console

and Elite Property Manager invited five leading professionals to comment on operational aspects, customer service and legislation. They discussed how these things affect their businesses today, and how these things may impact in the future. Chaired by Fiona McEachran of Console, this is what they said. OUR PANELLISTS

TROY WOODWARD JEFF JONES REAL ESTATE

JESS KINDT PLACE ESTATE AGENTS

Troy started his real estate career leasing residential property at one of Brisbane’s biggest and most successful agencies. He became a property manager with Jeff Jones Real Estate in 2012 and has worked in almost all areas of the business. Troy’s positive energy and focus on customer and client service yields results. His creative solutions and professional demeanour sees Troy always seeking to better himself and lead his team to achieve the best possible results.

A multi-award winning agent with an extensive background in property spanning almost 13 years, Jess is Property Management Liaison & Team Mentor for Place Estate Agents. She is committed to providing staff and business owner support and regular staff training, and is directly involved in providing strategic advice on the structure of Place rental departments, ensuring fantastic office cultures are maintained and encouraging individual job satisfaction and staff retainment. Jess is a strong asset to the Place team.

32 ELITE PROPERTY MANAGER • JUL-AUG 2015

KAREN GEORGE RICHARDSON & WRENCH CABOOLTURE

LAURA VALENTI SOLUTIONS PROPERTY MANAGEMENT

MICHAEL PAPANTONIOU LIST PROPERTY TARRAGINDI

As Director of Richardson & Wrench Caboolture Property Management Department, Karen is a licensed real estate agent with significant industry knowledge. Her directorial responsibilities include regular analysis, evaluation and reporting. A skilled and experienced trainer, her leadership and presentation skills extend beyond the region. Invited by her peers to provide state-wide professional development conferences, Karen enjoys supporting her immediate team members, as well as her associates within the wider real estate industry.

Laura is the Managing Director of Solutions Property Management in Burpengary, Brisbane, QLD. She began her real estate career in 2002, and she and her husband founded Solutions Property Management in 2008. Laura now oversees two offices with 10 staff, managing over 700 properties in the greater Brisbane area. She is the ultimate perfectionist who constantly looks to improve procedures and systems, in order to achieve the ultimate in professional property management service to her clients.

Michael is the Principal of List Property Tarragindi. When he opened the independent agency in 2010 it allowed him to combine his passion for property with his extensive business knowledge. List Property is a growing agency with an expanding property management and sales division. Michael has held engineering management roles within major projects across Queensland and has his own Engineering Consultancy.

Fiona McEachran: How has the landscape of PM changed in recent times? LV: I believe that there are more specialist property management companies appearing in the industry, as opposed to the traditional sales-plusproperty-management type of offices. I think this is not only because of the demand for a more specialised service, but also due to increased legislation leading to more challenges in certain areas of the industry. MP: I agree; there are a lot of boutique agencies now just focusing on property management and there are a few agencies that don’t want to deal with the property management side at all due to the legislative burden. JK: It’s not just specialised property management companies, but also specialised positions within those companies now. Once upon a time you had a property manager who would take care of your letting and be your first point of call as a new client, and he or she would take care of your maintenance. Now that the legislative requirements have increased, we’ve had no other choice but to divide all those tasks up, so that

property managers are now taking care of the property (and legislation); you’ve got BDMs taking care of new clients, you’ve got leasing consultants out there and also there are lots of offices that have assistants helping out the various roles. On the whole, it actually feels like managements per property are decreasing to handle the increased workload from legislative requirements. KG: I think the other part flowing on from that is education. We spend a lot of time and effort in educating ourselves to make sure that staff are well informed so that they can deliver that service. Because there is new legislation, and because our business is changing, you really need to invest in your team. JK: And you can’t ‘fluff it’ now, either. There is too much access to information and everybody has online access to everything. Gone are the days when you could have someone on the team who wasn’t aware of all the legislation. I look back and in 2003, when I started, I didn’t have a lot of experience or training; but I still did my job well because of the customer service factor. Now it’s gone in a completely different direction.

FM: How has this changed the role of the principal in the office? LV: I’m not sure how a sales-focused principal could manage a property management department, for the reasons we’ve just been talking about. They would need to have a very, very reliable manager for that part of the business. I sign-off on the trust account balance sheet every day. I know exactly what’s happening, and would be very scared if I didn’t! MP: From a principal’s point of view, there is a lot more on us. I manage both sides, sales and rent roll. Knowing what your staff are doing in both sections is important, but it takes more effort to manage the PM side of the business because that is where the majority of the compliance aspects are. LV: And a lot more risk, as well. FM: With these changes are you trying anything new in terms of management processes, or in terms of marketing or presenting yourselves? TW: Safety is a big issue. We are looking at ways to assist landlords in becoming aware of safety issues in properties, and we look to partner with other companies that can help and make owners aware of these issues too.

epm.eliteagent.com.au 33

PANEL DISCUSSION

JK: I agree with Troy. In our area there is some business we just don’t take on, because the property is not in a condition that we think we can successfully manage professionally. And I think you have to be honest. You have to be able to say to those clients that the property needs work. If they are not willing to do that, then it’s not a relationship we should enter into. FM: What are the trends with respect to management fees - have they increased or decreased? LV: Ours have increased, dramatically actually. But our overheads have increased too. We do educate our new owners and

advise them of this because we need to assure them that they’ve got the very best working for them and their property. And why wouldn’t they pay? We use a common analogy: you’re not going to buy a BMW for the price of a Barina. We also charge for additional routine inspections if it’s more than three. I remember, 10 years ago, inspections were just a simple report; but now everyone wants photos and some expect videos. Someone has got to pay for that. We also invest in software so that we can go out and do these inspections on our mobiles. MP: I think with commissions you can charge the proportionate commission to

