Sold1 August/September 2013

The Magazine for Real Estate Professionals georg chmiel on his

first year at lj hooker

mystery

shopping the competition improving property value with

feng shui

in

short supply how will your stock levels change in the next 12 months?

successfully combining online and offline

advertising

is your property management business flying economy, business or

first?

Editor’s Note I

t’s just like moving into a new home.

You start by packing up all your old stuff, throwing the ‘tired’ stuff out, and trying to imagine what your things are going to look like in your new abode.

When you first arrive with the removalists, it looks like a bit of a shemozzle and you wonder how you’re ever going to get things to look the way you would like them to again.

And then you kind of get a vision of what it might look like when you’re finished, and have just a little smile to yourself.

And so you push and shove the big pieces of furniture around that you would never let go. Those pieces are timeless and would look good anywhere. And you can safely say they fit well in your new home too.

Then you realise after the ‘cleanup’ that you have a few gaps to fill, and then comes the ‘fun part’ when you can go shopping to splash out on a few new things to liven up the place; make it fresh, really put your stamp on it, and make it your own.

And once all the boxes are unpacked, you shuffle things around endlessly until everything has its place, looks amazing, and you feel as though you can collapse on your well placed couch, exhausted but happy with a glass of wine in hand.

But it doesn’t finish there. You continue see little things that you put on the to-do list over the coming weeks and months and you think, “wow, if it looks good now, imagine what it will be like when I’m really done!” And then you get up and do some more…

I’m the sort of person that is never really done; there is always room for growth, change, and improvement. (They invented that expression ‘don’t let perfect get in the way of done’ just for me!) And I guess, by now, you’ve probably realised that we are not really talking about moving homes – we are talking about the creation of this magazine, and the new Sold1 brand.

Throughout the magazine you will see the familiar pieces of furniture, as well as some new additions. The one thing that will always stay the same is our promise to bring you material that will help you to “List More, Sell More, and Be More Efficient!”

You’ll find all your favourite contributors in this issue, including Lisa Tremolada, Glenn Twiddle, Ian Grace, Jason Hellyer, Dave Eller, and Matt Ciallella. And you’ll find some new columnists in here as well. We were privileged enough to have the president of the REIA, Peter Bushby to write a column for us. We have a brand new regular column by Home Stager Janne Petrie. We are continuing the “In their own words” series with a fantastic profile on Mosman agent Peter Shiplee. And we even managed to get LJ Hooker boss Georg Chmiel to pick up the pen.

Samantha McLean – EDITOR. Email me at: samantha@sold1.com.au Follow me on Twitter at: @samanthamclean 2|

For our cover story in this issue, we asked to a number of top franchise CEO’s and industry authorities, such as Tim Lawless and Chris Gray comment the state of the nation with respect to the supply and demand for property.

Often is the case in a large and diverse country such as ours that there are many property markets operating within the one “market”. So it’s difficult to draw conclusions that covers all aspects. There are areas suffering severe housing shortages, while there is plenty of room in others.

Industry revenue has slowed somewhat with the lack of listings available. But on the other hand, overall consumer sentiment is up, auction clearance rates are up, mortgages are up, and with interest still coming down it appears the slow measured recovery from the GFC will continue. But I think our leaders could still need to manage the economy better, so that we live more within our means.

We know there is always going to be volatility and uncertainty within the market, and I’m also squarely with those that say “it doesn’t matter what set of cards you are dealt, it’s the way that you play them as an individual, or as a business that will determine your path to success or failure”.

It’s up to all of us to take responsibility for our own destiny by ‘doing’ rather than finding excuses. The excuses will always be there, and they will only ever hold us back.

That’s it from me for now. Except for one last thing: I’d like to thank my new family at Redhouse Media Group, particularly Michael, Mallika, Vanessa, and Chris, who have made me feel warm, welcome, and at home in my new place, and have also worked tirelessly with me to bring this magazine to you.

So now it’s time to take a break from the ‘furniture shuffling’ and invite some friends over. I hope you like the new place.

The Magazine for Real Estate Professionals

Management Samantha McLean Managing Editor samantha@sold1.com.au Vanessa Adaimy General Manager vanessa@sold1.com.au

Creative Design Chris Jardine Senior Creative Director chris@sold1.com.au Toni Bernal Online Creative Director toni@sold1.com.au

Sales and Marketing Mallika Naik National Sales and Marketing Manager mallika@sold1.com.au Mobile 0420 273 505 Liz Lohan Sales and Marketing liz@sold1.com.au

Administration & Subscriptions Jess Greig-Canty Accounts Manager jess@sold1.com.au

Website www.sold1.com.au

Editorial submissions The publisher welcomes editorial submissions from active individuals and organisations either within or ancillary to the real estate profession. The publisher reserves the right to edit, modify, reject or contribute to the content of material provided. All submissions should be directed to: editorial@sold1.com.au

Trade Mark is a registered trade mark of RedHouse Media Group Holdings Limited ABN 92 122 495 274

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Sold1 Pty Limited ACN 145 535 726

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Phone 02 9659 5246 Fax 02 9659 5247 Suite 203, Level 2, 2-8 Brookhollow Avenue Norwest Business Park, Baulkham Hills NSW 2153 PO Box 7542, Baulkham Hills BC Baulkham Hills NSW 2153 www.redhousegroup.com.au

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contents 18

27

Regulars

Opinion

06 | Events Calendar Dates for your diary – industry conferences and events.

08 | Realty Bites News, announcements and new products direct from the industry.

14 | Open Home – Spring is in the air Our Home Stager Janne Petrie helps your vendors get their homes spring sale ready!

16 | Tech in the City – Person to Person Lisa Tremolada discusses video calling as another way to build relationships and differentiate from the competition.

18 | Rural Roundup – Follow the Leader Jason Hellyer draws some parallels between the recent political leadership spill and how agents need to demonstrate similar resolve.

64 | Purple Cow Dedicated to being different, this issue Editor Samantha McLean asks, “Should you lose the logo?”

