ELITE PM Issue 10 Feb Mar 2017

7 WAYS TO RAISE THE BAR IN 2017 LEARN FROM THE BEST #10 FEB-MAR 2017

IS ARTIFICIAL INTELLIGENCE THE FUTURE OF SERVICE? COMMUNICATION CHANGES YOUR DESTINATION

REGIONAL GROWTH MASTER DAVE SKOW, WAGGA

PROPERTY MANAGEMENT

WHAT DOES A NEXT LEVEL BDM LOOK LIKE?

It’s a game changer If we don't find you a tenant, you pay nothing

Introducing

The Rent.com.au Smart Plan Rent.com.au’s Smart Plan allows you to advertise your rentals with no risk - you only pay a low $75 for the listing when we find you a tenant.

And if we don’t find you a tenant?

The listing is 100% free.

Here’s what you get Every listing you place with us gets upgraded to our largest advertisement, for free. Get more enquiries, with your logo appearing on all listings.

Standard Advert

350/22 George Tce, Peppermint Grove NEW

Upgraded Advert

1

Our Biggest

1 Advertisement Features Your

2 Logo

2

Includes

3 Walkability Score

350/22 George Tce, Peppermint Grove

3

With the Smart Plan you will also get Free promotion on our ‘Find a Property Manager’ page Comprehensive, industry-leading Renter profile; via Renter Resume Ability to manage your applicants and listings in one easy to use dashboard No lock in contract

Get on board now!

Rent.com.au/agents

1300 736 810

agents@rent.com.au

Contents Regulars 006 FROM THE GUEST EDITOR Tara Bradbury 009 THE WATER COOLER Catch up on what you may have missed 018 PM MENTOR Natalie Hastings 020 BD MASTERY Tara Bradbury 021 REALTY BYTES Alister Maple-Brown

16

022 GAME CHANGER Jo-Anne Oliveri 040 THE LAST WORD Fiona Blayney

Everybody’s talking about 008 EVERY AGENT HAS A STORY with thanks to Console

First Person 012 A ROAD LESS TRAVELLED Martin Graham 014 W HY YOU NEED THE RIGHT FOUNDATIONS FOR GROWTH Malcom Riley 016 YOU THOUGHT YOU WERE A PROPERTY MANAGER, DIDN’T YOU? Lauren Kropp

26

Cover Story 026 REGIONAL GROWTH MASTER Dave Skow, Wagga Property Management

Features 010 TO NEW BEGINNINGS Tim Molloy, Console 030 RENTAL REVOLUTIONARY Greg Bader, rent.com.au 032 A SMOOTH TRANSITION Kasey McDonald 034 FOUR WAYS TECH IS CHANGING THE BUSINESS OF REAL ESTATE Sarah Dawson

36 4 ELITE PROPERTY MANAGER • FEB-MAR 2017

036 TUNE UP YOUR ENGINE ROOM FOR 2017 Heidi Walkinshaw 038 COMMUNICATION CHANGES YOUR DESTINATION Warren Tate

14

MALCOM RILEY SPEAKER AND TRAINER Why you need the right foundations for growth Where are you from originally and where do you call home now?

I was born and bred in Adelaide, SA; I lived in Cairns for 30 years. I will soon be moving to the Gold Coast.

Who or what inspires you at the moment?

A lot of people inspire me, but I look at people who rise above the expectations of others.

What’s the most important project you are working on right now?

I’m working on several projects right now, but investigating where we are heading in the future is the main topic.

Trend to watch in the industry, or in business?

I see that all businesses and industries in Australia are in for a major shake – the old days are just that, in the past.

Favourite quote or words to live by?

‘Treat everyone how you would like to be treated’ – it’s worked for me.

HEIDI WALKINSHAW COACH, CONSULTANT AND TRAINER, REAL+ Tune up your engine room for 2017

36

Where are you from originally and where do you call home?

I grew up in a little country town called Woodville in the Hunter Valley. Home for me now is the leafy seaside suburb of Kurraba Point on Sydney’s Lower North Shore.

Trend to watch in the industry?

The VR and electronics space with property inspections and tours, as well as tech around automation of other processes, allowing for more customer relationship-based focus of roles.

Favourite quote or words to live by?

My grandmother and mother always taught me, “No matter what life throws at you, tomorrow is another day and a chance to start again.” Also, “There’s no such thing as normal; normal is the cycle on a washing machine.”

CONTRIBUTORS WARREN TATE AUTHOR, SPEAKER, COACH AND AUCTIONEER Communication changes your destination

38

Where are you from originally and where do you call home now?

I grew up in Bayside and now live in South Melbourne. I love all of what inner city living has to offer, especially the produce at the South Melbourne market!

Trend to watch in the industry?

Updating real estate agents’ websites away from property search portals to information sources, inclusive of landing pages and lead generation funnels.

Favourite quote or words to live by?

Kaizen – a Japanese business philosophy of continuous improvement.

KASEY MCDONALD BUSINESS DEVELOPMENT MANAGER, VYSTAL PROPERTY GROUP AND CO-FOUNDER, REAL ESTATE TRAINING GROUP A smooth transition

32

Where are you from originally and where do you call home now?

I’m originally from Kingscliff, a coastal town with gorgeous beaches, excellent cafes and restaurants. The Gold Coast is where I call home now.

Who or what inspires you at the moment?

A lot of things inspire me, but one that resonates with me most is the passion my partner shows when he’s training his students in basketball. To see him teach a child with limited skills to play the game and then see them achieve their goals certainly makes me proud.

What’s the most important project you are working on right now?

Preparing my keynote presentation on Handover Process for Real Estate Training Group’s Growing Stronger Together tour.

Favourite quote or words to live by?

“The only way to do great work is to love what you do. If you haven’t found it yet, keep looking.

Don’t settle.” – Steve Jobs

epm.eliteagent.com.au 5

ISSUE 10 FEB-MAR 2017 | epm.eliteagent.com.au SAMANTHA MCLEAN Managing Editor samantha@eliteagent.com.au

TARA BRADBURY Guest Editor tara@bdmacademy.com.au

MARK EDWARDS SHANTELLE ISAAKS Publisher | Commercial Partnerships Marketing Assistant | Newsroom mark@eliteagent.com.au shantelle@eliteagent.com.au JILL BONIFACE Sub-Editor jill@eliteagent.com.au

CHORUS DESIGN Art Direction | Design marc@chorusdesign.com

FEATURE WRITERS June Ramli, Sarah Bell, Samantha McLean

COVER PHOTOGRAPHY Carla Martin | topsnap.com

CONNECT WITH US

@eliteagentmag

SUBSCRIBE (Australia only)

eliteagent.com.au/shopnow +61 2 8854 6123 subscriptions@eliteagent.com.au International subscriptions can be purchased via iSubscribe.com.au

Editor of the Year Business WINNER

BUSINESS MAGAZINE OF THE YEAR

BASS Publications Pty Ltd

(a subsidiary of A Bit of This Publishing Pty Ltd) ACN 169 805 921 Postal Address: Suite 904, 121 Walker Street North Sydney NSW 2060 Telephone +61 2 8854 6123 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.

EDITORIAL DISCLAIMER: Some opinions expressed in EPM Magazine are not necessarily those of its staff or contributing editors. Those opinions are reproduced with no guarantee of accuracy although EPM 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 editor@eliteagent.com. au if you would rather not receive these communications. © Elite Agent Magazine 2017. All rights reserved.

6 ELITE PROPERTY MANAGER • FEB-MAR 2017

GUEST EDITOR’S NOTE TARA BRADBURY

I

I CAN’T EVEN describe the immense amount of joy this opportunity brings; not only to be the guest editor of Elite Property Manager, but to be the first guest editor of 2017!

To say that this was a dream of mine since I was a little girl would be far from the truth; as a kid I dreamed of being a flight attendant and travelling the world.

Little did I know this dream would become reality and I would be recognised as an international business development speaker and trainer in my late 20s.

This journey, which started four years ago, has shown me that you can have everything you want in this world if you are prepared to ask some tough questions.

My daughter Isabelle, who is now 19 months old, starts her day fully loaded with questions. She has no fear of the response she may get or the impact that question may have on the person she is asking.

She sees the world the way we used to when we were her age, and she never lets fear hold her back from asking relevant questions.

It makes me wonder how successful we might be as adults having that same approach.

Imagine how effective we might be as business development managers (BDMs) if we could tap into our inner child and let go of the fear. To start with, we wouldn’t have any problem when it came to asking for business, and we certainly wouldn’t have any trouble justifying why we are worth every cent of our management fee.

For me, this year is about taking charge and not being afraid to ask the important questions that will edge me closer to my goals and targets.

When I think back on my career and remember how much the property management industry has transformed over the last

decade or so, I’m reminded that technology has been an incredible enabler.

It’s enabled us to become better property managers and BDMs by streamlining our systems and efficiencies.

However, while it’s enabled terrific productivity, it’s also created a few bad habits too.

As a result, agents and PMs can get caught in the trap of hiding behind emails.

We’re in an era where if we feel nervous or uncomfortable about a situation, there’s generally a plethora of easier roads at our disposal. We can mask our fear by hiding behind our keyboard or our technology.

But I can tell you, the topperforming BDMs all over the world never take the easy road. In fact, if they see the opportunity they will ask the

MY DAUGHTER STARTS HER DAY FULLY LOADED WITH QUESTIONS. SHE HAS NO FEAR OF THE RESPONSE SHE MAY GET.

hard questions. They go into a phone conversation or listing appointment with 100 per cent confidence in the brand, team and product or service.

They may experience frustration, disappointment and missed business every day, but are always focused on the end goal.

They are prepared to be held accountable, answer questions when required and take responsibility for their actions; but above all they are prepared to ask the questions without the fear attached.

Just like Isabelle, they are fearless; but they’re also worldly in experience. They know if they never ask the questions needed to get the prospect across the line they will never experience the feeling of achievement and subsequent success.

I encourage you now to pick up the phone and make those tough calls you know you were meant to make days ago, but were too scared. Take responsibility for your actions and reactions in 2017, and I promise the opportunities ahead for you will be endless - just as they are through the eyes of my daughter.

epm.eliteagent.com.au 7

EVERYONE IS TALKING ABOUT…

IN ASSOCIATION WITH

EVERY AGENT HAS A STORY

Most people who work in real estate can recount several pivotal moments in their careers from which they have either grown or learned.

Tara Bradbury – Director, BDM Academy Tara leased a home to a tenant without conveying information about the owner’s shed that was never meant to be part of the lease. As a result, she paid out-ofpocket for the tenant’s extra storage, and is passionate now about proper handover procedures from BDM to PM.

Every Agent Has a Story is exclusively brought to you in association with Console. Watch the series at eliteagent. com.au/stories. Series runs from November 2016 to April 2017.

Our ‘Every Agent Has a Story’ series captures the tales of some of our industry’s most popular professionals – across leadership, sales and property management.

Find out what they would do differently if they had the chance to have their time over again.

Hayley Mitchell

Bob Walters (Coming Soon!)

James Bell

Doug Driscoll

STORIES LAST MONTH

Hayley Mitchell – Director, Mitchell Property Hayley was tasked with evicting a longterm tenant. She shares her experience in a situation where, as awful as it was, it was the right thing to do for both the owner and the tenant.

Doug Driscoll – CEO, Starr Partners Doug took it upon himself to confront an unreliable and dangerous tenant in the UK. Moving forward, he has learned to take the extra time to research a tenant’s history before sealing the deal. It pays dividends to wait for the right tenant.

James Bell – Director, Brad Bell Real Estate James learned an important lesson early in his transition from salesperson to principal. Losing out on a long-term owner relationship may be costly, but the ability to learn from these mistakes remains invaluable to business growth.

8 ELITE PROPERTY MANAGER • FEB-MAR 2017

Tara Bradbury

THE WATER COOLER

D

Our daily newsletter #thebrief brings you the latest real estate news, tech and marketing tips straight up every day.