34 ELITE PROPERTY MANAGER • JUL-AUG 2015

the value that you are adding. And you have to educate the owners, because a lot of the time they don’t understand what we do. TW: There are risks associated with going with that cheap option, as there is in everything in life… MP: And the risks are quite large in some companies. I’ve heard of owners being without rent for six months because their properties weren’t leased or the tenants weren’t paying. So yes, educating owners on all these aspects is important. FM: What are the best ways to go about educating owners? LV: I think it starts at the sign-up process; there are a lot of companies that are hiring BDMs to take care of this. But the BDM also needs to have experience. We don’t promise anything that we know we’re not going to deliver, or anything that is not in line with the legislation. MP: You must have a great relationship with the owner and that starts with the property manager; the owner having trust and confidence in what they say is a very important step. Good communication skills are essential to deliver the right messages. JK: We have developed other methods, because in a city market we have had to adapt to the fact that face-to-face is starting

to become less frequent. Even people that are local are time poor, so we put together something electronic that is informative, covers us as an agency but is also attractive to the client. But it’s a whole marketing mix that comes into play. KG: It has to be flexible for every property. We still meet most of our owners face-toface. They still walk into my office, trust my family who have been there for 21 years and say, ‘Here’s my property. Look after it as though it’s your own.’ They know our systems are in place. I think there is a wrong perception out there that investors, even interstate or overseas investors, only want to know about the numbers. They don’t. If they were all about the numbers, they wouldn’t have a property manager; they would just collect the rent. FM: Task or portfolio? Which is better? LV: We do part task and part portfolio; we have property managers who take care of the main tasks, like list renewals and inspections – they have the main communication with the owner. We have a dedicated leasing consultant who just shows the properties and finds tenants. Our office manager chases the rent and does disbursements. That set-up works for us. TW: We are portfolio-based, and our managers are the single point of contact. We also have a dedicated leasing team, a dedicated trust team and a dedicated business development team. So we are split up into different areas but have a single point of contact for owners and tenants. MP: The owner generally only wants to contact one person, and that one person should know everything about their property – or at least come back to them with the information. LV: It’s just crazy to expect one person to know how to market and take beautiful photos and inspect a property and be the best person to chase the rent. One person can’t usually do all that! FM: What are the biggest challenges you are facing right now? KG: Our biggest challenge is definitely technology, and keeping up. Technology, for us, is really important to make sure that we are abreast of new information and new ways of doing things. JK: I think it’s the opposite for us. We’ve invested so much in the last eight to ten years in brand new technology. My greatest challenge, at the moment, is actually taking us back a step and going back to customer service, because I think that that’s really what’s going to succeed

in the industry. At the moment, I think, it’s very easy for people to jump on board with these cool apps and technology, SMS and email; but I don’t want our staff being complacent or reliant on or hiding behind text messages, emails and apps. I want them to deliver service, because without that we will lose business. FM: What do you think is in store for the future? MP: I think it’s a mix of both customer service and technology. Technology, currently, is growing rapidly. When you look at the portals and other aspects – for example, VPA on the sales side of things – perhaps we will start to see more property management companies looking for paid advertising for rental properties? LV: I’d like property management to be more professional. I don’t want to see someone do a five-day course with one day of that being property management; how to fill out a Form 6 and here you go, there’s your million dollar, billion dollar portfolio, go and manage it. We have to provide all the training from the

“IT’S JUST CRAZY TO EXPECT ONE PERSON TO KNOW HOW TO MARKET, TAKE BEAUTIFUL PHOTOS, INSPECT A PROPERTY AND BE THE BEST PERSON TO CHASE THE RENT. ONE PERSON CAN’T USUALLY DO ALL THAT!” beginning, which is fine. It just drives me crazy when you see other agencies and you know their staff are not trained and the principal doesn’t mind what happens in the property management department. It makes us all look really unprofessional. A good property manager is such a capable person. We do anything and we need to be recognised for that, including being paid what we are worth!

epm.eliteagent.com.au 35

KPIs A

PRODUCTIVITY

MORE THAN JUST A NUMBER

KPIS MAY BE ESSENTIAL for productivity and growth, but

Cathie Crampton highlights how setting targets can actually help to infuse your team culture with energy and passion.

NY SEASONED operator knows KPIs and the role they play in supporting and engendering a successful business. I would suggest that KPIs create more than that; they are also the fundamental platform upon which we can all rest, relax and put up our feet. Setting KPIs can not only boost productivity; they can create a culture of energy and enthusiasm among the staff. Property management is no different to any other business. It’s very hard to create the ideal future state unless you have a handle on the current state.

WHAT KPIS SHOULD BE MEASURED? To a landlord, the critical elements remain rent being paid on time and the property being maintained by the tenant. Thus arrears management and routine inspections are the first two KPIs that need to be measured. From this, you could then move to repairs which would considerably reduce your complaints – for example, no work orders outstanding over 14 days, and rent reviews, which will improve client yield and your management revenue. Finally, tackle expired leases. This gives you and your client the maximum control over the tenancy. A HEALTH CHECK REPORT FOR YOUR AGENCY When it comes to crunching the numbers, you need to compare what you are currently achieving against your new KPIs and what it is you aim to achieve in each area. This health check report will highlight the condition of your business; depending on how your numbers look against your KPIs, you may either be at a health spa or in intensive care! Your KPIs should be set internally; perhaps something you agree on as a team, framed against your budget and of course against industry averages. The latter may be published sources or something you glean from informed discussions with credible sources. Essentially what you have then is a platform indicating details such as number of managements, commercial arrears (dollar value and percentage), residential arrears (same), vacancy rate, overdue tenant invoices, overdue inspections, work