64 4|

20 | What the Federal Election must deliver Peter Bushby from the REIA has some thoughts on how to assist first homeowners, irrespective of the political party that wins office in September.

22 | One Year On Georg Chmiel reflects on his first year as CEO of LJ Hooker, and outlines his goals for the next 12 months.

24 | Lead, Innovate, Transform Michael Sheargold gives his opinion on what principals need to achieve to be successful.

26 | A step in the right direction John Percudani from Realmark commends the Federal and State Governments for joining forces with the industry in WA.

Cover 27 | In short supply We ask the experts what to expect from the spring selling season and the property market post federal election.

44

contents 36

50

Features

Leased

32 | Strategic Intelligence Sadhana Smiles explores the reasons ‘mystery shopping’ is is an important step in setting your competitive strategy.

34 | Be phenomenal or be forgotten Glenn Twiddle discusses the principles of attracting more prospects to your business by being ‘phenomenal’.

36 | Mix Master Ian Grace continues his series on real estate advertising by looking at combining a mix of online and offline mediums.

38 | Agent Profile Peter Shiplee from LJ Hooker Mosman reveals what it takes to be successful in the hyper competitive lower North Shore of NSW. 40 | Dave Eller’s guide to awesome Fight MC and Auctioneer Dave Eller gives his top tips for getting and staying ahead of the competition.

42 | Avoiding professional burnout Terri Cooper looks at the steps you can take to heal when your body tells you that you’ve gone too far.

44 | Feng Shui for Real Estate Agents Esther Yong from AC Property examines the key elements of a property that will attract or deter Chinese investors.

46 | Having the tough conversations HR Expert Liz Johnston looks at how to tackle some of the more difficult HR discussions in the workplace; including salaries and performance.

48 | A uniform approach Experienced Marketer Jess Wheeler examines the benefits of introducing a custom uniform in for your office.

50 | Economy, Business, or First?

Bob Walters categorises the different types of property management businesses in the industry today. Is your business flying economy, business, or first?

54 | The plus factor Experienced rent roll broker Matt Ciallella reveals the new factors impacting the value of your rent roll.

56 | Split Personalities David Taylor from National Property Systems and Lisa Indge from Let’s Rent look at the characteristics of the ‘perfect property manager’.

60 | Top Property Manager Meet Cyndi Ward from RE/MAX Gladstone, QLD. 62 | Leasing at a premium Joel Fletcher from R&W Umina Beach looks at the benefits of Landlord Paid Advertising.

63 | BDM Corner Tara Milzewski discusses the Winning Mindset needed to be successful as a BDM in Property Management.

40 |5

EVENTS CALENDAR

What’s on...

Conferences QREAS 5 year anniversary “Be phenomenal or be forgotten” October 5-6 qreas.com.au RER Principal’s Retreat August 18, Seminyak, Bali The Real Event August 30 Brisbane Convention and Exhibition Centre therealevent.com.au LPMA 2013 Round Table October 11, Sydney LPMA 2014 Forum April 3-4, Gold Coast lpma.com.au Property Management Excellence Convention October 17-18, Brisbane realestateexcellence.com.au BDM Academy Quarterly Training October 15, Brisbane October 17, North Ryde bdmacademy.com.au RER Principal’s Retreat August 18, Seminyak, Bali rernetwork.com.au REINSW October 22, Sydney Women in Real Estate Conference reinsw.com.au Best Practice Principal’s Retreat September 19-20 Gold Coast Convention Centre bestpractice.com.au

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Home Buyer and Property Investor Expo August 23-24, Victoria homebuyershow.com.au/Melbourne National Association of Realtors (NAR) November 8-11, San Francisco realtor.org Global Real Estate Summit October 8-10, Dubai cityscapeglobal.com

Training BPG Training Victorian Experienced Agent Licensing Program August 19-23 September 16-20 Victorian Agent Representative August 28-30 www.myrealestatetraining.com.au Josh Phegan Real Estate Training August 6-7 Real Estate Blue Print, Sydney September 10-11 Real Estate BluePrint, Queenstown September 13 Prospecting School, Sydney www.joshphegan.com.au REINSW Special Events September 3 The nuts and bolts of the residential tenancies act, Sydney September 7 Creating impact and influence, Sydney September 10 The ABC of Compliance, Sydney September 16 An agents guide to tax and property investment, Sydney

September 17 WHS for Property Managers, Sydney September 27 The DEF of Compliance, Sydney REINSW Courses Certificate of Registration, Sydney August 5-8 August 12-15 August 19-22 August 26-29 September 2-5 September 7-28 September 9-12 September 16-19 September 23-26 reinsw.com.au REIWA Courses 7 CPD – Think before you Click!

August 5, Subiaco Mandatory CPD – Licensed Agents August 7, Subiaco Mandatory CPD – Sales Representatives August 8, Subiaco 7 CPD - PM Documentation – Getting it Right!

August 8, Subiaco Mandatory CPD – Sales Representatives August 9, Secret Harbour Mandatory CPD – Property Managers August 9, Armadale Mandatory CPD – Licensed Agents August 12, Armadale Mandatory CPD – Sales Representatives August 12, Mandurah CPD – Property Managers August 13, Subiaco Sales Rep Registration course commences August 19, Subiaco 7 CPD - PM Documentation – Getting it Right!

August 20, Subiaco Mandatory CPD – Property Managers August 21, Hillarys Mandatory CPD – Licensed Agents August 21, Hillarys

7 CPD – Manage Budgets and Financial Plans August 21, Subiaco 7 CPD - PM Documentation – Getting it Right!

August 27, East Fremantle Mandatory CPD – Licensed Agents August 28, Caversham Mandatory CPD – Property Managers August 28, Caversham 7 CPD – Introduction to Strata Management August 28, Subiaco 7 CPD – Communicate, Connect, Sell!