In case you’ve missed anything, here are some of this months trending stories. Subscribe to #thebrief eliteagent.com.au/subscribe.

SPECIAL EPM READER OFFER FOR ALPPPS ALPPPS inspires property management principals, team leaders and career property managers to ‘move SPECIAL DEAL mountains’ and achieve spectacular results in their businesses and careers.

Taking place on 2-3 March on the Gold Coast, this summit empowers you to reach the pinnacle of success using peak performance strategies and tools. As an exclusive offer to all Elite Agent and Elite Property Manager readers, you can receive 20% off your ALPPPS registration using promotional code ELITE. If you want to #movemountains in 2017, register now at alppps.com.

Changes to Rental Bonds Online (RBO) from 30 January From 30 January 2017, changes to the NSW Residential Tenancies Act 2010 (the Act) make it mandatory for landlords and real estate agents to invite tenants to lodge their rental bonds using Rental Bonds Online (RBO). The amendment does not change any other provisions in the Act, including those relating to the lodgement and claims for bonds.

More information is available on the NSW Fair Trading website and at eliteagent.com.au.

Virtual reality live streaming in property management

TRENDING

If you think VR won’t catch on in PM, you may have to think again: Neesh Property in Victoria are achieving near zero percent vacancy rates and now want to teach others how to use the technology to achieve the same results. Principal Michael Sanz said he bought a 360 degree camera for $600 in the UK and has never looked back.

Rent.com.au launches an industry-first performance-based plan Rent.com.au have made significant changes to their listings model which can considerably benefit agents. Here is a quick rundown: • The new agent model is called SmartPlan • SmartPlan allows you to list properties without charge • Listings are upgraded to the largest possible size and include the cool things like your logo and walk scores • SmartPlan works in conjunction with rent.com.au’s consumer product RenterResume allows consumers to set up a profile to apply for rental properties (one time only setup) • You are only charged $75 for the listing if you find your tenant through rent.com.au RenterResume. If you don’t find your tenant through rent. com.au you pay nothing.

More in our interview with new CEO Greg Bader on page 30.

THE TRADIE PRICE INDEX: NUMBERS ARE UP IN 2016

After taking a 2.5 per cent drop at the start of the financial year, tradie prices in NSW have increased nine per cent to kick off 2017.

The quarterly Tradie Price Index, released last month by jobs website ServiceSeeking. com.au, reveals a significant hike in the cost of hiring a tradie in NSW. The weighted average hourly rate currently sits at $64.46, over $5.00 more expensive than the previous quarter.

“Housing affordability in NSW is becoming increasingly dire and we’re seeing less and less properties on the market. It only makes sense that people are choosing to renovate rather than upsize to a new place,” says ServiceSeeking.com.au CEO Jeremy Levitt. Plumbers still take the prize as the most expensive tradie, charging on average $70.46 per hour, up 5 per cent on last quarter.

VISIT ELITEAGENT.COM.AU/CATCHUP FOR FULL VERSIONS OF ALL WATERCOOLER STORIES AND OFFERS

epm.eliteagent.com.au 9

EVERYONE IS TALKING ABOUT…

TO NEW BEGINNINGS TIM MOLLOY IS NO STRANGER to growing businesses,

understanding how almost any industry can be transformed through technology. Now, as the CEO of Console, he is taking a close look at how to make the role of the property manager more productive and efficient using the ‘new’ Console as a vehicle for change.

Samantha McLean spoke exclusively to Tim to find out more about the company’s accelerated plans to move Console to the cloud and onto more desks in 2017.

THERE IS NO DOUBT that Console has undergone some change in the past twelve months, most notably the ownership and leadership changes that took place late last year.

Tim Molloy, Console’s new CEO, says he is immensely enjoying both his new role and being a part of the real estate industry.

He sees great opportunity for real estate to use tools that are available now in other sectors but have not been brought to bear in the property industry so far – either through lack of funding or lack of vision. “I guess you could say most of the suppliers are niche suppliers or cottage industries,” says Molloy. “Cottage industries are usually constrained in two ways: by capital – in other words how much they can do – and they are typically constrained in strategy, where perhaps the shareholders don’t have a deep understanding of the marketplace.”

Right now, Console does not have either of those issues. The new ownership includes CoreLogic, Macquarie, and Michael and Patrick Dempsey (who previously owned Ezidebit). These new shareholders are long-term players in the real estate industry who know Console well, deeply understand the marketplace, and have access to the right amount of capital to effect the change that much of the industry would like to see.

Molloy is the first to admit that Console has been somewhat late to market with a cloud-based trust accounting offering, but also says that is not necessarily a negative now that the right management and backing are in place. “What property managers are increasingly wanting is the ‘next generation’ of product. But it’s not enough to pick up

the current features that are sitting on an existing system like Console and just put it all up into the cloud.

“However, in moving to the cloud we are almost starting over, and the objective in our new product will be making property management more efficient and effective.”

Molloy says there are plenty of examples in other industries where property can adopt successful processes, learning from they way in which they service customers.

“Insurance is just one example,” says Molloy. “Let’s say while on a bus you get a notification on your phone to say your insurance is due. By the time you get to the office, you might have already paid it.

Everyone in the insurance ecosystem has visibility of what’s going on.

“Now, in the case of property management, landlords might have to physically phone a property manager to find out what is going on, as opposed to being much more in control and deciding what level of information they want pushed to them.”

Molloy does not believe this has the potential to cut the property managers from the relationship by having technology replacing some of the more mundane tasks; but asserts it’s an advantage and can be used to create more value in existing relationships. “At Console, property managers are at the center of our universe,’ says Molloy.

“But say you’re a landlord with 20 rental properties; you probably want to be able to be able to look at the state of play on your properties without necessarily always having a person-to-person discussion.

“So, I think that having many of these conversations taken care of by technology goes towards making the property

JOURNEY TO THE CLOUD A BRIEF HISTORY OF CONSOLE MARCH 1992

Console is launched and quickly becomes popular with property management businesses for its ease of use, and quickly earns significant market share.

SEPTEMBER 2014

CEO Michael Fredericks is stood aside while the board investigates a private civil legal dispute he was having in the Queensland Supreme Court.

MAY 2011

Onthehouse (with a minor interest in Residex) prepares to float, with the target IPO of $55.1 million to be used to purchase Portplus and Console. The valuation of the company after listing (June 2011) is $81m.

10 ELITE PROPERTY MANAGER • FEB-MAR 2017

MAY 2016

Onthehouse sells website onthehouse.com.au to CoreLogic RPData for $3 million, while Macquarie completes due diligence on the rest of the software business. The sale of the website includes Residex and the Real estate Ad Network; meaning the primary business for Onthehouse is now Console.

DECEMBER 2015

A Macquarie Consortium offers 75.5c per share for Onthehouse holdings. The offer is rejected.

manager more effective. Instead of needing to make dozens of phone calls reacting to cycles of, for example, rental payments, the property manager becomes more like the orchestra manager, delivering direction to the participants – whether it’s the tenant, whether it’s the trades, the movers, the landlord. That’s our dream.”

The first stage of achieving the dream is obviously to get Console into the cloud, and Molloy says it’s not far away. “We’ve had a team of 22 people working on doing that for six months. We’ve recently hired another 24 people into that team. The first edition of the product will be out to a select group at the end of March.

“We’re moving at a rapid pace because we can. Our key message right now is that Console has a new beginning. We used to

coming together under one roof.

But while not giving away specifics to do with his future strategy, Molloy says, “This is the way the world’s going with these sorts of products, to a transactionbased kind of environment. Increasingly in other industries it works, and breeds efficiency because you start joining all the people that need the data from the various systems that create the transactions.”

Molloy points towards the number of technology apps that a property manager uses today as one of the reasons for a lack of efficiency in some property management businesses. “Whether it’s maintenance apps or inspection apps, form providers, utility connections or others, the challenge is while each of these appear to offer enhanced efficiencies, they

“We’re moving at a rapid pace because we can. Our key message right now is that Console has a new beginning.” be known for producing stuff that no one else was producing. We’re going to be that again.”

Joining some dots of my own, the thought of where this consortium could take Console is pretty interesting.

With the owners of the company now comprising a banking powerhouse in Macquarie, Australia’s largest property data analytics provider CoreLogic and the Dempsey brothers, who as previous owners of Ezidebit have experience in transactional models similar to rental payments, it seems many of the pieces of the property management puzzle are

AUGUST 2016

As a result of off loading the onthehouse. com.au website, Onthehouse holdings posts a positive operating profit in the year to 30 June, 2016.

JULY 2016

Onthehouse board enters into a takeover agreement with Macquarie for 85c per share, kicking off the process of transitioning Console to a cloud-based offering.

are somewhat complicating the process and duplicating data. We take the view that these are the sorts of things that have to come onto one platform to make things simple, effective, efficient.”

So the ‘end game’ of efficiencies that we were discussing earlier may not be too far away. But Molloy also points out that sometimes for the people that are deep into the every day of disparate systems and inefficiencies, it can be hard to see how good something could be.

“My view is that most of the actors in the ecosystem are currently ‘happily dissatisfied’,” says Molloy. “Owners,

because they have to make phone calls to know what’s going on. Tenants, because the process of getting into a property then maintaining it is quite a manual process.

Property managers, because they know their work interactions could be supported much better by technology. The current reality appears to be what everyone has accepted as the norm. But it doesn’t have to be that way.”

And this will be what leads to value for the agency principal. “Property managers are really important. They are the enablers at the centre of a very large industry,” says Molloy.

“There should be a motivation by agency principals to make sure that the rent roll management process is as effective and efficient as possible. We think we can be a big part of the solution to that.”

Apart from launching the first version of the cloud product in March, Molloy says his other primary goal as a business is to get more in touch with current clients and the marketplace, as well as helping the market to understand where the product is headed. And some of the work, he says, has already been done.

“It’s a bit like building a very large building. Thirty per cent of that work is under the ground, in the foundation work.

We’ve virtually completed all of that work, and we are now well into the feature development part.”

Molloy is exceptionally upbeat in his conclusion. “Our job in the next 12 months is to elaborate on the roadmap for our clients and the industry to get confidence that we are on track. And we are excited about the opportunities that we can grab hold of as a reinvigorated and innovative company.” ■

NOVEMBER 2016

The business is re-branded to simply Console. Tim Molloy (previously GM of Corp Development and deeply involved as an executive in the transformation of at MYOB) is appointed CEO and given the remit to accelerate development of Console in the cloud, with the backing of additional investment from their new shareholders. The first version of the cloud software is to be made available to selected users in March 2017.

OCTOBER 2016

The Macquarie consortium clears the last hurdle in winning control of Onthehouse. The consortium includes firms owned by Michael and Daniel Dempsey (prior owners of Ezidebit) and CoreLogic. The transaction values the business at $70m.

eliteagent.com.au 11

FIRST PERSON

Martin Graham

A road less travelled

WHAT DOES IT TAKE TO be a successful leader who can evolve

and adapt with the demands of a business? With over 20 years’ experience in the property sector, Martin Graham is often asked this question. Here he explains how a handful of key elements, including employee engagement and buy-in are vital to success.

There have been many lessons learned during my 15 years as CEO of Vystal Property Group. During that time, the company has experienced a tumultuous journey encompassing both contractions and expansions; but, luckily for me, mostly growth.

Throughout the ride, I’ve worn many hats and been many different versions of myself, too. Not only have these experiences shaped and developed my leadership skills; they’ve also given me an insight into what it takes to be a successful CEO who can steer a company towards longterm growth and sustained profits.

It’s not a road that is travelled by many; in fact, many attempt to merge onto the highway of leadership.

Just as many great leaders will tell you, one element is vital to business success: the team. The people. The workers. And when it comes to managing people, it’s imperative you get to know them; learn what motivates and drives them, but above all, learn how to listen to them.