36 ELITE PROPERTY MANAGER • JUL-AUG 2015

orders exceeding 14 days, expired leases (percentage) and overdue rent reviews. Break each one down by location or pod and provide the information as a chart. It is important that not only do you reference everyone’s results, but that they are transparent. Post them up on your whiteboard, publish on email and reference them in team communications. Get some fun stickers and really work it into your team environment. For example, in our Lane Cove office we have a ‘superpod’. They have a Superman insignia on

THE KEY TO CREATING CULTURE IS BUY-IN. KPIS ARE MERELY A WINDOW; THEY ARE NOT THE ANSWER OR THE RESULT. HOW YOU USE THE INFORMATION IS THE CULTURE KEY. all their communications, wear Superman T-shirts (presented to them at a team event of their making) and take enormous pride in all their results. From the PMs’ perspective, having KPIs helps them break down their role, have clarity and feel as if they are more in control in what sometimes seems like an uncontrollable job. It also helps pods work as a team and engages all members to function together to reach the targets.

CREATING PASSION AND ENTHUSIASM So now you’ve set your KPIs and got your stats, how can you use them to create a culture of passion and enthusiasm? Remember, the key to creating culture is buy-in. KPIs are merely a window; they are not the answer or the result. How you use the information is the culture key. Create energy around it; talk about it at one-to-ones, weekly team meetings and group meetings. Publish it to the team in an energetic format. Believe it and deliver with authenticity. We believe that transparency is normal; there is no judgment. Above all, don’t hide it. Set up interoffice or inter-team competitions. Reward the achievers with lunch out or perhaps a jet boat ride; remember to post those to your team Facebook page or in your office for momentum. Post on a whiteboard, make it a focus of the day and wrap your

interactions around it with equal degrees of empathy and expectation. Perhaps make it a competition for PM of the Year, with a prize like a weekend away. We publish ours each month and then at our EOFY we present a trophy for the winner with their prize – it is hotly contested!

BUT WHAT ABOUT REAL DELIVERABLES? Creating culture will get you those real deliverables! You cannot be everywhere and nor can your team, so focusing on the culture will minimise the requirement for reactive management. When your team is engaged, they will take pride in their results and genuinely see them as a reflection of their identity. They will challenge you, and this is great because it means they are treating their role and your business with pride. LINKING PRODUCTIVITY TO EARNINGS You may wonder about real-time activity and real-time earnings for a team member or yourself. A key way to engage the team is to link productivity to their earnings. Providing incentives means they share in the reward and are further connected to the success of the outcome. For example, a team member could earn a bonus by running excellent portfolio statistics, such as in the example below (percentage can be varied depending on your budget) and could further increase their earnings by creating solutions beyond day-to-day excellence, such as the identification of new leads. EXAMPLE KPI STRUCTURE Available incentive pool 1. 1 % of management fees for the quarter 2. Identification of a new business lead that becomes a new management: $300/management. All the following key performance indicators must be met to qualify for the above incentive: • Overdue rent reviews less than 2% • Arrears at less than 1% (of total monthly rent due) • No preventable lost managements per quarter • No outstanding routine inspections • No work orders over 14 days Some caveats • KPIs must be met on a monthly basis to qualify for the bonus • Bonus is calculated and paid quarterly • Each preventable lost management in excess of the above number will reduce the bonus by 25% (and future bonus

amounts if current bonus is reduced to nil) • Any contingency/compensation payments that are made to a landlord or tenant will be deducted from current and future incentive payments. Example calculation assuming all KPIs are met on a monthly basis Non-pod structure with management fees of circa $22, 000 per month (135 managements at $615 per week average rent with average management fee of 6%). Property manager identified three leads from their portfolio that became new managements during the quarter. Thus 1% x $22,000 x 3 months = $990 plus 3 x $300. Total quarterly incentive $1, 890.

BENEFITS ALL ROUND The benefit of this to you as an principal or leader is that you are maximising your revenue and creating a culture that is about excellence on all levels. You will also find that your complaints level will decrease, leaving your team members with more capacity to focus on what it is all about: building healthier relationships and sustaining themselves in property management. As buy-in increases, your team members will also challenge their results (a very healthy measure again of their engagement), address every one of these with positivity and reference their results against the KPIs you have agreed are your Team KPIs. You can also extend this by applauding this excellence – which is just excellent KPI deliverables that all have a points system – with something like a ‘PM of the Year’ award, as I mentioned earlier. On top of that, the commission outlay is outweighed by increased referrals from both your sales team and your client base: retention and revenue. When the average management is worth $7,000 to $8,000 on your balance sheet in metro Sydney, this is substantial. KPIs implemented only for the sake of visibility will not engage; they will undermine your team and affect quality tenure. But KPIs that are executed with true vigour and as the pathway to a fun, calm PM space will be the absolute pillar for your business success. CATHIE CRAMPTON is the GM of Property Management (Smollen Group) McGrath Estate Agents. Cathie will be speaking at ARPM 2015; for more information and to book tickets visit arpm2015.com.au.

epm.eliteagent.com.au 37

SPONSORED

THE MOVING CONCIERGE Support Services to Streamline a Property Manager’s Week LOOKING TO DEVELOP relationships you can rely upon with a team of agent-focused

property industry contractors? We present a select group of experts who have built their respective businesses around the timely, courteous and professional delivery of specialist services – many of whom are ex-property managers themselves.

T CAN BE TOUGH out there for a property manager. At any one time, there are multiple demands upon your attention: a would-be tenant calling to see how their application has fared, a tradie wondering how to best access a property for maintenance, rental arrears to chase up, potential landlords to prospect and trust accounts to balance. And that’s just on a Monday morning. Oh yes, complexity is par for the course when you’re in property management, with the industry’s best PMs tirelessly looking for new ways to streamline their systems and increase their productivity. Maxed-out portfolios and full ‘ideal weeks’ can leave little room for improvisation in a PM’s diary, an issue which is further compounded by ongoing in-depth negotiations between landlords and tenants over maintenance and sometimes frustrating discussions with subcontractors. Productive relationships with reliable subcontractors can make a property manager’s life (and workload) substantially easier – with checks and balances in place to ensure quality of delivery and accountability.