August 28, Subiaco REIQ Courses Women in Real Estate Luncheon September 13, Brisbane Commercial and Industrial Luncheon October 25, Brisbane Auctioneers’ Breakfast December 6, Brisbane Registration August 27-30, Cairns Resident Letting Agent’s Licence August 19-23, Gold Coast FastTrack for Experienced Sales People August 26-30, Brisbane reiq.com.au Real Estate Dynamics Critical Rent Roll Facts August 7, Parramatta Dealing with Landlords August 8, Virtual Bootcamp for Property Management August 19, Brisbane Critical Rent Roll Facts August 21, Penrith

Business Development Mastery August 22, Brisbane The 21 Most Stressful Situations in Property Management August 27, Toowoomba Critical Rent Roll Facts September 4, Newcastle Critical Rent Roll Facts September 5, Maitland The 21 Most Stressful Situations in Property management September 5, Mooloolabah Critical Rent Roll Facts September 6, Erina Time Management for Property Management September 11, Virtually Bootcamp for Property Management September 17, Cairns Bootcamp for Property Management September 29, Townsville Bootcamp for Property Management October 15, Mackay Bootcamp for Property Management October 17, Gladstone Depreciation in Property Management October 24, Virtual www.realestatedynamics.com.au Property Training Solutions (PTS) NSW Certificate of Registration August 12-14, Byron Bay August 20-22, Alexandria QLD Real Estate Registration September 2-5, Springwood ACT Salesperson Registration Enrol anytime via e-learning NSW Accelerated Licence September 9-18, Alexandria December 2-11, Alexandria QLD Accelerated Licence September 9-13, Springwood

NSW CPD 12 Points Residential Tenancies Act September 24, Alexandria www.pts.edu.au Think Real Estate – CPD Workshops NSW Certificate of Registration August 12, City September 9, City October 14, City Sales Workshop – “Bullet Proof Your Listing Interview” August 2, St George August 5, Nowra August 6, Bathurst August 9, North Shore August 13, Central Coast August 16, Eastern Suburbs August 20, Blue Mountains August 30, North Shore Property Management Issues 2013 August 1, St George August 5, Bathurst August 8, North Shore August 12, Central Coast August 15, Eastern Suburbs August 19, Blue Mountains August 29, North Shore www.thinkrealestate.net.au Young Professionals in Real Estate (YPIRE) Josh Phegan August 23 www.ypire.com The Untold Sales Secret – Peter Hutton – National Tour August 13, Perth September 6, Sydney September 20, Brisbane October 4, Melbourne thesalesalchemist.com

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REALTY BITES FLETCHERS REAL ESTATE WINS CUSTOMER SERVICE AWARD

LJ Hooker Mosman and Support Charity Auction

P

eter Shiplee from LJ Hooker Mosman and Samantha McLean from Sold1 and joined forces last month to Support the Give and Let Live charity auction to raise awareness of and support Bone Marrow Registry.

As Auctioneer for the evening Pete helped the Give and Let Live Team raise more than $17,000.

Event organiser Marianne Hynes said, “Bone Marrow testing and donation is not nearly as scary as it was once. It’s an easy blood test, and you could save a life. And, if you happen to be a match the process of donating is no longer painful. We are passionate about dispelling some of these old perceptions about the process.”

For more info on becoming a Bone Marrow Donor visit www.abdmr.org.au. To Support the Give and let live Community visit facebook.com.au/pages/give-and-let-live.

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Fletchers Real Estate, Canterbury, has won the 2013 Australian Achiever Award for Victoria’s Real Estate Services category.

Now in their 15th year, the Australian Achiever Awards are an independent, unbiased award system based on assessment ratings from companies’ own clients – and are therefore an indication of a well-run, healthy business worthy of patronage. The award focuses on seven criteria, namely: Time Related Service, Addressing Clients’ Needs, Care and Attention, Value, Attitude, Communication and Overall Perception. Any score over 80 per cent overall is regarded as exceptional and reflects outstanding customer service.

Fletchers were proud to be announced the winners with an unprecedented score of 99.58 per cent for Customer Service and Relations, topping all other Victoria Real Estate Services businesses. This award proves Fletchers Real Estate delivers on their promise of customer satisfaction.

Established as a family real estate business since 1919, Fletchers Real Estate now operates with a team of 200 in all offices, 60 of them working out of the Canterbury office. The business has grown into a large network of eleven offices in the Melbourne area and one on the Gold Coast, Queensland. At the top of its game, Fletchers has also been awarded Australia’s 2013 Real Estate Industry accolade of REIA Large Residential Agency of the Year.

Commercial

Principal of Harcourts Agency publishes book for aspiring Real Estate Professionals

M

ulti-award winning real estate agent and Principal of the Baulkham Hills Harcourts office, Andrew Drane, has written a book, which he describes as a “labour of love”.

Andrew wrote the lively and insightful Real Estate for Real Reasons for anyone entering the real estate profession. “This book is meant to be an opportunity for anyone contemplating a career in real estate to get an overview of the skills, knowledge and attributes required for outstanding success.”

But Real Estate for Real Reasons is not just for beginners.

Even hardened professionals who are considering managing an agency will benefit from reading this groundbreaking book, especially its chapters on managing and leadership.

Andrew believes a career in real estate, which has very few entry requirements, can be incredibly rewarding, and within reach of most people as long as they “develop and amplify skills and attributes they probably already have. I wrote Real Estate for Real Reasons to show them how to do precisely that. ” The book, which is full of handy advice, practical exercises, plenty of quotable quotes and timeless wisdom that applies to any business situation, begins with a clear message: anyone contemplating being a shonky real estate professional need not read any further. “This is not for the quick-fix merchants”, says Andrew. “It is for people who want a satisfying career in real estate that makes a difference for the better, for individual sellers and buyers, and for the community at large who will only benefit from skilled agents who offer them real value and choice.”

Business For Sale Real Estate Agency, Broken Hill, NSW 2880 Trading under the Ray White banner, this progressive real estate agency opened in 2005, manages over 600 rental properties and has a strong market share in sales. The agency employs a staff of 10, includes a modern shop front and full plant/equipment. Full financials & rent roll valuation available.