Trust me, I’ve certainly learned the art of listening over the years. In fact, it’s probably been the biggest and most valuable learning curve I’ve experienced throughout my career,

and I cannot place enough importance on its value when it comes to managing people.

How you lead your team ultimately determines how successful you will be. As a leader, if you don’t lead by example and show them true value they won’t work towards the same goals as you. It’s as simple as that.

The best way to give them some buy-in and bring value to their role starts with the position description. I see a lot of managers issue an employee with a position description and then just

walk away. This is a common mistake.

By engaging the employee in the position description process, you’re essentially giving them some ownership over it. Ultimately you’re creating an environment where they feel empowered.

Show them how they will benefit from what you’re trying to achieve by identifying the benefit to them. If they are happy and achieving – even if it’s not money or incentive based – it leads to better satisfaction. It doesn’t always come down to money. In fact, I

find job satisfaction rarely does.

So get a solid position description, give it to them and have them come back to you with input after they’ve read it. See whether it fits with what they think their role is and discuss it with them.

It’s really important to understand each person individually; I cannot emphasis enough the need for one-on-ones.

As a leader, you’re dealing with various personalities who are often within a team, all attempting to work together.

By knowing your employees and understanding what drives them, you’re in a better position to lead and influence them, and relate to them in a way they understand.

This couldn’t be more important than during contraction or expansion phases of growth, because different personalities respond to changing work environments and stresses in different ways.

As a leader you need to be able to adapt, but you also need to nurture your employees to adapt too.

I’ve found that in times of

THE ART OF LISTENING HAS PROBABLY BEEN THE BIGGEST AND MOST VALUABLE LEARNING CURVE I’VE EXPERIENCED THROUGHOUT MY CAREER.

12 ELITE PROPERTY MANAGER • FEB-MAR 2017

significant growth adaptation is a daily thing. Engaging with your employees one-on-one during a time like this is a great way to identify when cracks are forming – because if you don’t see the cracks, you’ll fall in them. It’s as simple as that. ■

MARTIN GRAHAM is CEO of Vystal Group of Companies.

Martin will be speaking at RETG’s ‘Growing Stronger Together’ tour in 2017.

For more information visit retgevents.com.au.

FIRST PERSON

Malcom Riley

Why you need the right foundations for growth THE PROPERTY MANAGEMENT profession is changing, and office

principals are looking to grow in order to protect their company.

Malcom Riley looks at the way property management is evolving to be the mainstay of many real estate businesses.

I hear regularly from real estate principals that they want to grow their rent roll. We are seeing these sorts of changes all over the globe and in many different professions and industries.

I remember when I changed my office to property management only, back in the 1980s. Many people criticised me. It was suggested that the business wouldn’t be able to make money and I remember someone asking me if I needed a real estate licence to run a rent roll! Unlike those critics, I was well aware of the power of the property management division in an office, along with the cash flow and assets value it can provide if operated correctly.

Today I see principals investing heavily into property management departments and employing a BDM to drive the growth, and I say it’s about time. The problem has been that 98 per cent of real estate principals are salespeople who are running their businesses.

This does not mean that they have the skills to run a profitable business into the future - don’t worry, I was a salesperson too! I believe the real estate model that I have

seen all over Australia, which has been operating this way for the last 20 years - an office with six salespeople, 200 to 300 properties on the rent roll, which pays the rent, power, wages and general overheads, and the sales division making up the cream or profit - is unlikely to stay that way.

Today I see principals looking at the rent rolls as they should a business that provides cashflow. It is an

TODAY I SEE PRINCIPALS INVESTING HEAVILY INTO PROPERTY MANAGEMENT DEPARTMENTS AND EMPLOYING A BDM TO DRIVE THE GROWTH, AND I SAY IT’S ABOUT TIME. asset that can be sold or borrowed against and, above all, maintain the market share of your company into the future. The trouble is, a lot of companies don’t know how to do it. The threats

14 ELITE PROPERTY MANAGER • FEB-MAR 2017

to real estate companies - and in my opinion these are very real threats - are that we have new property management departments opening up with great marketing strategies, many different products on offer and a huge variation in fee structures and so on. I see the world of property management in 2017 as vastly different to 2016.

In today’s world things change extremely quickly,

unlike in years gone by. The challenge will be to keep up to and in front of the changes. Therefore maybe the principals and BDMs need to ask a few basic questions before thinking about going into a growth phase.

Here are some questions you need to ask yourself to determine if you’re ready for growth: • Do I have the right structure?

• Do I have the right team in place?

• Do I have the right software and technology in place?

• Can our website handle the traffic?

• Are we currently productive as a department?

• Can we do things better than we are currently doing?

• Has the office enough space to allow us to grow?

• Are we networking between sales and PM departments?

The bottom line is you won’t grow the numbers if you don’t have the correct foundation in place first. Too many offices spend marketing money on an instant grab for new managements without the proper planning. For example, who is your market?

Let’s research that target market and plan on how to reach them.

With one company I trained recently we discovered, after much research, that they were dealing with mainly non-English speaking clients, or clients who have poor English. We therefore updated the BDM listing kit to read in different languages.

The result has been an increase in business in this segment of the market.

I believe we are heading for a huge change in property management in 2017.

However, don’t feel alarmed as I see this as exciting!

Always remember, knowledge is power. You will be able to position your department to thrive by being aware of what is coming.

My experience is that to grow it is almost impossible to do it alone. ■

MALCOM RILEY is a nationally accredited trainer with nearly 15 years’ experience. He will be speaking at RETG’s ‘Growing Stronger Together’ tour in 2017. For more information visit retgevents.com.au.

KICKSTART YOUR RENT ROLL GROWTH

DOWNLOAD YOUR FREE 30 MINUTE TRAINING SESSION VISIT REALPLUS.COM.AU/RENTROLLGROWTH TRAINING + RECRUITMENT + CONSULTANCY

FIRST PERSON

Lauren Kropp

You Thought You Were a Property Manager, Didn’t You? THREE YEARS AGO, you were employed by your agency

to run a portfolio of 150 properties and had the title ‘Property Manager’ on your business card. As times have changed, many agencies have resorted to outsourcing their administration tasks. Lauren Kropp examines the effect has this had on the traditional PM role.

A few years ago, every lettings agency employed property managers to deal with the basic tasks of managing a portfolio of properties.

Many people were looking to change this title to ‘asset manager’, ‘people manager’ or ‘counsellor’, but we still referred to it as property manager.

These tasks traditionally include: • Lease renewals • Arrears • Application processing

websites.

• Sending lease documents and welcome packs • Email liaising • Client marketing • Social media posts • Trust accounting Now many offices are outsourcing administrative tasks, what is left for the property manager? The only true gap that I see is routine inspections, leasing or viewings, and tenant and landlord sign ups for those who prefer face to face.

If an office were to hire or outsource a routine inspection officer, and a business development manager who could, in fact, perform the sign ups and viewings, this would make the role of the property manager obsolete.

I hear a lot of property managers complain that they do not get paid enough for the highly stressful job, and I concur. However, if an agency appoints the outsource team and a BDM, what will happen to the current annual salary of a property manager?

If this were to happen, a principal has every right to greatly reduce the role and salary of a property manager, or make them redundant.

Everyone has an opinion on outsourcing. As the managing director of an outsourcing business specialising in trust accounting and temporary

IF AN AGENCY APPOINTS AN OUTSOURCE TEAM AND A BDM, WHAT HAPPENS TO THE ANNUAL SALARY OF A PROPERTY MANAGER? • Reference checks • Scheduling of inspections and sending appropriate forms • Entering and arranging maintenance • Compliance (smoke alarms, pool management) • Arranging open homes, including uploading to

16 ELITE PROPERTY MANAGER • FEB-MAR 2017

recruitment, I have spent a lot of time, especially of late, writing a ‘pros and cons’ list.

THE PRINCIPAL VIEW A principal will love outsourcing if they do not have a strong relationship with their team and see them purely as an expense.

That may sound harsh, but not all employers respect the employee and value the faceto-face concept of their input in the business.

By contracting the services of an offshore Virtual Assistant (VA), they only pay $7 per hour to perform the above tasks compared to $25 per hour for a regular employee. In some instances, they do not have to pay GST to the contracted worker as the company is owned and operated overseas.

They do not have to pay super or work cover to the VA either.

However, they must make sure their professional indemnity insurance covers the VA. Based on a 38-hour work week, this is a cost saving of $684 in wages plus $65 in super – almost $39,000 annually!

In a portfolio of 150 properties, the property manager will generally have an assistant or a routine inspection officer to assist them. Therefore, in the above instance, the property manager would be made redundant, the routine inspection officer would keep their job and the business would be better off by $39K – but what happens to customer service?

The principal who likes good old-fashioned customer service, face-to-face conversations and walk-ins will not like outsourcing. They can see the benefit of paying an additional $39K in wages because they have built a brand and a reputation. Therefore the business should be making up for that $39K and more with new management and growth.

One final negative in offshore outsourcing is the language barrier. The time spent initially outlining and training the VA in procedures and tasks is consuming.

But I can tell you from firsthand experience that, if you are fortunate to have a VA that fits your business mould, the initial training is worth it. We

use a VA for our administration tasks, but she is restricted from calling our clients due to the language barrier.

THE PM VIEW Property managers, however, will love outsourcing if it makes their life easier and they keep their job. Therefore, the type of outsourcing suitable

NOT ALL EMPLOYERS RESPECT THE EMPLOYEE AND VALUE THE FACE-TO-FACE CONCEPT. for this is a routine inspection officer and/or a trust account specialist.

If the idea of a VA interests you but you are worried about the language barrier, it is possible to outsource to Australian companies.

However, you will pay more than $7 per hour due to Australian minimum clerical award; but this will assist the smaller offices who may only want a part-time employee to work from home. The training will also be much easier.

MY VIEW I have the best of both worlds.

I have a VA in the Philippines for our admin, and at Real Strategix we outsource Australian staff to perform inspections, provide in-office temporary recruitment and trust account outsourcing. Therefore my view is completely impartial. ■ LAUREN KROPP is a director and consultant at Real Strategix, who offer a wide variety of property management consulting services. For more information visit realstrategix.com.au.

epm.eliteagent.com.au 17

Property Management Mentor

Natalie Hastings

BOXING DAY ACCOUNTING: WHAT CAN YOU CLAIM? THOUGH THE FESTIVE SEASON and its excesses feel far behind us, it’s only now that

many agencies are accounting for their holiday expenses. Client Christmas party? Tick.

Landlord gifts? You know it. Company Christmas party? That’s there too. How much can you claim? Natalie Hastings has the answers.

R

ather than nursing a sore head over your necessarily generous seasonal expenditure, now’s the time to focus on accounting for these costs to benefit your business – and gaining a better understanding of the tax implications of gifting and hospitality. A little attention to detail now will result in a 2016-17 tax return you’ll feel more than jolly about.

you give your team a gift worth less than $300, this cost would generally be exempt from fringe benefits tax. Gifts in excess of this amount are generally subject to fringe benefits tax in the hands of the employer – regardless of whether they’re given at a Christmas party or not. Not

CLIENT GIFTS They’re your clients, and you love ‘em – so you treated them to gifts over the holiday season.

That makes good business sense and good tax sense, too.

Gifts to clients are, broadly speaking, tax deductible, giving rise to GST credits. If your gift will promote your business and create goodwill – leading to further repeat business or referral custom – you’re free to claim away. Note that client gifts should not be subject to fringe benefits tax, and that you cannot claim deductions or GST credits if gifts relate to entertainment.

TEAM GIFTS Your team are worth celebrating with presents!

Gifting, however, can be complex in terms of tax. Should

18 ELITE PROPERTY MANAGER • FEB-MAR 2017

all is lost, however; employers can often claim deductions and GST credits for the cost of these gifts. The main exception is where a gift relates to entertainment (such as tickets to the tennis or the theatre).