DOES THE PROPERTY NEED A CLEAN? Debbie Holland, CEO of Cleaning Support Services, has personal experience of property management needs. “Having been in the ‘trenches’ as a PM myself, I know the stressors that can really tip landlords, tenants and managers over the edge. That’s how Cleaning Support Services came to be – a response to a lack of service and reliability in the property subcontractor category,” she explains. “We’ve all been in a crisis situation with a high net

worth client – a landlord with multiple properties under management, one of which has been left in an appalling state. The landlord is naturally furious, demanding multiple quotes to address each issue – each to be executed ASAP. This kind of event can overturn a full week of work – chewing up time and taking up mental space with the worry of losing the landlord’s other properties.”

Dire though it seems, Cleaning Support Services can turn such a high-stakes situation around within 24 hours with a complete solution (including cleaning, gardening, maintenance and more) that guarantees superior service delivered in a timely and cost-effective fashion. “We work with a select array of real estatefocused contractors – who (after having undergone a stringent qualification and screening process) deliver high-quality services to streamline any property manager’s ‘disaster’ maintenance list.” Debbie has managed to achieve a streamlined solution for PMs using her ‘Way Easy’ system, which minimises the use of water and toxic chemicals – a true point of service difference for your

38 ELITE PROPERTY MANAGER • JUL-AUG 2015

landlord and tenants. Not only will your clients’ wallets breathe a sigh of relief – the environment will thank you, too.

For more information contact Cleaning Support Services – cleaningsupport. com.au tel: 1300 550 720.

CONCERNED ABOUT YOUR TENANT’S ACCESS TO THE BASICS ON MOVEIN-DAY? Mike Gibbons, Managing Director of eMove, helps property managers assist their new tenants with a simple gas and electricity connection solution, ensuring their home is warm and bright from the moment they arrive. As any experienced property manager knows, an unpowered property will not only begin a tenantproperty manager relationship on a sour note; it may also result in inappropriate billing of the current or former tenant, resulting in further time on the phone amending the issue accurately with utility providers. eMove reliably provides for speedy utility connection, paired with heavily discounted energy bills, offering

your tenant the comfort they deserve whilst giving you peace of mind. There’s something in it for PMs too, as participating property managers and real estate agencies benefit from eMove commissions and other incentives for using their service. eMove also prides itself on thoroughly following up with tenants, removing the additional worry (and phone calls!) that property managers face when tenants are not contacted within the agreed time frame.

For more information contact eMove – emove.com.au tel: 1300 306 522.

DO YOU HAVE A CARPET DILEMMA IN A PROPERTY UNDER YOUR CARE? Daniel Brunes, CEO of Carpet Cleaning Kings, knows all about rejuvenating carpets under hair-raising conditions and time constraints. “We work with individual landlords and body corporates, having recently helped restore a sevenstorey apartment building which was completely flooded due to blocked plumbing! That’s a lot of wet carpet to dry – yet dry it we did.” Having an experienced carpet cleaner on call who can offer complex bacterial chemical treatments (paired with knowledge of the relevant

legislation in this area) certainly comes in handy if you’re a property manager. Do you have ‘last minute’ requests some contractors simply won’t accommodate? Carpet Cleaning Kings understand urgent requests and take all steps to accommodate their clients; being supported by a large labour force of carpet-cleaning experts, their response time is second to none. “Fine-tuning our services with systems and processes means that we are available and suitably prepared to handle the most complex carpet-related work orders – in fact, we guarantee it,” says Daniel.

For more information Carpet Cleaning Kings – carpetcleaningkings.com.au tel: 1300 700 075.

WANT TO IMPROVE YOUR OCCUPANCY RATES? Develop a relationship with a trusted removalist. James Russell of City Move knows just how important the relationship between a property manager and a removalist can be – allowing for emergency moves and taking into consideration individual body corporate rules. “Always ensure that any removalist business you recommend to clients is accredited by AFRA. This industry accreditation body ensures all

service City Move suggests you have in your ‘removalist solutions’ arsenal. Makala Ffrench Castelli, Marketing and Corporate Affairs Manager at National Storage, offers her advice on the topic of decluttering: “Many real estate agents and property managers recommend decluttering prior to marketing a property for sale or rent to show the property in its best light. Removing excess furniture and packing away personal items creates space and allows the focus to shift to the property, rather than the current tenant’s personality.” Surprisingly cost-effective, customers are often surprised at how little room is required for their belongings in storage; what would normally clutter a double garage can fit into a quarter of the space when properly stored. With over 80 National Storage centres offering tailored storage solutions and services to over 30,000 customers across Australia, Makala recommends searching for local storage partners who

PRODUCTIVE RELATIONSHIPS WITH RELIABLE SUBCONTRACTORS CAN MAKE A PROPERTY MANAGER’S LIFE (AND WORKLOAD) SUBSTANTIALLY EASIER – WITH CHECKS AND BALANCES IN PLACE TO ENSURE QUALITY OF DELIVERY AND ACCOUNTABILITY. its members have their insurances and police checks in order – a feat nigh on impossible for busy property managers to triple-check each time.” Should there be any quality issues with the removalists you recommend, AFRA-accredited businesses are liable to lose their hefty security bonds; another removalist quality-check mechanism to help streamline your day. As with all business decisions, City Move recommends shopping around before settling on a key removalist referral partner. Look beyond the top five national removalists to other businesses who appear to provide the same level of service while charging considerably less.

For more information contact City Move – citymove.com.au tel: 1300 729 994.