Clifford Wren 0439 782 112 57 Oxide Street, Broken Hill, NSW 2880 raywhitebrokenhill.com.au

Ray White Broken Hill |9

REALTY BITES

REA Group named Top Employer in Women in Media Awards

R

EA Group has won the prestigious Employer Award in the 2013 Women in Media Awards. Announced last night at a gala dinner in Sydney, the inaugural Women in Media Awards recognise women who have achieved professional success in the media industry and the organisation that best supports women through specific programs and initiatives.

REA Group was awarded the Employer Award for its high level of female representation in management and throughout the business, and its initiatives which include a commitment to flexible work arrangements, networking opportunities for female employees and building a pipeline of female talent. REA Group was recognised with an Equal Opportunity for Women in the Workplace Agency (EOWA) Employer of Choice for Women citation for the first time in 2012.

Simone Carroll, REA Group’s General Manager of Human Resources, commented: “We are thrilled to receive this award, which recognises REA Group as a leading employer for women in the media industry. We are passionate about creating an environment in which diversity is valued and our commitment to equality and flexibility is supported at all levels of our organisation.”

10 |

REALBASE STRENGTHENS IT’S PRESENCE IN AUSTRALIA Gai Mason has recently joined property management software company Realbase in Sydney. Her role will be to support and promote Palace, their cloud-base software for property management businesses. “Gai’s knowledge and experience will be a real benefit in expanding our rapidly growing client base”, explained Director Michael Abbott.

“While Palace offers a range of features to todays property managers, the strength of any trust accounting package rest on support and training. And that’s where Gai excels”.

While Palace is a relatively new entrant to Australia, they’ve been active in New Zealand since the mid 1990’s. Gai was keen to be a part of their team after seeing a presentation of their software. “It certainly provides a great new option to businesses looking for an advantage in a tightly contested marketplace”, says Gai. Her previous experience includes running her own training and trust accounting services.

She has also worked for McGrath as an account supervisor where her responsibilities included transacting settlements and exchanges for 100 sales agents. In addition, she was involved in the re-entry of McGrath to the property management market.

Gai has an association with the property management industry stretching back 24 years and has certainly seen some changes.

“It is great to have technology that works well and to know that there is great team backing it up. As a trainer it is critical to know you have this backup.”

Technology lowering the time and cost for new leads Helping to put you back in charge of your profits

N

Your RealSave Chart 1 5k

Current cost Discounted cost 1 2. 5k

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In Do lla r ($)

ew website service “Real Simple Property” designed to make it easy for vendors and agents to get together.

It enables vendors to lodge a property for sale or rent online and automatically notifies agents in the area so that they can bid for the business. Agent bids include fees, customer ratings and personal trait matching with a shortlist provided to the vendor for comparison.

Registered agents are given access to a sophisticated dashboard, which allows them to manage their bids and monitor their success rates. Vendors can also peruse the bids received on their own secure site and select up to three agents, who then contact them for the final selection process.

Gary Odewahn, Managing Director of Real Simple Property, believes the website will provide a more cost-effective marketing tool for agents than traditional advertising. “With a modest bid fee and a flat rate fee for the shortlisted agents, the lead generation cost is substantially less than advertising in the weekend papers,” Gary says.

Gary believes the site will be good for both vendors and agents, using technology to help shorten the selection process. “The site automatically notifies agents when leads become available.

Assuming they can turn around the bids quickly, the whole process from the vendor listing their interest, to the agent writing the business, could be just a matter of days – not months”.

For more information visit www.realsimpleproperty.com.au

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REALTY BITES

Two Sydney Wharf Penthouses Join Mega Apartment ‘Twinning’ Trend

T

he trend towards penthouse “twinning” has shifted from Bondi to the city with the listing of two adjoining penthouses at Sydney Wharf, one with 270 degree views of the harbour.

Listing agent Nick Countouris, principal of Richardson & Wrench Pyrmont/Glebe, says the penthouses, at 56 Pirrama Rd, are expected to fetch around $9.5 million and $3.8 million apiece but will be offered in one line through an expression of interest campaign, beginning today (July 13). Michael Pallier of Sotheby’s International has been appointed co-agent on the sale.

When combined the two penthouses offer six bedrooms, seven bathrooms, five car spaces and a rare 18 metre berth that comes with the front penthouse (No. 59).

“We’re seeing a healthy appetite for unique properties in the Sydney prestige market right now which was evident with the record $21 million sale at Bondi Beach last month,” said Mr Countouris.

“This offering takes one of the most magnificent apartments in Sydney with sensational harbour views and makes it even bigger and better. I think we will see records fall with this sale.

“The property is walking distance to the CBD and in a location set to take off with the development of Barangaroo across the water and the revamp of Darling Harbour. Government approval last week for James Packer’s Crown proposal will only increase the appeal of this side of the harbour.”

Situated at the very tip of the PTW-designed Sydney Wharf, completed in 2009, the front penthouse offers 397sqm of living space with kitchen, dining and living spanning the full breadth of the apartment, together with a covered outdoor entertaining balcony.

The three bedrooms are set away from the living zone but also enjoy water views. The master suite is immense with an opulent bathroom featuring travertine underfoot and on the walls and dark Emperador marble on benches, vanities and bath surrounds.

On the mezzanine level is a second living or office area with its own bathroom, balcony and vast storage areas and adjoining it an outdoor plunge pool/spa. Up another level is a private eyrie on the roof top with room to sunbake, party or just catch a sea breeze.

12 |

The entire home is bathed in light, encased in glass from the parquet timber floor to the top of the triple height ceilings. Remote controlled outside shutters allow easy climate control and the tip of wharf location provides an additional layer of privacy.

By day the penthouse is quintessential Sydney, brilliant blue harbour flanked by the towers of commerce across a short stretch of water. By night the sky and water are aglow, with the city lights creating a perpetual picture show of a big, bustling cosmopolitan city.

Said Mr Countouris: “There are very few properties that you could honestly say are a once in a lifetime opportunity, and this is one of them.