Entertainment gifts are considerably more complex to handle in terms of accounting,

so consult with your agency accountant for more details on your circumstances.

Small gifts given to your team irregularly throughout the year, with a value of less than $300 including GST, are described as minor benefits.

These include bottles of vino, hampers, pens and

vouchers – but exclude entertainment. These staff gifts are tax deductible and GST creditable to your agency, and exempt from fringe benefits tax – so long as they’re not given at the Christmas party.

CHRISTMAS PARTIES Whether you host an EOFY bash or a Christmas party to write home about, the costs associated with functions are classed as entertainment and thus subject to fringe benefits tax rules. When accounting, be sure to include function costs including food, drinks, venue hire, transport, gifts for your team and entertainment (Instagram booth, we’re looking at you!). Timing matters, too, when it comes to our friends at the ATO. If your Christmas function is held on a working day on-site, the costs will be exempt from fringe benefits tax. Parties costing

the function is off-site, but is exempt from fringe benefits tax if held at your premises.

COFFEES, MORNING TEA AND THE REST Refreshments for your team is a grey area with the ATO – and a lot of busywork for you in terms of collecting receipts, too! Often it’s less expensive and easier to purchase a quality coffee machine for your office, allowing your team to caffeinate at will.

BUSINESS TRAVEL EXPENSES Have an employee away for six or more consecutive nights? Ensure you use a diary to record all business activities completed before your travel ends. You’ll need to record the nature of business activity, the date and approximate time it began, how long it lasted and the location where it took place.

IF YOUR GIFT WILL PROMOTE YOUR BUSINESS AND CREATE GOODWILL, YOU’RE FREE TO CLAIM AWAY. less than $300 per head are exempt from fringe benefits tax in most cases, but they’re not tax deductible or GST creditable. And did you know that partners of employees also have their own $300 allocation?

There’s another reason to brighten up your next staff party – more partners equals less real estate work talk!

TRANSPORT Have you been extra-lovely to your team, offering the cost of taxi fares to and from festivities? The cost of this transport will count as part of the $300 per head limit if

LAST CHANCE TO BOOK!

If you are mixing business and pleasure, you must exclude private expenses from any claim made.

Whilst working out fringe benefits tax and GST credits on the purchases you’ve made for clients, staff and business travel isn’t a bundle of fun, they’re certainly worth getting right – and useful for planning 2017’s festivities, too. Tax-effective treating has never balanced better. ■

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

Do you want to take your property management business or career to the top in 2017? ALPPPS empowers Property Management Principals and Team Leaders to 'move mountains' ­ achieve spectacular and seemingly impossible results!

REGISTER NOW AT WWW.ALPPPS.COM

#mo vemo u n tain s 2–3 march 2017 • gold coast property management leadership summit visit www.alppps.com to book #alppps2017 #movemountains

epm.eliteagent.com.au 19

Business Development Mastery

Tara Bradbury

WHAT DOES A NEXT-LEVEL BDM LOOK LIKE? THE KEY ROLE OF A BUSINESS development manager (BDM) is to source new strategic

opportunities for the business, while building and maintaining relationships with referral partners, prospects and clients. But what does a ‘next level’ BDM look like?

Tara Bradbury explains.

T

he role of a BDM can be many things, depending on the company structure.

Many businesses overcomplicate the role and incorporate too many expectations and KPIs, leaving the BDM lost and uncertain as they fail to achieve expected targets. To get the most out of your BDM you need to have a clear understanding of the difference between marketing, sales and business development.

Marketing attracts customers to the brand or business and is usually generated digitally and through various media outlets, such as print, TV, radio and online. Sales take the leads and convert them into business.

Business development, on the other hand, works to seek and create new opportunities and leads, and build a strong growth pipeline.

Business development can help identify and execute new areas of business, new opportunities, new referral partners and new products.

This is done typically through partnerships between another company and your BDM. No matter what industry you operate in, the fundamentals for successfully employing a BDM are the same.

• In the interview, make sure

you ask direct questions related to the role and what they know about the business.

• Talk with the team about the candidate; get feedback and support for the new team member.

• Once secured, ensure they have a detailed job description, key performance indicators and an understanding of the type of negotiation power they have when at the listing appointment.

• Ensure they know, understand and are 100 per cent passionate about the brand, team and fee structure they are promoting.

• If you have a sales team, help this process by creating the introduction.

• Provide feedback when the BDM comes in with a list of referral partners they would like to connect with. You don’t want them to be doing business with people you don’t know and trust.

• Lastly, have a strong accountability plan in place

and don’t be afraid to ask the tough questions.

These may all seem logical steps, but they can easily be missed when a manager just lets the BDM walk into the role with no guidance or accountability plan.

As a BDM, always start by focusing on how you can help them, not what they can do for you – and remember, the overall goal is to start building long-term, profitable relationships.

For example, if you were speaking with an accountant you could say, ‘I work with many prospects and clients who have tax-related questions and they normally call up around the middle of each year. I would love to be able to refer them to someone

MANY BUSINESSES OVER-COMPLICATE THE ROLE AND INCORPORATE TOO MANY EXPECTATIONS AND KPIS.

20 ELITE PROPERTY MANAGER • FEB-MAR 2017

I know and trust, and would appreciate hearing a little more about your business and how you assist your property investment clients.’

You can also help each other stimulate referrals by running joint investor evenings, sharing articles on newsletters, websites and social media updates.

A good BDM will be superproactive in passing on a referral – it’s a great way to show you’re listening to your clients’ wants and needs. If you want to be seen as the investment property specialist in your area, you need to start performing like one and be ready to share solutions.

The next-level BDM knows what it takes to stand out and be different, and won’t take no for an answer. They ensure they are devoting 100 per cent attention to the role, and are on the phone or in face-to-face meetings every day, with the goal of having at least one appraisal booked each day. ■

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

Alister Maple-Brown, CEO, Rockend

Realty Bytes

IS ARTIFICIAL INTELLIGENCE THE FUTURE OF SERVICE? AS CONSUMERS WE ARE NEVER REALLY satisfied with customer service. In fact, business

reviews today are showing that this is one of the few areas of differentiation between competitors. Alister Maple-Brown looks at the potential of Artificial Intelligence (AI) in improving customer service and whether it means the end of the ‘human touch’.

T

here’s just something about picking up a phone to talk to a customer service rep that’s agitating. But why?

Once you’ve searched the company website to find the right number, you inevitably speak to someone who completely fails to understand what you’re saying. You answer questions asked by a real human only to find out you’re not speaking to the right person or are transferred to someone else. When you’re finally transferred to the right person, you’re so frustrated with the entire process you’re close to losing it, demand to speak to a supervisor or threaten to switch to a new provider.

Sound familiar?

Enter Artificial Intelligence.

WHAT IS AI? Thanks to Hollywood, when many of us think about AI we envisage robots taking over the world. And, because it’s largely misunderstood, many fear even considering adopting the technology. But ignoring is not going to make it go away.

Put simply, AI is a branch of computer science focusing on developing applications and technology to perform

like human beings, based on information gathered from behaviour patterns, speech recognition, online activity, knowledge databases and so on.

So how can it help when it comes to customer service?

Properly synthesised into the customer service process, AI has the potential to produce amazing results by feeding it with past customer service logs, behaviour patterns, soft skills and more.

AN END TO THE HUMAN TOUCH? Far from it. Developers of AI customer service technology say that its purpose is not to replace humans, but rather to make it easier for them to serve customers. Many customer service glitches occur because information isn’t easily accessible by customer service reps. So if AI can help reps more quickly search for information and prompt responses based on customer requests, it can certainly go a long way to improving the overall experience.

There are already AI solutions that use information from historical customer service chats and data, or from frequently asked questions to populate

knowledge bases. These can easily be accessed by customer service reps to find the right solutions quickly.

The idea is that AI can research the knowledge base faster and provide prompts to reps to help them resolve queries more efficiently.

Other solutions are focused on the human elements of

responding to customer complaints on social media.

These use AI to seek out customers on social media platforms who appear to be having difficulty with their enquiries or help requests.

Finding these customers and responding to their queries can be a major boost to customer service.

There will always be the

MANY CUSTOMER SERVICE GLITCHES OCCUR BECAUSE INFORMATION ISN’T EASILY ACCESSIBLE BY CUSTOMER SERVICE REPS.

AI, for example the ability to read the emotions of the customer, whether angry or frustrated, with the objective of being able to show empathy.

And then there are applications aimed at

need for a human touch, and AI isn’t ready to solve complex issues on its own; not just yet anyway.

Nevertheless, adding an element of AI to your customer service plans can make a lot of sense and contribute to a more seamless approach to customer service.

And with any luck, those frustrating and multiple phone calls will be a thing of the past. ■

ALISTER MAPLE-BROWN is the CEO of Rockend.

For more information visit rockend.com.au.

epm.eliteagent.com.au 21

Game Changer

Jo-Anne Oliveri

7 WAYS TO RAISE THE BAR IN 2017 WHEN IT COMES TO AIMING high in your property management business, dare to be

different and think big. Here are seven ways you can raise the bar this year.

1

DARE TO BE UNTRADITIONAL Raising the bar in 2017 starts with daring to be ‘untraditional’. As you know, clients engage property management agencies to gain better returns and increased capital growth on their properties. As such, all agencies appear to be the same to property investors. So how do you stand out in this market of sameness?

Start providing untraditional services in addition to your traditional service offering.

To do this, look to your competitors and identify gaps in their service offering that your agency could fill with new and valuable services; for example, market analysis reporting or investment logic mapping.

Take a risk and deliver something untraditional to your clients this year.

2

HIRE FOR ATTITUDE AND ADAPTABILITY To raise the bar in your property management business you need the right team. To do this, hire employees based on their attitude and adaptability, rather than their experience.

This allows you to assemble a team that aligns with your company culture, shares your vision, represents your brand, readily adopts your systems and is on board with raising

the bar. What’s more, creating a team with the right attitude and adaptability usually leads to loyalty and longevity, which can save you time and money in the long run.

3

GIVE YOUR BUSINESS A UNIQUE PERSONALITY Understanding what makes your business special can help you raise the bar. Since most agencies look, sound and feel the same, you have the

22 ELITE PROPERTY MANAGER • FEB-MAR 2017

opportunity to stand out by giving your agency a unique personality that your clients and prospects come to know, like and trust. To do this, reflect on who you are as a principal, why you decided to offer property management services and what makes you special. This then translates to a unique personality for your business. Injecting this heart and soul into your agency is the best way to attract the right clients and team.

4

ACT LIKE DISNEY AND MCDONALD’S Another way to raise the bar in your property management business is to act like Disney and McDonald’s.

What does this mean and how can it help your agency? As you know, Disney is renowned for creating a magical customer experience. Likewise, McDonald’s is known for its consistent customer

experience. Both companies have built their success on effective processes. By modelling your operations on these companies, you too can re-engineer and recreate processes which ensure consistency, compliance and completion in your business.

As a result, this will allow

INJECTING HEART AND SOUL INTO YOUR AGENCY IS THE BEST WAY TO ATTRACT THE RIGHT CLIENTS AND TEAM.

you to provide a memorable customer experience and win more business in 2017.

5

USE TECHNOLOGY TO ENHANCE YOUR HUMAN CONNECTION Another way to raise the bar is by enhancing your human connection with your clients and prospects. The key is to understand how the latest software, apps and gadgets can support your systems and, ultimately, improve this invaluable connection.

That’s because, with the threat of disruption, the best way to remain relevant is by continuously improving your main point of difference: the human connection you can offer. Ironically, this is where technology can step in and help.

6

SET THE BAR FOR HIGHER LEARNING To ensure your property management business delivers the best

results, you need to raise the bar when it comes to your team’s ongoing training. You should hire property managers who are willing to undertake higher learning, or have already earned qualifications. This not only ensures you have a knowledgeable and up-todate team, but demonstrates to your clients and prospects that they are dealing with experts who know how to achieve the promised results every time.