HAVE A PROPERTY THAT IS PROVING DIFFICULT TO LEASE OR SELL BECAUSE OF PRESENTATION ISSUES? Clutter can be a real barrier to new tenant or buyer appeal. Maximise your client’s chance of a swift leasing or sales result by offering temporary storage to address presentation issues – another

offer secure premises and professional management. The National Storage website is also a great resource, with online tools and tips for packing, storing and taking the stress out of moving for your clients.

For more information contact National Storage - nationalstorage.com.au tel: 1300 302 982. All participating businesses mentioned here would like to offer readers of Elite Property Manager a special for making contact and creating local partnerships. When reaching out, please mention this article. We look forward to hearing from you.

epm.eliteagent.com.au 39

MARKETING

How can you thrive in a tough leasing market?

WITH VACANCY RATES creeping up across the country, property managers have been

seeking help – not just to find tenants for their owners – but to learn to thrive in what feels like a tough market. If you are sensing a change in your area, there are plenty of things you can do to turn it around. Story by Hermi0ne Gardiner.

UPPLY AND DEMAND; a property is only worth what someone is willing to pay for it. The challenge is that, for years in the most part, rents have continued to rise gradually. Owners expect the same or higher rent each time and, when a vacate notice comes across our desks, we often simply list at the same price or higher, because that’s what we’ve always done – often without detailed thought on the current market, such as: • What is available and comparable? • Current vacancy rates and days on market? • What have properties leased at, not just what is advertised? • What newer developments have affected the price of this property? • What sort of tenant demand is there in this area for this kind of property? • Has the sales market had an impact on people choosing to buy instead of rent? Whatever the reasons, if we want to get these properties leased faster and minimise the risk of the landlord taking their business elsewhere, I believe we need to start making it our job as the owner’s property manager to be far more across all of this knowledge. To support them in making smart investment decisions in pricing from the start of the leasing process, well before the property becomes vacant. We also need to learn how to share this

knowledge with them as the industry experts and work alongside them, not just tell them what they should do without educating them and then wonder why they don’t listen. Ideally, we should be educating them on the true property value; not just at the vacate phase, but regularly throughout the tenancy so there are no rude shocks or surprises, making our job easier when the time comes. How we do this depends on the data and statistics we track from both within

Here are some things we need to remember to make our lives easier when trying to avoid high vacancy.

SHIFT YOUR MINDSET • We are interpreters of the market; we don’t dictate the market. When speaking with owners we must remove the fear they are going to blame us, get upset or leave us. It is not our fault if the market has changed. • Shift our language to become their partner in property management. Change your

WE ARE INTERPRETERS OF THE MARKET; WE DON’T DICTATE THE MARKET. WHEN SPEAKING WITH OWNERS WE MUST REMOVE THE FEAR THEY ARE GOING TO BLAME US, GET UPSET OR LEAVE US. and from outside our own office. Weekly, monthly and annually we should be tracking market data for our core area, such as averages across days vacant, days on market, active tenants searching, average rents, increase or decrease on past rents and properties available. If we track this data, even when it is a great market and things are leasing well, it will form an important comparison point for those tougher times. It could even provide a point of difference for our property management service.

40 ELITE PROPERTY MANAGER • JUL-AUG 2015

language and dialogue to ‘we’ and ‘us’, not ‘you’ and ‘yours’. Shift the dialogue from ‘rent reduction’ to ‘rent adjustment’.

BE THE EXPERT • Track statistics internally – work out what needs to be tracked daily, weekly, monthly, and annually. • Share with the team – determine how we share and distribute this data with the team, not just the leasing consultant. Property managers, new business and even sales may need to know too.

been vacant over two weeks, increase that to four times a week. If over four weeks vacant consider being on the phone daily.

BRING THE OWNER INTO THE JOURNEY • Where possible, take the owner online, ask them to pretend they are a tenant searching in that price bracket and location and get them to tell you what they see. • Invite the owner to the open for inspection; it can be quite powerful to stand in a quiet apartment for 20 minutes with no one coming through to show what the market is really like out there. BREAK IT DOWN • Provide the owner with a cost analysis of rent adjustment vs staying the same over a 12-month period and what that difference means in annual income. • Share a case study of another positive result in shifting the price, or a negative result in not adjusting the price. Social proof can work wonders. • Educate externally – teach our owners about the market with newsletters, comparables and leasing reports.

OVERCOME BARRIERS TO LEASING • Condition of the property: can’t get the owner to update the property? Help your owners to arrange a payment plan with contractors, suggest re-finance, and remind them we can deduct from rent. Next time, plan ahead and help the owner budget in advance for upcoming renovation works. • Ensure marketing has professional photos, good copy and stays at the top of the search results. Tenants rarely search past page one, and often won’t enquire if they can’t find the information they need. PRICING • True pricing strategy from vacate notice – if the property is not worth what it was last time, give owners the truth about the market and don’t sugar-coat it. Help them make the best decision to ensure minimal vacancy. • Offer pricing options – for example, $550 to get it leased fast with minimal vacancy, $600 for an intermediate result and $650 to be waiting longer for the right tenant with a risk of higher vacancy. • Pre-frame price adjustments – if you are pricing above the market, agree what the next price adjustment will be and by

when. Do this in advance, and it will take less time convincing them later. • Pre-advise of market shift – when you see a dip in enquiry levels, share the prediction instead of waiting for the Saturday open and having no one show up.