“Sydney had a brief period in which the old wharfs and structures on the harbour were converted to low-rise, high-end apartments. But the harbour’s edge is a finite resource. It’s not going to happen again and this penthouse is the very best of them.

“When you add the adjoining 203sqm penthouse to the mix, with the potential for a combined living area of more than 600sqm, it’s an unrepeatable opportunity.”

The Magazine for Real Estate Professionals

List More! Sell More! Be more efficient!

OPEN HOME

Spring is in the air As we work our way through the quiet winter months there is a sense of anticipation for spring. As the weather warms, the trees and flowers explode into life and a renewed sense of confidence and expectation returns to sellers with a resurgence of property on the market.

W

hile you eagerly await the go-ahead from your vendors in spring, the question to ask right now is ‘Are your properties marketready?’ Winter is best used by sellers to maximise the value of their property.

Good preparation right now can add value to a property, no matter where it is and what the price range; however, it does require time and planning. The better prepared a property, the better chance of achieving a higher price or faster sale.

Here are my top tips for your sellers to get ready for spring: 1. PLAN AHEAD If the seller is planning a spring campaign then they need to start working on a preparation plan at least four to six weeks out. So, for example, an early September campaign should be planning by mid-July.

Why? Firstly, to allow time for any major work such as painting, laying new carpets or landscaping; and secondly to avoid the stress of last-minute decisions.

BEFORE 14 |

The shorter the timeframe the more stressful it becomes and the more likely it will be that things won’t get done. This planning schedule should be used to list the tasks to be done and when they need to be completed. Nominating a person to be responsible for the task may also be necessary to ensure that ownership is taken.

2. DECIDE A BUDGET This is important to ensure that the money is spent wisely and on the tasks that will add the most value. Preparation is about

ensuring the value to the existing property; it is not about doing complete renovations or spending on things that have no intrinsic value. A budget should not be open-ended as this leads to waste. Statistics show that most people would be willing to spend up to $5,000 to get their property ready if they knew where to spend it. For bigger properties or more extensive preparation, a budget of one to three per cent of the value of the property is a rule of thumb.

Even if the budget is quite small, there are many tasks that can be undertaken with time, planning and elbow grease!

The better prepared a property, the better chance of achieving a higher price or faster sale.

AFTER

BEFORE

Statistics show that most people would be willing to spend up to $5,000 to get their property ready if they knew where to spend it.

3. GET ON WITH MAJOR TASKS If the plan calls for major tasks, like painting or carpet replacement, then start them as early as possible. These are disruptive tasks and the sooner they are done the better.

Even more important to start early if the seller plans to do the work themselves! Any maintenance should be started early as well.

Anything on the ‘gunna’ list should be done and not left to the last minute, or worse, for the buyer to deal with.

4. DON’T KNOW WHERE TO START? ASK A PROFESSIONAL! Most people don’t get going because they are overwhelmed and don’t know what to do or where to start. If that’s the case then get professional help. A home staging consultant can assist by providing recommendations and advice, as well as a list of priorities that will get the seller moving in the right direction.

5. START CULLING AND PACKING One of the best things that sellers can do is start to pare down, or de-clutter. Starting early gives time to cull, toss, give away, sell or pack any unnecessary items. It is an ideal time to commence the packing process; after all, they are planning to move and this is a chance to get a head start. Finding somewhere to store those packed items is also important; somewhere offsite is ideal.

6. BRING THE GARDEN TO LIFE FOR SPRING Most sellers sell in spring as it is the time when gardens come to life. A little helping hand in the meantime will ensure maximum

AFTER

growth and appeal. Simple things like fertilising the lawn, mulching garden beds, trimming plants, some weeding and planting will ensure a blooming garden by sale time.

7. START CLEANING EARLY Clean is a silent selling tool. It is easy to underestimate its effect on how a property is perceived. I am not talking about a general quick once-over but thorough and complete deep-down cleaning of everything. This takes time, commitment and some elbow grease but is certainly worth the effort. Kitchens and bathrooms, in particular, should be spotless: every surface clean and difficult marks like oil, soap scum or mould tackled. Simple cleaning tasks like removing cobwebs from the ceiling, insects from light fittings or dust off the skirting boards show the property is cared for. It will also make it easier to maintain during the sale campaign.

8. WINTER WASH-DOWN The winter months can be harsh with frosts, dampness and cold air leading to slippery paths and mossy growth around the property. A thorough wash-down of walls, paths, driveways and other hard surfaces can bring a property back to life.

9. NO TIME? HIRE HELP Best intentions are often overrun by lack of time and other commitments. As the weeks disappear and those ‘must do’ tasks are looking more and more daunting then hire additional help. There are handymen, cleaners, gardeners and other trades that

can get those tasks off the list quickly.

What may take a novice several days can be done in a fraction of the time by a professional. That’s money well spent and stress managed!

Clean is a silent selling tool. It is easy to underestimate its effect on how a property is perceived.

10. BE PHOTO-READY All the planning and hard work in the leadup to the sale will come to fruition when the photos are taken and the marketing begins. The preparation is vital to ensure the property is looking at its best, but don’t forget that presentation is crucial to the first impression the buyers will get. Adding furniture, art, colour and accessories to the property will provide all the elements for a successful spring sale.

Would you like a copy of this article as a PDF to give to your clients to prepare them for sale/lease? Email us editorial@sold1.com.au and we will only to happy to oblige.

Janne Petrie is a Certified Staging Professional (CSP) and a co-principal of the Staging Professionals based in Sydney, Australia.

For more information, visit www.thestagingprofessionals.com.au. | 15

TECH IN THE CITY

Person to person Remember when we were kids and we would pretend that we could talk on the phone and see someone at the end of the line? Today, accessible technologies such as Skype, Google Hangouts and FaceTime have made this a reality.

Lisa Tremolada shows how easy it is to have more meaningful conversations with your customers using Skype.

S

kype was first introduced back in August 2003, almost 10 years ago.