7

BE RELENTLESS IN YOUR PURSUIT OF REMARKABLE In today’s fast-paced world, being good is not good enough. Clients are demanding more and more, and it is those property management businesses that raise the bar and deliver the results that will achieve long-lasting success. In 2017, you should aim to be remarkable in every way – through your service offering, team, personality, processes, systems, human connection, training and results. Being remarkable ensures you remain relevant and valuable to your clients and win more business.

If you want to raise the bar in your property management business in 2017, dare to be different and think big. ■ JO-ANNE OLIVERI, CIPS, TRC, is the Founder and Managing Director of PM business solutions company ireviloution intelligence.

She is an international real estate identity who has trained over 500 agencies and thousands of agency owners and PMs worldwide.

For more information visit ireviloution.com.

epm.eliteagent.com.au 23

Our future is in the cloud

PropertyTree is the next generation cloud based Property Management solution.

An intuitive and innovative solution from Rockend that allows you to grow your business from anywhere at anytime.

This innovation is supported with extensive training and client service from the market leader in Property Management solutions.

Accessible across all devices, it’s the platform to take your business into the future. PropertyTree has extensive automation, new features are released monthly ensuring you’re always working on the latest version.

Book a free demonstration at propertytree.com or call us on AUS 1300 778 733 NZ 09 909 7093

Innovation. Growth. Trust.

COVER STORY

REGIONAL GROWTH MASTER

26 ELITE PROPERTY MANAGER • FEB-MAR 2017

DAVE SKOW IS THE OWNER of Wagga Property

Management in the NSW Riverina. Grabbing an opportunity to open a property management only business in the area, he has grown his rent roll from zero to just over 500 properties in under three years. Passionate about growth, this is his remarkable story.

F

irstly, Dave, tell us a little bit about your background.

I grew up in a town called Lockhart, population 900, on the western side of Wagga.

My first job when I left school was in a little independent sales office. After a couple of years there, I moved to Sydney for about six years, working at the REINSW teaching certificate and CPD courses. After that I moved back home to Wagga.

I was the general manager for the RE/MAX office in town for four years, then it sold. For me, that was the catalyst for change.

Wagga is a great place to invest; the yields are good and growth prospects are strong.

There are two big defence bases and a big university, so there’s always a constant supply of tenants. I was amazed that there wasn’t a property management-only business [there already]. Within the three years I had been thinking about it nobody else had, so I thought, ‘Well, I’ll do it!’

Your business is property management only; what are some of the things that really differentiate your business from others in the area?

I think it’s the things that come with being property management only – that is what gets people to call, or it gets them in the door. In hybrid businesses, the service in property management lacks in most cases. And most times it’s in the area of communication. For example, landlords not finding out their tenants were in arrears until the end of the month comes and they don’t get their money; routine inspections being done once or twice a year, maybe. Whereas we have a hard rule on four inspections every year, so our service levels are high. Our fees are high too, but you get what you pay for.

Your investors and landlords, are they mostly from Wagga or outside the area?

It’s about fifty-fifty. There’s a big chunk that do come from Wagga or within the Riverina District; the other 50 per cent come from Melbourne, Canberra, a couple from Brisbane, and scattered around other places as well. There are some investment groups that plug Wagga as a good investment spot, and we have good referral relationships with some of them.

You started your business from scratch. How has your structure evolved since day one?

We’ve grown rapidly so we’ve had to adapt at each stage. Right now, we’re at about seven staff, and pretty much portfolio-based.

Mind you, at very beginning we were task-based because it was just me doing everything in the first six months, until we got to about a hundred managements. When we put the first staff member on, we were more task-based because we were both managing the portfolio but doing different things. I was doing business things as well as repairs and maintenance and she was doing routines.

Then once we hired a second staff member we switched back to portfolio. And then, with the fourth staff member, we went back to task-based within two portfolios. So during various growth phases we’ve had a bit of a hybrid system to match the levels of staffing that we had at the time.

What do you think has been the main factor in your rapid growth?

Communication with landlords is probably the number one reason why we’ve taken over managements from other agents; out of that a big chunk has come from one or two. The main reason is not because they were dissatisfied with their way of doing things or the people that were doing it; it was just that they weren’t told where things were up to. We run almost 50 per cent on new business. That 50 per cent has come to us from properties previously managed by other agents. The other 50 per cent are new owners, or owners who are moving on, for example. So our whole system around managing property and all our procedures have all been communication-based.

We also don’t take on every management.

There are streets and certain suburbs in Wagga where it’s just not worth our while.

As an investor, if you bought a property without seeing it from out of town, be wary! We get people from Sydney who will pay $140,000 for a little ex-commission house in Ashmont which is surrounded by trouble. They get broken into when they’re vacant, and the windows are all boarded up. Sales agents sometimes don’t tell them that [laughs].

So you pro-actively educate your current investors?

Absolutely. At the end of the day, because we don’t sell homes, we don’t mind what people buy or who they buy it from because

WHEN I GOT TO THE BANK LAST MONDAY SOMEONE SAID, “YOU’RE THE GUY FROM THE VIDEOS. I’VE SEEN THEM; THEY’RE GREAT”.

we’re not compromised by that. So if you come to us (and we get it all the time) and say, ‘Look, I’ve seen 1 Smith Street for sale’, or ‘I’ve seen this for sale; what do you think?’; we are limited in the advice we can give because we’re not licensed under the Financial Services Act. But we would say, ‘Look, this is about what you’ll receive in range, these are the elements that we manage there’. Or, ‘We don’t manage property there, and if we don’t manage property there, there’s a reason for it.

Maybe you need to rethink your strategy.’

But even the landlords we’ve got, in terms of making improvements and

epm.eliteagent.com.au 27

C0VER STORY maximising tax benefits on depreciation schedules and things like that, we point them in the right direction. We don’t advise, but we give them suggestions on what they should be looking at.

You’ve emphasised the importance of communication, how do you keep on top of communication with your owners?

We’ve got a 24-hour messaging system that we use, and there’s one person responsible for taking initial calls. If they are simple, they take care of them. If it’s more in-depth then they call on the appropriate person, even if it’s outside of hours. Sometimes it’s a simple phone call to the landlord to say we’ll get onto it in the morning. But there has to be a phone call. It’s the no-phone-call that can give you a problem! The one or two managements that we’ve lost have been from lack of communication, not letting the owners know what things are up to.

How big a role does technology play in your business?

A big role, but probably no bigger than [any] modern agent; I think that most agents should have our level of technology. We’ve got staff who work from home, or work part-time from

“IF I CAN DO IT, ANYONE CAN. IT’S JUST ABOUT ENGAGING WITH PEOPLE.”

home. Remote accessibility to our server and our systems is important, so we’ve invested to make sure we’ve got that access.

Outside of that we use the typical inspection apps; we use Console so it comes with the Live Agent inspections manager, which we use.

Have you had any success with social media as a marketing tool?

Huge, from a new business point of view for sure. We haven’t used social media for anything other than new business. But from when we first opened that’s been a big contributor to our quick growth. We have a monthly property investor update video that we use and distribute through

our social media channels. We’ve used what good successful sales agencies are doing, in a property management context, and it’s shaking things up.

What about video?

We’ve been doing market update videos for about 18 months. Now people stop me in the streets! For example, when I got to the bank last Monday someone said, “You’re the guy from the videos. I’ve seen them; they’re great, they’re informative, they’re quick but they’re relevant.”

Looking back on your path to growth, is there anything you would do differently if you had your time again?

Not really. The recruitment of staff is the main challenge because, at the start, the business is heavily reliant on the income it’s making to be able to support itself. So putting that first staff member on, when you go from where you may be making a little bit of money to making minus money because you’re now paying a wage until you build up again.

28 ELITE PROPERTY MANAGER • FEB-MAR 2017

That’s always the tricky thing, that balancing act when you’re too busy not to recruit, but probably not busy enough to put someone on.

How do you know when to put the next person on?

Good question! I suppose you just know. I remember recently I picked up on the fact that service was starting to slip a little bit in certain areas. We’ve got a policy where the managing agent has to phone the landlord once they get back in their car after the routine. Not to give them a run-down, but just to say ‘I’ve just done the routine at 1 Smith Street, just giving you a quick call.

You’ll get the report this afternoon’. It should be a 30-second phone call; it’s just another touch point with the landlords.

Landlords love it, but when we got stretched from doing so many routines they weren’t being done. If you see things start to slip a little you need to act very quickly. You need to have the right staff and the right number of staff.

What are your goals for 2017?

Continue growth organically, although now we’re in a position where we’re probably going to look at acquisition. But

get-go is right for everyone, though. I’m not sure you want to go into this business with a half-million dollar loan to buy an ‘old’ rent roll. I think that if you’ve got the opportunity to build a bit of equity in your own brand without having to spend any money – apart from operating costs – I think that’s a good opportunity first.

there is limited opportunity, Wagga has only got so many agencies and so many rentals that you can buy, but we’d like to be able to grow through acquisition as well as organic growth.

I think now that we’re sort of nudging 500 properties, we’ve got financial capacity. We don’t owe anything; there was a bit of start-up capital that we invested, which I’ve paid myself back for. So now we’ve got an asset that’s worth about $1.5 million, and it’s unencumbered. I think that there’s benefits to use that kind of capital to acquire.

I don’t think that acquisition from the

What are you speaking about at the Growing Stronger Together events this year?

Growth, of course! Growth is the thing that I always talk about; it’s the part of business that I’ve really enjoyed. Being able to sign a piece of business over any of the competitors that we may also have been up against is very satisfying. I really beat myself up if we miss out on business.

We’ve grown quickly, and if I can do it anyone can. It’s just about engaging with people – not so much about the listing presentation itself, or selling your services once you get someone interested; it’s getting someone interested. Getting them to recognise you as a presence, recognising your brand within the marketplace, and picking up the phone and calling you. ■

epm.eliteagent.com.au 29

FEATURE INTERVIEW

RENTAL REVOLUTIONARY GREG BADER IS THE NEW CEO at rent.com.au. After just six months in the job,

he is already shaking up the way that renters apply for property, as well as crafting an innovative pricing model where the agent pays zero unless the tenant also comes from rent.com.au. With the percentage of renters in today’s market continually growing, he says that the process of renting should be both ‘simpler and more fun for everyone concerned.’ Interview

by Samantha McLean.

F

irstly, Greg, tells us about your first few months at Rent. How has it been so far?

I came into rent.com.au nearly six months ago to look at their strategy. I really wanted to come up with something that was different to the other portals, for example to realestate.com.au and Domain. I felt we needed to stand for something; we are the

new kid on the block and we are rent only.

What struck me in the first few months was the process of renting, particularly for younger people, is more complicated than it needed to be. I thought there were better ways to make the job of a property manager easier, because I know it is one tough job!

But also for the flip side of that, for the person renting – to make it more logical and interesting, and easier for them as well.

30 ELITE PROPERTY MANAGER • FEB-MAR 2017

I also believe an opportunity exists to make the whole process less intimidating for most people, and much more simple.

Rent has been very innovative in product development over the last 12 months.

Let’s start with RenterResume.

RenterResume is something we have developed through consultation with renters and agents – a couple of focus

groups that we spend a lot of time with – and they basically told us what they wanted.

We launched that product a few months ago, and it is going ballistic! We have over 50,000 resumes now, at about 500 new ones every day. People are using these to enquire and apply for rental properties.

It’s a great tool from the renter’s point of view; they only have to put all of their information in once, and then it’s stored in a central database and can be used many times.

From the agent’s point of view, they receive a very rich source of renter information: who they are, their background, their previous history, employment history, pets – we have a pet resume as well. We also see this as a tool that benefits both parties.

You’ve also really shaken up the agent listings model with the new SmartPlan for agents. How does that work?