PROACTIVE LEASING • Old school marketing – this can still work to capture passive renters in the market, those who aren’t looking online but could be interested in the property in the local area. For this reason letterbox drops and signboards still work. • Treat tenants like buyers – keep a tenant database and work it. If you use an online booking system, use the data captured from this and get on the phones; don’t just wait for the tenants to book. • Offer flexible viewing times outside of the set open for inspection on Saturdays. • Consider how you are promoting through e-marketing and social media – Facebook offers great targeted marketing to the desired target market. ONGOING UPDATES • Send a weekly report to educate the owner. For each listed property, consider providing statistics on days vacant, days on market, page views, enquiries, inspections, applications, price adjustments and lost rent while vacant. • Don’t rely on email. Get on the phone at least twice a week. If the property has

LAST RESORTS • Where possible, get face to face for a meeting; if they are not in your area, request a Skype meeting. • Director call. Get the manager or director to call and let them know that as an agency we are concerned that their property is not leasing. Sometimes the senior perspective can help get them around, and show the seriousness of situation. • Ask the owner ‘What more do you think we could be doing to lease the property?’ The last one is my favourite, but of course only to be asked if you are sure you have done everything you can do to get the property leased. Now, after reading this, you can ask yourself: Have you really done everything?

HERMIONE GARDINER has been part of the real estate industry for over 11 years. From Residential Property Management to Executive Leasing, New Business and Team Management – she has successfully managed a broad range of clientele and successfully developed and delivered on New Business Growth plans and concepts. Hermione is also part of the Real + team and will be speaking at ARPM 2015. For more info and to book tickets visit arpm2015.com.au.

epm.eliteagent.com.au 41

PM Q&A

Scott Jones

PRD Nationwide Wagga Wagga

When did you start in real estate, and what made you choose a property management career? I started in December 2008, so that’s coming on for eight years in the industry. Having completed my HSC, I was unsure what I wanted to do. I had a family friend in real estate and that ignited my interest, and I started working for Elders Breust in 2008. As a property manager, what are the biggest challenges you face? In Wagga Wagga we have a varied client base, with properties located in vastly different socio-economic suburbs. Some areas are harder to manage than others and take up much more time than those clients with brand new houses in newly developed suburbs. Our portfolios are spread over several suburbs, so we have to be very strategic when planning inspections and organising our time. What makes your agency unique? Our agency has over 100 years’ combined experience in dealing with all facets of the real estate industry. We cater for property management, residential and industrial sales and commercial management. What do you love about property management? I enjoy building relationships with clients; being born and bred in a country city often sees you dealing with clients whose inner circle of family and friends you already know. It really is a close-knit community, so having a good relationship with your property owners is very

need to have early and get them out of the way, rather than avoiding them and putting off important issues for further down the track. What are your predictions for the real estate industry for the next year? Research recently suggested that Wagga Wagga has superior rental yields to those offered by the capital cities. More and more people are looking to invest in or move to regions like ours. There’s so much to attract people important, especially when word of mouth is usually the leading source of new business contacts and referrals. What are the key features in maintaining healthy relationships with landlords and tenants? I would say communication and building a rapport with your owners is vital. Once trust is established it will make everything so much easier. What are your most important values? There are so many important values when dealing with a client’s biggest asset. One of the most important for me would be honesty and transparency with your landlords. What would be your dream job outside property management? I enjoy a good coffee, so being a millionaire and owning a niche coffee shop would be interesting! How do you relax outside real estate? I find that an active social life

42 ELITE PROPERTY MANAGER • JUL-AUG 2015

HAVE THE CONVERSATIONS YOU NEED TO HAVE EARLY AND GET THEM OUT OF THE WAY, RATHER THAN AVOIDING THEM AND PUTTING OFF IMPORTANT ISSUES FOR FURTHER DOWN THE TRACK. keeps the stress levels down. Having said that, winter sees a lot of football being watched in front of the fire, following my favourite AFL club Melbourne Demons. I love to travel too, so having a good holiday planned always makes time off so much more rewarding. What’s the best advice you’ve ever been given? Do your best each and every day, and as long as you can go home knowing you have done that it will make sleeping easier. What advice would you give someone starting out in property management? As already mentioned, I believe that honesty with owners is the best policy. Have the conversations you

here and we’re seeing so many more people making the ‘tree change’ than ever before. With our general living affordability much lower compared to the larger cities, I think that will only increase as more career and business opportunities present themselves to our area. Developments in both residential and commercial are strong, so growth in general is promising. With regards to industry changes, I think technology will play an even more prominent role, including of course the move towards a paperless office. With iPads, scanning, emails and more and more add-ons to our current systems, the key will be finding that balance of communication with our landlord and tenants for the future.

BEST PRACTICE

Five tactics to achieve and maintain ZERO PER CENT ARREARS Want to achieve and maintain zero per cent arrears in your property management agency? Here are five proactive and practical tactics from Jo-Anne Oliveri.

ARREARS POLICY Implementing an effective arrears policy can help you achieve and maintain zero per cent arrears. In order to be effective, your policy should be should be clear, time-lined and well communicated so all parties understand their responsibilities from the outset. Take defaulted home loans, for example. As a consumer, if we default on a home loan we know we will receive a breach notice immediately because this is in the bank’s

policy, communicated to us at the start of the relationship. In the same way, your property management agency’s arrears policy should be communicated, understood and accepted by your team, property owners and tenants when they are first inducted into your agency; that way all parties are clear on their own and each other’s responsibilities. As a result, an effective and well-communicated arrears policy can help remove the risk of tenants falling into arrears during their tenancy term.