According to Wikipedia, Skype had 663 million registered users at the end of 2010. Microsoft purchased the company for a cool $8.5 billion in 2011. Yet with all these users, Skype is probably one of the most under-utilised programs for business on the Internet.

I believe that Skype is a really easy way for real estate agents to build rapport and deliver information in a more personal way with potential or existing clients when they are located overseas or just too far away to see in person. Face-toface conversations with Skype can also serve as a great point of difference.

Skype can open you up to more detailed conversations with potential sellers and potential buyers. And even better, as long as you both have Skype accounts, it’s free and so easy to use.

SETTING UP Most computers these days have a webcam, and reasonable sound quality microphone inputs. I would recommend buying a headset from your local JB Hifi or other retailer. Then pay a quick visit to www.skype.com and follow the easy prompts to either create or log into your account. If you are creating your account for the first time, you will have to create a user name and password. Your user name is how people will search for you; it’s your reference name for others to find you, so choose it wisely!

Most smart phones and tablets will now

16 |

also connect to Skype, so depending on what device you have and what operating system, you can also choose to download an app that suits your device so that you can Skype on the go.

If you want to use the video functionality, the person with whom you’d like to communicate needs to have Skype on their phone or computer, as well as an Internet connection. I recommend using the test function to make sure your account is working properly and that the sound and video quality are good.

Face-to-face conversations with Skype can also serve as a great point of difference.

I like the premium function as you can share your screen with your contacts.

(This used to be free; it is now part of their paid package, still very cheap and worth using.) With a premium account you can also place calls to non-Skype accounts, such as telephone numbers, which can save you money in telephone calls depending on the rate and where you are calling.

Benefits for agents in using Skype 1. Calling an overseas, out of state vendor to discuss their market appraisal or their marketing plans. Instead of just emailing

the report, use the ‘share screen’ option in the premium package, and display your market appraisal on the screen to your client, talking them through the report at the same time. You will be able to physically show them the comparable properties and talk them through the whole process.

2. Use Skype as a video walk-through to show clients the state of their investment property. Some owners remember the property better than it actually is and you can show them various aspects of the property real time. If the property is likely to be sold, you could also outline some potential improvements that need to be made by having an interactive call, rather than just sending photos.

3. Build better relationships. Give remote owners the feedback from buyers about the property they are selling, or even show buyers a potential property that will allow them to make an instant decision or entice them to inspect.

4. Manage your team. If you happen to take the premium option, you have the facility available to have group video calls – up to 25 people. This may come in handy to connect with your staff if you have more than one office, people are away or you are on holidays.

Lisa Tremolada helps agents to become superstars online, make more money and work less hours. For more information visit www.dominatetheinternet.com.au.

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RURAL ROUNDUP

Follow the

leader

In the most recent leadership spill Kevin Rudd managed to regain his title on his terms.

Jason Hellyer draws some parallels between the recent political leadership spill and how agents should demonstrate a similar resolve with vendors.

P

eople seek leadership.

Throughout history this has always been the case and I doubt it will ever change.

Just last week I sought some renovation leadership and advice from my father.

A man much wiser than me and very handy on the tools, I never questioned his thinking or actions; I simply followed his lead and instructions implicitly. The outcome was tremendous – job finished on time, on budget and looking a million dollars. Love you, Dad! And in recent weeks on the national stage, the reliance on strong leadership and how it can influence change has never been more evident than within the Australian Labor Party. The Party faithful – disillusioned, dysfunctional and dissatisfied with disastrous pre-election polling – sought leadership salvation, new direction

18 |

and energy, not through God, but through the reinstatement of the ‘Rudster’.

Recent polls post the leadership change would suggest the Labor Party is back on track. As they merrily rally behind their new leader, the Party protagonists are once again happy, all holding hands and singing ‘Kumbaya, my Lord’ all the way to the impending election. Happy days!

So what does this have to do with us?

In the context of the agent vendor relationship – everything.

Take a moment to answer this question.

Why do vendors seek you out?

In my view there’s only one answer to this question. In what is quite possibly the biggest transaction of their life, they’ve approached you for your help and advice. In other words, they’re looking for leadership!

Why then do we fall into the trap of engaging vendors ‘on their terms’ when they have come to us seeking our knowledge, professional advice and leadership?

Would the ‘Rudster’ cave in?

I think not. In fact, he had the entire Labor Party engage him as leader on his terms, and his terms only. He held firm and resolute. They accepted his conditions and now he’s leading them into the next election.

Let me frame an example of how this can play out in our world and what the ramifications could be.

A vendor seeks out our advice with respect to the sale of their property. At the listing presentation they’re impressed with our depth of knowledge and offer us the opportunity to market their property on a ‘general authority’ basis.

We’re now at the pivotal moment in the vendor/agent relationship.

If we say ‘thanks but no thanks’ and communicate the reasons why it’s not in the best interest of the vendor to engage those terms, we maintain our status as ‘leader’ in the relationship.

they’re seeking your leadership and they’ve given you permission to lead.

Make them follow.

HAVE COURAGE Leaders understand that change isn’t easy and that it takes courage to tread paths least trodden. Leaders are innovators; they’re willing to try new things and they’re willing to fail trying. Followers, on the other hand, are satisfied with the status quo. Very rarely are they willing to take risks – they’d rather take orders.

Have courage in your convictions. At least then you’ll be able to look your vendor in the eye and say ‘we tried’. They’ll appreciate your action rather than inaction.

Who will break the cycle in your patch?

Will it be you?

Will you take the lead at your next listing opportunity, or will you opt for the path of least resistance and follow your vendor’s lead?

IMPROVE OUR SKILLSET Thankfully there’s only a handful of listing objections (I like to refer to these as ‘vendor requests for more information’) thrown at us on a regular basis. Persistent training and unwavering execution of the dialogue and actions learned to overcome these objections is critical if we’re to improve our performance and maintain our position as leader in the vendor/ agent relationship.