Property managers ask themselves (with good reason) ‘How many places do I need to list my property on?’. There are about 15 or so out there and we’d like to think we are in the top three for rental property. But still we are the new guy, so a fair question from a property manager is, ‘How am I going to find a good tenant with you?’ And we think that’s fair enough. So we are, in a way, guaranteeing it by only charging a fee if we find them a tenant.

Under SmartPlan a property manager can list any or all of their vacant rental properties, with the biggest ads on rent. com.au with no up front costs. There is a low advertising fee of $75, which is only paid for a listing when you find and approve a tenant through rent.com.au.

If we don’t find you a tenant, the listing is completely free. There’s no risk to the agent or the owner, no lock-in contract.

So we don’t expect a fee just for advertising, only when we’ve done some work. We think that sort of model is pretty logical and fair.

How are you attracting consumers or renters to rent.com.au right now?

There are three rules at rent.com.au which help us think about how we differentiate ourselves and which we think are fun and interesting for everyone: renters in suits, properties on pedestals and flicking the forms.

With ‘renters in suits’ it’s a philosophy where we want to present our renters to the agents better than our competitors do. And I think we have done that with RenterResume.

With ‘properties on pedestals’, we want

our properties to be no less informational than our competitors’ and then we like to add extra. Walk score is an example – we put this into all of our properties now; it’s not available on any other site. At no other time in history, I think, have we had more young people or professional people moving between cities and towns. They are all going into environments where sometimes they don’t know a lot about the area, so the walk score is just a simple, easy

ludicrous amounts.

RentCheck links in with RentResume.

A renter only needs to purchase the RentCheck once, and we store that for them to use on multiple applications, to highlight their standing and their credibility as a renter.

We’ve got other products coming that may be described as disruptive, but disruptive of the process rather than the individuals. Our products are there to make life easier for the individuals.

Where to next - what are your goals for 2017?

We are developing an ecosystem for renters, owners and agents. The real value though, I think, we’re yet to release.

“WE DON’T EXPECT A FEE JUST FOR ADVERTISING, ONLY WHEN WE’VE DONE SOME WORK. WE THINK THAT SORT OF MODEL IS PRETTY LOGICAL AND FAIR.” way of illustrating things like whether you need a car or not. And it’s a great example of a little bit of extra information that benefits the renter but also benefits the agent, because we’ve got a better-informed tenant moving into the property.

For renters that have completed their RenterResume, we also have a commute calculator, where we can actually show commute time from work to home. We want to take that further and provide richer features around it – for example, searching for a rental property around a particular commute radius.

Lastly, flicking the forms is about automating where we can and keeping the process simple.

What about some of the other products (RentBond, RentCheck) – what has the uptake been like?

We are blown away by the performance, December was our highest ever month and January has just smashed December’s record. RentBond in particular is going great. Once again, thinking about it from a renter’s point of view, if you’ve got a couple of thousand dollars tied up in an a bond that’s a lot of money, so financing it over six months is a no-brainer. We do charge an interest rate, but we are not talking

One of the passion points for me is that by virtue of creating the RenterResume, and starting to gather history on a person who has rented a house for 12 months or has had a positive reinforcement from the property manager, we are able to start highlighting Australia’s really valuable good tenants.

Where I would love to take this in six months, 12 months, is to make things even easier on everybody. For example, if we’ve got a really great agent and a really great tenant joined together in a property, why would we need an inspection on a quarterly basis which perhaps just wastes time and energy for everyone?

I’m hoping we can get to a point where, without any additional effort from anyone, we can start to personalise the renting process a bit more. So if you are a great renter and you’ve got 10,15, 20 years of good rental record behind you, why make it harder? Why not make it even easier by providing longer-term leases and things like that?

We want to be the default place where renters come – we see 2017 as our year to get bigger and better. I would definitely like to close this year out with a large percentage of this country’s rentals coming through us! •

epm.eliteagent.com.au 31

BUSINESS DEVELOPMENT

A SMOOTH TRANSITION WHETHER YOU’RE AN eager BDM wanting to impress

the principal, or an enthusiastic and driven property manager, rent roll growth is usually the common goal. Kasey McDonald discusses why a strong handover connection between the two is vital for everyone, including the client.

L

ET’S FACE IT – everyone wants

to grow their rent roll. After all, with growth comes more opportunity for success all round.

In my experience as the owner of a franchise real estate office, and as a successful property management BDM, a lot of real estate companies make really common, crucial mistakes in their attempts to grow their portfolio – many of which I’ll be addressing at the RETG tour in 2017.

But there’s one I want to focus on right now.

We all know that hiring a good BDM is a surefire way to stimulate growth.

However, it’s all good to have your BDM out there generating leads and securing new business, but not if that new business is lost within the first three months. I see it happen a lot.

Why is that?

Where I see a lot of divisions fail is in the hand over process from BDM to property manager. A lot of hard work is wasted

when a BDM works tirelessly on securing a new landlord (sometimes a relationshipbuilding process that can take 12 months), only to poorly manage the internal hand over process and lose the client within the first three months.

Remember, the BDM has most likely secured the new business through building a relationship with the property owner over a period of time. This relationship is often devalued when a BDM handballs the property owner to the property manager as soon as he or she has signed on the dotted line.

I’ve done things a little differently in my career and it’s worked a treat.

If I secure a new property owner and their property is vacant, I make sure I’m the one who leases it. Traditionally, a property manager will carry out this process. However, I’ve found that the property owner has built a rapport with the BDM and appreciates them taking the time to find the right tenant.

After all, I’m in the best position to know

32 ELITE PROPERTY MANAGER • FEB-MAR 2017

exactly the type of tenant the owner wants, because I’m the one who’s been talking to them for the past year or so. By then, I often know about their family, where they go on holidays, why they bought the property. Everything.

So let’s at least give them the decency of a smooth hand over so they can also start building a rapport with the property manager. Remember, this also takes time.

In the meantime, the BDM should find the tenant, continue liaising with the property owner and even conduct the first inspection.

Yes, you read that correctly. Doing the first inspection as the BDM shows the property owner that you care about how the property, and the tenant, is going for them. I also make sure I call the property owner 30 days after the tenant is secured to ensure the end of month payment went through and to give them the opportunity to voice any concerns they may have.

It all seems like a fairly simple strategy – for the BDM to find the first tenant and do the first inspection – but it’s not commonplace. So many BDMs get it wrong when it comes to transitioning new business to the property manager.

I first introduce the property manager to the owner about 48 hours after the agreement is signed. Then we have a system in place that transitions the owner/property manager relationship. It works really well.

What most people don’t realise is that the hand over process never really ends.

WHAT MOST PEOPLE DON’T REALISE IS THAT THE HANDOVER PROCESS NEVER REALLY ENDS. Any good BDM will strike a balance with their property owner to sustain an ongoing relationship while not hindering the relationship that is forming with the property manager. It is an ongoing process, and when BDMs and property managers start to realise that, they’ll start to find the holy grail too. ■

KASEY MCDONALD is the Business Development Manager for Vystal Property Group and is the Co-Founder of Real Estate Training Group (RETG). You will also get to see Kasey at RETG’s ‘Growing Stronger Together’ tour in 2017. For more information visit retgevents.com.au.

DON’T MISS WHAT EVERYONE IS TALKING ABOUT

#thebrief brings you the latest real estate news, tech and marketing tips, how-tos, and inspiration.

We don’t discriminate; property management and sales both get a look-in.

Delivered straight up (no decaf) every morning to your mobile.

BE THE ELITE

eliteagent.com.au/subscribe

TECHNOLOGY

FOUR WAYS TECHNOLOGY IS CHANGING THE BUSINESS OF REAL ESTATE REAL ESTATE AGENCIES

across the country are developing new techniques to streamline services and keep up with emerging trends.

T

echnology has come a long way from the first set of bulky computers in your local real estate office. With advancements in technology occurring rapidly, real estate agencies across the country are developing new techniques to streamline services and keep up with emerging trends.

According to the Australian Bureau of Statistics, each Australian spends an average of 10 hours online per week – with those in younger age brackets spending up to 18 hours on the net every week.

The continued rise of the internet as a primary source of information and advertising has provided extensive opportunities for those in the real estate industry to expand in the online sphere.

So what are the biggest advantages of new technologies for real estate agencies?

1

NEW WAYS TO REACH CUSTOMERS Gone are the days of only reaching potential buyers or tenants via newspapers,

magazines and word of mouth. A study conducted last year by realestate.com. au found that 78 per cent of consumers were accessing property listings and information online – rather than through traditional methods – using smart phones, laptops and tablets. Digital technology has provided myriad new opportunities for agencies to market services and properties to a broader audience using digital platforms and online listings.

Many real estate companies have chosen to move with consumers, shifting their focus to list properties on their own websites and real estate portals, using social media platforms in a client-friendly way and engaging personalised targeted marketing techniques. Mobile content and marketing is one of the biggest targets for agencies, with around 80 per cent of Australians consuming information using devices that fit in their pockets. Optimising websites and delivering advertising that is mobile-friendly can do wonders for a marketing campaign.

2

INTEGRATED INTERNAL PROCESSES Real estate is a paper-heavy industry, with many documents to keep track of internally and externally. For most real estate companies, electronic document management systems are either already in place or in the process of being completed. Agents are saving extensive amounts of valuable time by managing their documents using

34 ELITE PROPERTY MANAGER • FEB-MAR 2017

internal digitised systems. There are mass-market document-sharing and digital collaboration tools like Dropbox and Google Drive, as well as specialised document management software for the real estate industry, like Rockend’s fileSMART. Financial transactions are also made easy with cloud-based accounting software and online banking tools – all information is stored and can be shared securely, software updates automatically and business accounting costs are drastically lowered. In an industry like real estate, with its unique requirements, our company, Rockend, has made specialist accounting software for a long time with REST Professional. More recently, it has moved into the cloud with PropertyTree.

Processes surrounding contact databases and recording or accessing client information have also been remodelled as technology advances.

Agents can take down contact details of potential clients using smart phones, set up regular or automated messages advising clients of new properties on the market and even send clients a text when their lease application or price offer has been processed.

3

INCREASE IN POSITIVE COMMUNICATION The real estate industry revolves around people, and innovations in technology have led to an opportunity

for greater communication between agencies and clients. Where in the past agents may have spent precious time playing phone tag with potential clients or having face-to-face meetings, many now use email or online contact forms as their first port of call and primary form of communication. In turn, clients are finding it easier to access information about listings, specific real estate offices and contact information for particular agents.

Online listings have also helped to streamline the communication process.

If a listing is effectively detailed and

ACCORDING TO THE AUSTRALIAN BUREAU OF STATISTICS, EACH AUSTRALIAN SPENDS AN AVERAGE OF 10 HOURS ONLINE PER WEEK.

contains great imagery, potential buyers won’t need to contact agents with initial questions about the property – and their first contact will likely be to arrange a viewing. Clients can do their own research, from viewing the original listing, to looking at a satellite view on Google Maps, to searching for past sale or rental prices of the property. Agents have an opportunity to steer clients in the right direction, using their inside knowledge of the local market and specific property to pass on further information and close the sale.

4

INNOVATION IN INFORMATION EXCHANGE Not only do new technology and digital advancements mean that agencies can remain in contact with clients and colleagues using smart phones and tablets – it also means that they can present information to potential buyers or tenants in new, innovative ways. Many digital consumers are leaning towards video content, with a 2015 Nielsen report stating that at least 55 per cent of all Australians – and around 73 per cent of 16- to 24-year-olds – are choosing to

view online video content over regular broadcast television.

Video content like visual walkthroughs of properties can be utilised extremely effectively on property listings, adding an extra element to the portfolio. Video advertising is also on the rise, particularly on social media platforms like YouTube and Facebook, where consumers are much more likely to hit ‘play’. Embracing and trialling new technologies can give agencies an advantage over competitors and help listings stand out to clients.