4 4 ELITE PROPERTY MANAGER • JUL-AUG 2015

ARREARS COMMUNICATION TIMELINE A proactive and systematic arrears communication timeline can also help you achieve and maintain zero per cent arrears. This timeline should outline who, what, when and how late payment messages are communicated to your property owners and tenants. To make it easy to manage and monitor, your property management trust accounting software should also be automated to communicate defaults, issue breach notices and keep track of every tenant’s history. For example, an effective arrears communication timeline could look like the following: Day 3 – Text message: This is a friendly reminder that your rent has not as yet been received, please pay immediately. Day 5 – Text message: Your rent has still not been received. Please attend to this immediately to ensure you do not receive a registered breach. Day 7 – Telephone call: Your rent has still not been received. If not paid by today, you will be issued with a formal breach notice tomorrow. Please pay and send confirmation of your payment to avoid breach. Day 8 – Issue formal breach to tenant (depending on your legislation) and email property owner advising them that their tenant has been issued with breach for non-payment of rent. Day 15 – Issue termination notice to tenant and phone property owner to advise them that their tenant has been issued with a notice to leave. Should tenants fail to leave upon expiry of the termination notice, you should then take immediate action to gain a warrant of possession. Never delay! As a result, this proactive and systematic arrears communication timeline and automation process can help you prevent late payments turning into arrears.

DAILY TASKS In order to manage your late payments proactively, be systematic about monitoring your rental payments. Since automated rent payment systems download rental payments in approximately 15 minutes, downloading and receipting rents should be the first task completed every morning. Your property managers’ next time block should then be allocated to processing any late payments immediately. For example, if rents are receipted at 8.30am then your property managers should process late payments at 9am. As a result, carrying out these tasks

consistently on a day-to-day basis proactively manages your late payments to ensure no tenants fall into arrears.

TENANT INDUCTION When inducting tenants into properties, you must advise them that their full rental payment must be received on or before the due date, as per their Tenancy Agreement, regardless of their personal circumstances. For example, if there are multiple single tenants living in the property, you should inform those tenants that you will not accept individual payments. As there is

YOUR TRUST ACCOUNTING SOFTWARE SHOULD BE AUTOMATED TO COMMUNICATE DEFAULTS, ISSUE BREACH NOTICES AND KEEP TRACK OF HISTORY.

one Tenancy Agreement, it is your tenants’ responsibility to pool their money into one nominated account from which the rent will be deducted. Tenants should also be informed that they must take into consideration the delay automated rental payment systems experience from time of payment to time of receipt, which is usually three days. Ensuring that your tenants understand their Tenancy Agreement and are aware of how your chosen payment system operates helps you receive rent on time and avoid arrears.

ZERO PER CENT ARREARS KPI Each property manager should have a zero per cent arrears KPI. Implementing such a KPI develops healthy competition at both individual and team levels, regardless of the number of property managers you have. When implementing this tactic, keep in mind that arrears are counted from the time a breach notice is issued under your relevant legislative guidelines (prior to that nonpayment is regarded as a late payment). Once all individuals achieve this KPI, you should then count the number of days zero per cent arrears are maintained by each

individual as well as by the team. Keeping such records of achievement encourages your team to maintain their targets and, as a result, helps you maintain your agency target. Achieving and maintaining zero per cent arrears therefore requires you to implement a well-communicated arrears policy, follow a systematic arrears communication timeline, carry out daily preventative arrears tasks, induct your tenants, and give each team member a zero per cent arrears KPI. Implementing these five tactics helps you avoid arrears by proactively managing late payments or, better still, ensuring that rental payments are paid promptly and in full by your tenants each and every time.

JO-ANNE OLIVERI, CIPS, TRC, Founder and Managing Director of property management business solutions company ireviloution, 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.

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MARKETING

A Guide to the Ultimate

BRAINSTORM

JOHN SWEENEY HAS BEEN changing human behaviour across the globe for 15 years.

A master of improvisational insights and innovation, he shares with us his simple tips to help your team come up with some great new ideas.

E’VE ALL been there. The business is going in a new direction and you need to think of ideas to support it, or maybe you have a client demanding a fresh approach and so a time and date are set; it’s brainstorming time. You and the team sit in a room armed with pens and paper, but the ideas just aren’t flowing. It’s awkwardly silent. Nobody feels comfortable speaking out and the mounting pressure is making everyone feel stressed. In these situations it can be all too easy to give up and declare you just aren’t that creative, but resist that temptation. In all my years facilitating innovation sessions for all kinds of businesses, and inspiring people to exhibit the behaviours of innovation, I’ve found a few very simple tweaks to the brainstorming process can elicit incredible results.

GIVE THESE EASY TIPS A TRY 1. Choose a physical space outside the typical workspace; a change of environment helps the mind migrate away from ‘same old, same old’ ideas. 2. Send out some pre-brainstorm information that allows the participants to know both the behavioural guidelines

and the purpose of the session. 3. Ask participants a topic they would like to brainstorm as a way to give back; for example, ten ideas of fun things to do that weekend. 4. Make sure the room set-up is comfortable, flexible and has several seating options. 5. Even if you are only brainstorming one topic, split it up into several sub-topics or buckets to fill. 6. Quantify the number of ideas for topics as your goal; for example, 50 new product names or 75 new marketing ideas.

WE’RE NOT LOOKING FOR THE BEST IDEA; WE’RE JUST LOOKING FOR THE NEXT IDEA. 7. Music and sunlight (if possible), especially at the beginning of the session, will stimulate the mood and the physical presence of your team. 8. Choose a brief physical activity to get the participants’ blood flowing. 9. Begin with a non-business topic to start the energy flow and demonstrate the rules. For example, 50 things to do at a children’s birthday party that would

4 6 ELITE PROPERTY MANAGER • JUL-AUG 2015

make it the best party ever. 10. Let the participants know that volume and quantity trump quality at this stage of the innovation process—we’re not looking for the best idea; we’re just looking for the next idea. 11. Continue to throw in unrelated and fun topics. 12. Include palate-cleansing coaching suggestions like ‘Ten things that would get us all fired’ or ‘Ten ideas that our customers would hate’. These will help stretch your brain into areas it would not typically go. 13. Find several ways to collect ideas and give each participant several options. For example, verbalise ideas, write them down on a note-card, whiteboard your ideas, come up with ideas as a team or spend your time alone in quiet. Everyone has the ability to think and behave innovatively. More often than not it’s our mindset that stifles us. Put these steps into practice and I guarantee you will be innovatively fighting fit in no time!