Jason Hellyer grew up in Mt. Gambier, South Australia, and is well versed in Australian Real Estate in the regional and rural arena. As Zone Franchise Manager for Landmark Harcourts in Victoria, South Australia, and Western Australia, he is responsible for business development and recruitment for franchisees across the southern states of Australia. For more information, visit www.landmarkharcourts.com.au.

CHANGE OUR MINDSET If you want to be a leader it’s your choice.

If you want to influence change you need to change – it starts with you.

Have belief in your own ability and understand your status in the relationship.

The vendor has sought your advice,

Why then do we fall into the trap of engaging vendors ‘on their terms’ when they have come to us seeking our knowledge, professional advice and leadership?

Conversely, if we capitulate and say ‘yes’, not only have we positioned ourselves as ‘follower’ in the relationship but we’ve opened the door for competing agents (additional followers in the relationship) to get lucky on the back of our good work. In this scenario nobody wins. Critical decisions required to facilitate the successful sale of the vendor’s property become complex, convoluted and demotivating (particularly when other agents snip our commission).

So what adjustments and actions can we implement to help arrest this behaviour and maintain our status as ‘leader’ in the vendor/ agent relationship?

Unlock your career. visit myrealestatetraining.com.au or call us on 1300 155 144 today honest training, coaching & accreditation advice the help you need, when you need it Tony Rowe

| 19

OPINION

WHAT THE FEDERAL ELECTION MUST DELIVER Irrespective of which party is elected later this year, the government must assist young Australians struggling to enter the property market says REIA president Peter Bushby.

20 |

H

ome ownership is declining after three decades of stable levels and first homebuyers are finding it increasingly difficult to enter the housing market.

Over the five years to 2011, home ownership declined by 1.1 percentage points to 67.0% of occupied private dwellings. The drop was evident across all states and territories and was most pronounced in the 35 to 54 age group.

In the decade to 2011, home ownership dropped by 4.5 percentage points for the 35 to 44 age group and by 5.5 percentage points for the 45 to 54 age group.

Despite cuts in the official interest rate during 2012, the proportion of first homebuyers in housing finance commitments has declined markedly.

In May 2013, the proportion of first homebuyers in the number of owneroccupied housing finance commitments was 14.6% – less than three-quarters of the long-run average.

Affordability is identified as the main reason for these changes. Although the March quarter of 2013 recorded the seventh consecutive increase in housing affordability, due in large part because of declining interest rates, the improvements have been modest and the trend has been of dramatically declining affordability since REIA introduced a measure of housing affordability in 2000.

One of the most important housing policy instruments in assisting first homebuyers with housing affordability is the First Home Owner Grant (FHOG), which was introduced in July 2000.

Ever since the impact of the 2008 Boost to first homebuyers ceased, the proportion of first homebuyers has been in decline. All state and territory governments except Western Australia and Northern Territory have recently decided to skew assistance away from buyers of existing housing.

These actions appear to be contrary to the Intergovernmental Agreement on

Federal Financial Relations, which states that assistance to first home buyers will be “uniform” and that “an eligible home will be new or established”.

I want to see the Commonwealth urge states and territories to either recommit to the Intergovernmental Agreement (IGA) on Federal Financial Relations Schedule A, which states that assistance to first home buyers will be “uniform” and that “an eligible home will be new or established”, or to sign a new IGA.

of raising a deposit for a first home. The scheme would be an adjunct to the First Home Saver Account and would allow flexibility for the saver to decide whether all or part of their superannuation payments is needed to augment the home purchase.

The approach Singapore has adopted to tackle house ownership since the 1960s has been very successful, with the level of home ownership in Singapore at 87.2%.

This compares to a level of around 70% in Australia for many decades.

I also want to see the Commonwealth Government establish a scheme to encourage young Australians to contribute to voluntary superannuation, by allowing access to these resources for the purposes of raising a deposit for a first home.

The socio-economic demographic of most first home buyers shows a clear preference to living close to existing facilities and work as opposed to buying in new housing estates. Lifestyle, environmental impact and proximity to public transport all play a part and that’s why 82% of first homebuyers choose established dwellings.

I also want to see the Commonwealth Government establish a scheme to encourage young Australians to contribute to voluntary superannuation, by allowing access to these resources for the purposes

The Central Provident Fund (CPF) is a social security savings plan in Singapore where a portion of an employee’s salary is set aside for retirement, healthcare and housing. The CPF consists of an ordinary account, special account and medisave account.

CPF is integrated with home ownership with ordinary account (OA) savings being allowed to be used to purchase a home under CPF housing schemes. OA CPF savings up to the Valuation Limit (VL) can be used to buy the property.

OA savings are available only after at

least 5% of the purchase price has been paid in cash and savings may be used to pay stamp duty, survey, legal and other fees associated with the purchase.

Whilst there are elements of the Singapore scheme that would not be applicable to Australia and first homebuyers, there are important core elements that could be adopted here.

Canada’s plan also has merit. The Canadian Home Buyers’ Plan allows first homebuyers to withdraw up to $25,000 from their retirement savings plan to purchase or build a home. Funds withdrawn from retirement savings plans need to be repaid over a 15-year period so that withdrawing the funds will not have a major impact on the ability to secure a comfortable retirement.

The scheme has been in operation since 1992 with around one–eighth of first homebuyers aged 25 to 44 participating.

Our parents owned their own homes and my generation was able to enter the housing market at an early age. I want to see young Australians have the same opportunities as we did. Right now though, it’s clearly becoming too tough for first homebuyers to enter the market and that’s a crying shame.

Peter Bushby is the President of the Real Estate Institute of Australia.

| 21

OPINION

ONE YEAR ON Leading a much-loved, heritage company as both managing director and CEO of 7,000 people is a challenge, but there is “no other professional role that could ever be as rewarding”.

So says LJ Hooker boss Georg Chmiel, having just celebrated his first year in the job.

L

eading a much-loved, heritage company as both managing director and CEO of 7,000 people is a challenge, but there is “no other professional role that could ever be as rewarding”. So says LJ Hooker boss Georg Chmiel, having just celebrated his first year in the job.