Technology has revolutionised the way that real estate agencies and their clients can operate and communicate. Agencies that enjoy embracing new technologies and incorporating different processes into their workflows have the chance not only to impress customers – but to remain a step or two ahead of the competition. ■

SARAH DAWSON is the head of real estate sales for Rockend. For more information visit rockend.com.au.

MUSCLE UP AND RAISE THE BAR IN REAL ESTATE SPECIALIST REAL ESTATE ADVISORS AND ACCOUNTANTS At businessDEPOT, we’ve got a unique insight into what fuels the fire - this allows us to package specialist tax, accounting and business advice to raise the bar of your real estate business. Get in touch with John Knight and his team to #MAKEITHAPPEN. businessdepot.com.au

info@businessdepot.com.au

We also help with: commission structure reviews, advisory board participation, cashflow & profit projection, tax minimisation strategies.

07 3193 3000

epm.eliteagent.com.au 35

PRODUCTIVITY AND BEST PRACTICE

TUNE UP YOUR ENGINE ROOM FOR 2017 WHEN WAS THE LAST time you gave your property

management department a compete service checkup? Is it in the best shape to help you achieve your goals for 2017? Heidi Walkinshaw of Real+ takes a look at some of the key areas that might be in need of a tune up.

W

HEN WE SET OUT

our goals at the beginning of the year, we look at the bigger picture of what we would like to achieve. After that, we start to think about how we are going to get there.

However, if we drill down further when we are putting those plans in place, we should be asking ourselves: do we have the systems and processes to make that happen?

In property management, some of the areas that you might like to look at are: 1. RENT ARREARS – What is your current arrears rate? Is it under or over that

off for annual leave and public holidays.

Try to steer away from the Christmas and January period.

golden five per cent mark? There may be some regulars popping up on those lists who need a little tough love. Maybe one resolution that you might like to make this year is to get tougher on those frequent late payers.

3. RENT REVIEWS – Is there a system in place for reviewing rents? One trap that property management teams often fall into is not reviewing the rent, or not keeping reviews in line with current market conditions. When you are reviewing those rents, it is important to ensure that you have some comparables of the current market to support your evidence for either maintaining the rent at its current level or implementing an increase. This can assist with reducing possible disputes.

2. ROUTINE INSPECTIONS – Are they currently up to date and is there a schedule set out for the year? Sometimes when we visit offices they assure us that their inspections are all in order, but the data we find tells a different story. When you are planning out those routines, keep in mind a few factors, including the number of inspections per year that you are promising your owners and allowing time

4. LEASE EXPIRIES – Many owners’ insurance policies include a requirement that there must be a fixed term tenancy agreement in place at all times. If not, the owner may not be covered should any mishaps occur at the property. It is important to ensure that you have the details of the owner’s insurance whilst you are managing the property and have any requirements noted in

36 ELITE PROPERTY MANAGER • FEB-MAR 2017

your computer software for access and information.

ensure a smooth transition into your agency’s expectations for all parties.

5. REPAIRS AND MAINTENANCE – Are all maintenance activities up to date? Is there a process in place to ensure that work is completed in a reasonable amount of time, to an acceptable standard, by the

ONE RESOLUTION THAT YOU MIGHT LIKE TO MAKE THIS YEAR IS TO GET TOUGHER ON THOSE FREQUENT LATE PAYERS.

6. ACTIVE AND INACTIVE PROPERTIES – Sometimes when we visit offices a business owner will advise us that they have X number of properties under management.

However, as we start to delve into the data we may find that X actually happens to be Y. This can sometimes be as a result of lost managements not being marked inactive or recorded correctly in the system.

Having a system where owners, properties and tenants that are no longer under management are marked inactive can assist with an accurate reflection of numbers.

tradeperson, with the invoice received and payment made promptly? Details of your tradies should also be audited regularly, ensuring that they are up to date with any relevant licences and insurances required to cover not only themselves and the owners and tenants, but to also reduce any liability to your agency. An induction with any new tradespeople is also recommended to

7. COMPLIANCE – With changes to legislation around compliance occurring regularly, it is imperative to ensure that your teams are trained in the latest requirements to provide the best possible service and, more importantly, reduce the liability to your agency. Are your systems up to date with areas such as smoke alarm and pool compliance? What about window locks and blind cords? Are insurances up to date and all legal documents, such as your Management Agency Agreements,

Residential Tenancy Agreements and Condition Reports, completed correctly and in line with legislative requirements? These are areas that can raise red flags and may land you in hot water if they are not to code.

Thinking about your property management engine room, if you were to put a tick or a cross against the areas above, how well would your department score? Is the engine purring like a kitten, or rattling along with a bit of rust in the pipes?

These are just a few of the areas we look at when assisting departments in getting into the shape they hope to achieve. If you would like to see how we can help, give the team a call and we can find a solution to help you achieve those 2017 goals. ■

HEIDI WALKINSHAW has been immersed in property management for over 14 years, dealing in all aspects from leasing to property management, business development and team management. She is now a coach with Real+ and is passionate about system implementation, procedures and team training. For more information visit realplus.com.au.

Extend your brand and service with We take care of your clients and you get all the rewards.

Your own group of Account Managers.

A dedicated Partner Support team.

Quality service.

Connection guarantees for your clients.

Access to energy deals for your business and home.

Our rebates, bonuses and incentives take the cake.

Transparent reporting.

Single point resolution.

Call 1300 554 323 Email partnersupport@connectnow.com.au Visit connectnow.com.au

epm.eliteagent.com.au 37

PRODUCTIVITY AND BEST PRACTICE

DID YOU KNOW THAT

it can take as little as seven seconds for someone to make a judgement about you based on influences and experiences in their lives to date? Warren Tate explains why you need to be conscious of the impression you are leaving.

T

he moment a stranger sees you, his or her brain is making millions of assumptions and computations. In fact, the human brain takes in 40 pieces of information every second and quickly starts to make sense of the surroundings. Are you friend or foe? Are you someone to approach or to avoid? Are you trustworthy, competent, likeable, confident? Do you have status and authority?

These assumptions are made in the blink of an eye – in the first seven seconds of meeting you, people can make a definitive call on whether they want to work with you or not.

FIRST IMPRESSIONS ARE SIGNIFICANT While you can’t stop people from making snap decisions, you can understand how to make those decisions work in your favour.

COMMUNICATION CHANGES YOUR DESTINATION socially, culturally and in business, we have built up patterns on what we think when we see people in different forms of attire.

If we see something out of ‘our’ ordinary it stands out, grabs our attention and we question, make assumptions or judgements. If we conform, we fit in and

RALPH WALDO EMERSON SAID, “WHAT YOU DO SPEAKS SO LOUDLY THAT I CANNOT HEAR WHAT YOU SAY.” First impressions are more heavily swayed by non-verbal cues than verbal cues. In fact, studies have found that non-verbal cues have over four times the impact on the impression you make than anything you say. First impressions are also influenced by how you dress.

Let’s be honest; through our upbringing,

look the part and the same as others.

People will judge you by what you wear; that is not going to change, so wear what you feel comfortable in. Be authentic to who you are and own it.

If you have a choice of dressing up, fitting in or dressing down, what would you choose? By taking a little effort and

38 ELITE PROPERTY MANAGER • FEB-MAR 2017

choosing to look the best you can, people will notice and you will be perceived differently. However, always be yourself, because how you dress will only take you so far.

IT’S NOT WHAT YOU SAY, IT’S HOW YOU SAY IT If I asked you what had more impact on you when you were making small talk or having a business conversation with someone, would you say it was the words they spoke, the way they sounded when they spoke those words or the look on their face when they were speaking?

If you were not clear about what their words meant, or what they were emphasising with the words, you will lean heavily on how they looked and sounded when speaking to figure out what they were actually talking about.

Albert Mehrabian has conducted extensive research into communication and found the impact of a message on a receiver,

its perceived meaning, is based not on what was said but on how it was said.

Results showed 55 per cent of the meaning or the impact the person made came from the look on their face and about 38 per cent from the tone of their voice.

Now that doesn’t leave much room for the words – only 7 per cent. We have been using this kind of information for many years. How is it that people understand, or fail to understand, messages that are communicated to them in face-to-face conversations?

Our non-verbals operate in three ways in our direct communication: 1. They can affect the actual meaning being conveyed verbally 2. They can shape the type of relationship that we are creating with another person 3. They can directly communicate our emotion before and during speech.

Albert Mehrabian’s findings have been applied to all communication by many who present communication coaching sessions. However, they were the results of experiments that involved communication of feelings and emotions, not the majority of everyday face-to-face interactions.

NON-VERBAL COMMUNICATION Non-verbal cues can affect overall communication or conversation in a number of ways.

First of all, there could be a substitute for a verbal message. You enter a room when you are having a bad day; you have a defeated look, poor posture, drooping shoulders – nobody needs to ask you how your day is going. You’ve already told them.

Ralph Waldo Emerson said, “What you do speaks so loudly that I cannot hear what you say.”

Your body language sends its own message; this is where non-verbal reinforces the verbal message, such as pounding the table to show how angry you are while you are actually speaking in anger. You can contradict yourself; a person who is about to give a speech may say they are not nervous while they are sweating and pacing. Someone who says, ‘I am not angry!’ in a loud and confronting manner is very contradictory.

Secondly, non verbals can shape the kind of message you are creating with another. The way we look at people makes a great difference to how we feel about the connection between us.

How long we look into someone’s eyes while we talk, the proximity or distance between us, whether or not we touch them, how we raise or lower our voice when we talk to them – all these are representative of relationship through non-verbal communication. Interpersonal communication always has content and relationship dimensions.

The third aspect is that non-verbals simultaneously communicate our feelings without words. The look on our face and the sound of our voice create and convey emotions or feelings when we are sending a message. Face to face is the primary signal system for communicating emotions.

Face-to-face communication is the number one determining factor in real estate success. Communication changes your destination. ■

WARREN TATE has worked within the real estate industry for over 20 years.

He will be speaking at RETG’s ‘Growing Stronger Together’ tour in 2017. For more information visit retgevents.com.au

Rebecca is feeling calm She found the perfect solution for managing and tracking keys with Keylog You too can feel like her...

FREE scanner* for new customers ends 28th february 2017

For more information visit EPM.keylog.com.au *Comditions apply

Designed by Jcomp / Freepik

Email: hello@keylog.com.au Live chat: keylog.com.au epm.eliteagent.com.au 39

The Last Word

Fiona Blayney

COFFEE AND CROISSANTS Calm after the storm: A major house renovation highlights vital lessons about excellence in customer service for Fiona Blayney.

T

here is something about watching mere mortals attempting to renovate what appears to be the ‘unrenovatable’ (and yes, I’m sure that’s a word) in a matter of weeks, with limited to no experience, whilst living through the unlivable.

Now that I think about it, watching reality renovation shows for someone who has never renovated is akin to being an armchair sports person. We are all brilliant at reading every play when we have a helicopter view of every person on the field, a standard resting heart rate and a beverage in hand in the temperature-controlled conditions of our lounge room.

Then one day you take to the field, or in the case of renovating you step on site, and eventually you are hit by that moment where you finally

move back in.

It was 4:30 am the morning of move in; the trucks of our ‘stuff’ were to arrive, much of which was in storage and I had not seen for 10 months (the story of culling is for another day), and we were heading to site for 5 am to make sure the floor that had only been sanded the evening before was dry. And whilst they were all dry, redoing them has been added to the list; think corroded rollers leaving residual fibres embedded in

ALL WE NEEDED WAS SCOTTY CAM TO CALL IN AND SOME JUDGES TO ARRIVE, AND WE WOULD HAVE SURELY COMBUSTED INTO A HOT MESS. understand what it feels like five minutes before room reveal – oh my goodness!

In recent weeks we came to the end of our own renovation reality show. Well, let’s be honest; as anyone who has done a renovation will attest, it hasn’t come to an end but it reached the point where we could stop paying rent and

the polish, not unlike the fluff on your windows after wiping them with paper towel. Happy camper – not! On we soldier yet again… time is ticking.