JOHN SWEENEY is a USA-based international speaker who will be presenting at ARPM 2015. Visit arpm2015.com.au for more information.

ARPM 15: HERE’S HOW TO OBTAIN YOUR CPD POINTS VIA MYREALESTATECPD.COM.AU Make your ARPM 15 experience really count by using this guide to earning CPD points. NSW Agents finish your points online

MY REAL ESTATE CPD

Under the current guidelines of the OFT, 12 points are available for eligible learning activities greater than four hours, once you have completed an assessment. With the amazing speakers and content delivered at ARPM 15, this requirement is met once you have submitted and passed your assessment. Finish your CPD requirement by completing the following steps: 1. Visit myrealestatecpd.com.au/arpm15 2. Choose ARPM 15 ‘NSW’ from the list and complete the simple online checkout process. Make sure you include your full name and licence number to speed up the process of delivering your certificate. 3. Answer the multiple choice quiz. You will need an 80% mark to pass the assessment and you can have as many attempts at it as you need.

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4. Once you have achieved the passmark in the quiz, you will receive a confirmation email from us and your CPD Certificate of Completion will arrive via email within 3-4 working days. Other States of Australia

If you are from WA, ACT or TAS select the relevant option online at myrealestatecpd.com.au to pay your administration fee. Complete your details and the checkout process, and your CPD Certificate of Completion will arrive via email within 3-4 working days.

Can I still do my CPD online even if I don’t attend ARPM 15?

In addition to providing event CPD assessments, we have 12 fully self-contained CPD distance programs which you can complete online in your own time starting at just $89 for 12 points. Visit myrealestatecpd.com.au for more information. * CPD points are approved by BPG Training (Vic) Pty Ltd. These offers are valid until 30th September 2015, after which the normal assessment and certificate fee of $99 applies. This offer does not include the ARPM 15 ticket price, to book your tickets go to arpm2015.com.au. These CPD points are not applicable to QLD, VIC, SA and NT.

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Make it yours!

The Last Word

Troy Hazard

SMOOTH EQUALS SPEED Troy Hazard recalls how a car racing experience taught him a lesson about life and why it’s necessary to think more than one turn ahead.

AKE A STEP back in time with me for a moment, back to a time and place in school and a moment when you were asked that ever-important question by a guidance counsellor or a teacher: ‘What do you want to be when you grow up?’ Do you remember the question? Do you remember what your answer was? I do. I wanted to be a racing driver! I mean, how hard could that be, to make a living out of simply driving fast? I was 32 before I

I re-entered the pit lane after the last session of the day and parked the car, my race instructor and drive partner called me over and said, ‘Here’s your problem; you’re focused on turn one as you’re going into turn one’. Confused, I said, ‘Of course I am; I’m doing 185 kph with hundreds of thousands of dollars of machinery breathing down my neck.’ ‘That’s where you’re going wrong’, he continued. ‘You’re focused on avoiding the

very speed we crave. The consciousness of living in the moment overwhelms our ability to visualise what the impact of today’s decisions are on the future. Talk to any race car driver about speed and you’ll get the same answer: smooth equals speed. And the only way to find smooth is through the strategy of winning the race, not avoiding the accident. A single moment at a racetrack changed the way I think about business, about

“I HAD A NEW PASSION FOR WHAT I WAS DOING IN BUSINESS, BECAUSE NOW THE BUSINESS HAD A PURPOSE.” got into my first race car, 42 before I bought my first race car, and 43 before I learnt that I was a really lousy race car driver! It took me a handful of businesses to realise that if I didn’t know what I wanted to be when I grew up, then there was no way I could work out what the business would look like when it grew up. Interestingly, it was my racing experience that taught me this very valuable lesson. I was doing a practice session at Sydney Motorsport Park (formerly Eastern Creek Raceway). I was having a shocking time – I was six seconds off the pace. As

accident, not winning the race. You know intuitively and instinctively how to take turn one; you’ve done it a hundred times. You need to be focused on the strategy of what you’re going to do in turn four as you enter turn one.’ And then the penny dropped. This was not just about my driving; this was also about my life. Every day I would wake up and focus on what I had to do that day. It was all about the turn right in front of me, the accident waiting to happen, and never about winning the race. When we are so focused on going faster we are sometimes washing off the

48 ELITE PROPERTY MANAGER • JUL-AUG 2015

life, and about the future. I saw that if I wanted to make a change in the way we did business I first had to make a change in my life. I needed to understand my personal purpose, if I was ever going to give the business one. So I took a week off. If I was going to work out what the future held for me then I needed to have a clear head and the space around me,

where the very day to day I was trying to avoid did not clutter my vision of what could be with the focus of what was. Over the course of the next few days I started furiously to write down what I wanted out of life. When I was sitting in my rocking chair in my twilight years, what would I look back on and say ‘wow, I’m glad I did that; those were the things that defined me as a human being, that gave me purpose’? What I found was that with personal purpose and an understanding of what I wanted to be when I grew up, it was much easier for me to develop the business plan that would support that life and that lifestyle. Now I had a new passion for what I was doing in business, because now the business had a purpose. Its purpose was to provide me the resource, the funds and the opportunity for me to achieve my personal purpose. Now the business was working for me; I was not working for it. It’s an easy mistake to make as business leaders. We’re pretty good at writing plans, setting targets and creating metrics in the business to help us achieve our ‘goals’. But what we really need to ask ourselves is – why? Why do we do what we do? Is this what I was meant to be when I grew up? If not, then what am I going to do to change that position with purpose?

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