By 7am we had four cleaners, three builders, two painters, an electrician, plus two nervous owners awaiting the removalist van at 8:30. By 9:30 we had three removalists,

40 ELITE PROPERTY MANAGER • FEB-MAR 2017

and if you add the plumber, a silicon trade plus the shower guy, you have a pretty good impression of what the place looked like throughout the day. Oh, and don’t forget the well-intended family members and neighbours dropping by to help. All we needed was Scotty Cam to call in and some judges to arrive, and we would have surely combusted into a hot mess.

It stands to reason that renovating a 130+ year old house will have its challenges: water, drainage, footings and wrong measurements. Of course, with any build there are the standard tradie slip-ups, neighbour disputes and my changing my mind at times.

So what it takes to complete a renovation of this size, where at the end you are inviting your builder and his family over for a BBQ because you’re missing your daily chats, provides some fantastic lessons in life and business.

In what has been the most challenging year of my life yet, I have learnt about myself, my relationship and my business from a place I had not envisaged 12 months ago: from someone affectionately known in our family as Paul the Builder.

(If you ask my four-year-old, Paul is responsible for every build you see in Sydney.)

Paul reminded me that, not just in real estate but in business everywhere, we all want our service suppliers to provide the same thing: to understand our vision, become

our partner in the process, keep communication at an all-time high and look for the small things that could make a massive difference. For us, this cost the sum total of $50 – the removal of a 30 cm wall nib which single-handedly transformed the feel of the house.

We don’t want to feel like a problem, like we are too much trouble; we want to be kept away from problems yet aware of process and progress. Paul, despite his heavy load, ensured he delivered on all of the above, including the technical side of our build, as expected – I think sometimes we forget the automatic assumption that we can do the technical.

In reading my description of room reveal day, you may have had faint heart palpitations just thinking about the ferocity that was seething through the house. In reality, it was a really calm environment. Paul turned up with coffees and croissants for the crew, and everyone moved to a rhythmic beat towards the deadline. It was Paul’s beat: a technically proficient business operating from a place of authenticity, love and care.

I hope your clients can say the same of you. ■

FIONA BLAYNEY is the Founder and Director of Real+, an industry-first property management learning platform.

For more information visit realplus.com.au.

•

WHAT TOP BD PERFORMERS ARE DOING NOW

READER SURVEY:

5 PROPERTY MANAGEMENT BUSINESS STRUCTURES AND WHEN TO USE THEM UNDERCOVER TEMP

LEARN FROM THE BEST #09 DEC 2016/JAN 2017

50

THE MATHEMATICS OF PROPERTY MANAGEMENT WITH BOB WALTERS

LEARN FROM THE BEST #02 OCT/NOV 2015 AU$9.95 + POSTAGE

FRONT DESK TO BUSINESS OWNER

LESSONS LEARNT IN REALLY BIG BUSINESS

LAURA LEVISOHN

5 STEPS TO DESIGNING THE IDEAL WEEK

TOP TIPS FROM TRANSFORM PM

EMPOWERED LEADERSHIP MEGAN HARRIS

IMPLEMENTING NEW TECHNOLOGY AS A TEAM

WHO’S BEHIND THAT DOOR?

MAKING INSPECTIONS EASY

SAFETY TIPS FOR PMs

BEST OF BOTH WORLDS An exclusive

LEARN FROM THE BEST #05 APR/MAY 2016 AU$13.50

outsourcing case study with Miles Real Estate

3 TECH TRENDS THAT WILL IMPROVE YOUR BUSINESS

7 FUNDAMENTAL REALITIES OF CUSTOMER SERVICE

ACCOUNTING FOR SUCCESS

CAMERON GARRY E OF

• WIN ON

THE ART OF PERSONAL COMMUNICATION

WHAT REALLY WORKS FOR SUCCESSFUL PM MARKETERS

CLOSING THE AIRBNB LOOPHOLE

LEARN FROM THE BEST #07 AUG/SEP 2016

THE ADVANTAGES OF CO-OWNERSHIP

#03 DEC/JAN 2016 AU$13.50

MAXIMISING YOUR BRANDING IN A LISTING PRESENTATION SAYING GOODBYE TO BAD HABITS

FLIP MAGAZINE OVER FOR

EXTREME PROPERTY MANAGEMENT OVERCOMING OWNER OBJECTIONS

#15 FEB -MA

SALES

LEARN FROM THE BEST

GOING ALL IN WITHRRIS PHIL HA

E V I T C E L L O C SUCCESS GRREGOIONAL

LEARN FROM THE BEST

M ASTER DAVE SKOW, WAGGA

5 WAYS TO IMPROVE YOUR CONVERSION RATE PAGE 20

THE ART OF STORYTELLING PAGE 54

LEARN FROM THE BEST

LEARN FROM THE BEST

#08 DEC/JAN 2016 AU$13.50

WHY 3D REAL ESTATE LISTINGS WILL BE THE NEW NORM 30 BUSINESS BOOSTING IDEAS FOR

2016 12 WAYS TO IMPROVE YOUR MARKETING

• WIN ONE OF SIX PLATINUM AREC16 TICKETS SEE PAGE 2 FOR DETAILS

EFFECTIVE SALES SALES MANAGEMENT STAFF PAY How to get the most PACKETS from your team What’s working?

THE TOP 10 MISTAKES BARRY OF NEW PLANT PRINCIPALS

From Bell Ringer to Master Auctioneer

8 STEPS TO OWNING PLAYING YOUR T0 WIN MARKET IN 2016

Kate Strickland BATTLE OF THE SEXES

Who’s better at selling real estate – men or women?

LET GO TO GROW PAGE 26

#14 DEC 2016/JAN 2017

THE REFERRAL SYSTEM THAT REALLY WORKS YOUR SAY

Our 2016 Sentiment Survey

BUYER PERCEPTIONS HOW DO YOUR CLIENTS RATE YOU?

LEADING PROFILE THE CHARGE THE ART

Glenn Curran

STARTING OUT RIGHT

The road to success

MAKING THE MOVE

PAYING REVENUE SPLI – THE PRO AND CON

SUZIE HAMILTONFLANAGAN

5 EMERGIN TECHNOLOGIE TO HELP YO STAND OU

LEARN FROM THE BEST #08 OCT/ NOV 2016

THE FUTURE OF PROPERTY INSPECTIONS

FLIP MAGAZINE OVER FOR

NORTHERN EXPOSURE JOELY SULLIVAN + JO GRIFFITHS, NOW LEASING NT

REALESTATE.COM.AU SURVEYS LANDLORDS // TECHNOLOGY + CHANGE: A UK PERSPECTIV PM TRANSFORM: HALF-WAY POINT CHECK IN // UBER-PROOFING IN THE AGE OF DISRUPTIO

SUBSCRIBE

Every residential real estate office in Australia receives one FREE copy of the combined publication Elite Property Manager/Elite Agent Magazine.

If you would like your own personal or additional copies of the magazine, you can subscribe to have them delivered to your office or home address.

A one-year subscription of six issues is $79.99 or two year subscription of 12 issues is $149.99 inc GST.

eliteagent.com.au/shopnow This offer is only available to Australian offices.

International offices please visit iSubscribe.com.au.

MISSING AN ISSUE? eliteagent.com.au/backissues

T THE ‘HIT AND STICK’ PHILOSOPHY PAGE 30

THE DREAM TEAM PAGE 48

LEARN FROM THE BEST

#09 FEB/MAR 2016 AU$13.50

MAKIN YOUR SMAL BUSINES APPEA LARGE

HOW TO PULL OFF THE PERFECT LISTING PRESENTATION

You can order back issues of individual magazines or the entire 2015 and/or 2016 years' publications.

PROPERTY MANAGEMEN HITTING A HOMERUN PAGE 16

#04 FEB/MAR 2016 AU$13.50

MASTER YOUR DATA

OF SUCCESS MELBOURNE REAL ESTATE

WHAT DOES A NEXT LEVEL BDM LOOK LIKE?

TIME TO TAME YOUR DATABASE

RKETING

CHOOSING THE RIGHT TENANT

#06 JUN/JUL 2016

COMMUNICATION CHANGES YOUR DESTINATION

+ WTH

DO YOU HAVE AN EXIT STRATEGY

LEARN FROM THE BEST

8 WAYS T BECOM A BDM TRAILBLAZE

IS ARTIFICIAL INTELLIGENCE THE FUTURE OF SERVICE?

#10 FEB-MAR 2017

SLIDING DOORS

110 PAGE SPECIAL EDITION

7 WAYS TO RAISE THE BAR IN 2017

OM THE BEST LEARN FR R 201 7

MA EED WHY YOUANPLAN TO HAVE

HOW THE APRA CHANGES MAY BE AFFECTING YOUR LANDLORDS

Proudly supporting AREC May 22nd & 23rd ›

Upgrade your free plan for greater benefits ›

RMAN + JARROD CA JOEL HOOD

ANTHONY CARDINALE

Dedicated to rental property

Dedicated to rental property

INTERVIEW

THE EXTRA 1%

THE FOUR PILLARS OF PERSONAL BRANDING

STRIKING THE THE MEASURE RIGHTSABINA BALANCE ALDOUBY

TAILS GE 33 FOR DE KETS SEE PA AREC17 TIC UM IN AT SIX PL

9 COMMON COLD CALL NS OBJECTIOW TO AND HO TH EM E HANDL

2016: READY, SET, GOAL!

LEARN FROM THE BEST

ORM TIME TO TRANSF THE PM TEAM CHALLENGE

FEATURE INTERVIEW NAOMI SIMSON SPEAKS ON PRODUCTIVITY AND LEADERSHIP

A DAY IN THE LIF OF A PROPERT MANAGE WITH HAYLE MITCHEL

MARKETING SPECIAL

FIND OUT MORE ON PAGE 31

OF REAL ESTATE IN NYC

10 THINGS NEW AGENTS NEED

TECHNOLOGY

10 DIGITAL TOOLS TO SUPERCHARGE YOUR MARKETING MARKETING

MAKING EVERY PROSPECT COUNT

SONYA TRELOAR PRECISION AND PERSONAL BRANDING

• HOW ARE THE TRANSFORM SUPER SIX GOING? FOR UPDATES AND COACHING TIPS SEE PAGE 16

WILL THE NEW DRONE RULES WORK FOR YOU? PAGE 18

LEARN FROM THE BEST

LEARN FROM THE BEST

#10 APR/MAY 2016 AU$13.50

4 RULES FOR BUILDING A WORLD CLASS REFERRAL NETWORK 5 TRENDS THAT MAY INFLUENCE PROPERTY IN AUSTRALIA COMMUNITY ENGAGEMENT

5 ways to build your profile

HOW TO BEAT CALL RELUCTANCE PAGE 34

THE NEW REAL ESTATE BUSINESS MODEL PAGE 46

LEARN FROM THE BEST

#12 AUG/SEP 2016

7

IS YOUR DATABASE FIT OR FAT? STEPS TO

IMPROVING

THE YOUR AWESOME CONFIDENCE HUMAN MANIFESTO MARKETING

#13 OCT/NOV 2016

SURVEY

WHAT SPECIAL REPORT EXTRACT HELPS BIG DATA AND YOU TO THE FUTURE OF EARN PROSPECTING MORE

FEE NEGOTIATION

How to get what you’re worth

THE NOW GENERATION OUWENS CASSERLY

THE ANNUAL TECHNOLOGY ISSUE

TOM PANOS

IS THE SOCIAL WORLD

THE GETTING CLOSER TO TRUSTED THE LISTINGS ADVISOR WORLD?

Stefanie Dobro

PUBLISH AUSTRALIA 2016 BUSINESS MAGAZINE OF THE YEA

PLAYING THE LONG GAME

FLIP MAGAZINE OVER FOR

SMART SMS // CONTENT MARKETING 101 // CHOOSING THE RIGHT CR