My former role as the CFO at REA Group, and all the other roles before that, provided the very solid foundation I now have to move forward and cement LJ Hooker as Australia’s leading real estate network.

While I am sometimes a bean counter (although hopefully a fun one) I am also a people person. Some people say I have a quirky sense of humour and perhaps I do.

22 |

But making business enjoyable and building relationships is just as crucial as crunching numbers in a spreadsheet.

I have a family I love dearly and a professional life with LJ Hooker that always challenges, stimulates and engrosses me.

So yes, you can say I have it all. I am a very lucky man.

LJ Hooker are at the forefront of the real estate industry and continue to grow and learn. We’re always challenging ourselves as a company and, as a consequence, we challenge the whole of the real estate industry. The group, the people and the industry innovations LJ Hooker embraces enable us to be real estate industry leaders and pioneers.

Left to Right: Georg Chmiel, CEO LJ Hooker, Nicholas Cusick, Franchisee of the year, L Janusz Hooker, Deputy Chairman.

I also know thinking outside the box and making calculated decisions can pay

Making business enjoyable and building relationships is just as crucial as crunching numbers in a spreadsheet. off big time. You are seen as different and interesting which can position you in a unique way. Take, for example, the LJ Hooker kids’ app. Many people wondered what we were doing tackling something like this – after all, children don’t buy real estate – so there was an initial perception of ‘what’s the point?’

However, we are aligning ourselves with the next generation of homebuyers and, as a family company, we are happy to create fun ways of being innovative with children as well. It’s not just an app to keep children busy while their parents buy real estate; it’s also an educational tool, which helps with hand-eye coordination and spelling.

On a more serious note, my educational background includes postgraduate qualifications in IT, accounting and business.

These three areas in my dual LJ Hooker roles have helped me juggle the ongoing demands I have as a CEO, leading a network of around 700 offices and 7,000 real estate professionals as well as our

international franchise offerings.

I am hard-working, motivated and have always performed best under pressure and when doing what I love. My two great loves – family and work – mean the challenges are huge, but the rewards are too.

I recently celebrated my 20-year anniversary with my wife, Monika. That was a real reminder to me to appreciate everything we have built together. No matter how many goals you kick at work, going home to a family is what makes everything worthwhile. This is as applicable to me as it is to everyone else in the real estate industry and professional business life in general.

When I look back at the past year, the achievements that I am most proud of have been:

I also have three main goals for the next 12 months.

• upporting and ena ling growth in our network across Australasia, with a strong focus on sales efficiency and the recruitment of sales people and home loan specialists.

• ontinual innovation which will ena le our agents and home loan specialists to be even further ahead of the competition.

• trengthening our L Hooker rand even further through a series of major advertising initiatives across TV, mobile, online and also in print.

I know all the hard work in my professional life has helped me be where I am today. I also know that the unwavering support, industry expertise and commitment my corporate and network team have for real estate and the LJ Hooker brand make

No matter how many goals you kick at work, going home to a family is what makes everything worthwhile.

• uilding a strong Franchise upport Team – the team working with me is second to none.

• ngaging and growing our strong real estate and home loans network – despite it being a tough market in parts.

However, we are managing to enjoy market share growth.

• e reshing and re ning the L Hooker brand, systems and processes.

everything possible.

They work hard, and I expect great results ome people nd this a challenge I recognise how hard I push my team to be the best but that’s because I’m passionate about real estate. I want to be the best and work with the best, which I do.

Georg Chmiel is the CEO of LJ Hooker | 23

OPINION

24 |

LEAD, INNOVATE, TRANSFORM You can’t transform your business without transforming your people, says Michael Sheargold.

T

he key to growing and building your business is to focus on the right leadership and innovation.

But if you look across the entire real estate industry today, there is a distinct lack of these two elements in most agencies, with principals increasingly looking to build or transform a business solo or by adopting a scattered, unfocused approach.

“None of us is as smart as all of us” – it’s a mantra I am very fond of and an extremely simple concept. However, many principals don’t understand how to apply it to business growth.

If you feel like you aren’t growing, or making headways within the industry don’t be afraid to ask for help. Often it’s having an outsider’s point of view that can help transform thinking within your agency and lead to business growth.

Principals can find business lonely.

There is a real “who can I talk to” syndrome where team, clients and friends think everything is going great, when in many cases, there’s a massive need for an external sounding board to give perspective.

This help can come from a number of sources available to you whether it’s an industry body, franchise group, mentoring or coaching or joining a network.

As a principal, being able to draw on the knowledge of like-minded operators is

“None of us is as smart as all of us” an invaluable asset to an agency. Meeting other principals in the industry and bouncing ideas off each other often leads to the evolution of ideas to transform the industry on the whole.

Another reason growth may be faltering, is that principals are struggling to step away from the sales role they’ve become accustomed to and focus on business growth and long-term goals that will propel an agency into the next phase.

It’s a scary situation for most as it requires building an entirely new set of skills, but there are a number of processes principals can employ to remove that fear factor.

Often it’s the obvious things that get left by the wayside, such as creating a

people, through developing decisionmaking skills and empowering agents to take control. The flow-on effect is a fitter, healthier and more dominant business ready for the market conditions it will experience.

The best real estate businesses on the planet have a strong culture of learning and growth. This goes beyond just training, it’s a way of looking at everything we do and asking, is there a better way?

It is crucial for principals to step away

It is crucial for principals to step away from the latest “fad” business ideas - these never gain any traction. solid business plan and setting achievable goals – but getting these things right is absolutely key to business success.

I’m sure you’ve heard “begin with the end in mind” – the best advice I can give is to step outside of your business and ask yourself where you want to be in three years from now. The more specific you are, the more effective the planning process will be.

Once you have clarity on the three-year view, you can drill that down further into the next 12 months and set goals for yourself and the business.

A business plan helps to create a solid foundation and will give the agency and its team a goal to work towards with clearly set milestones that will help to transform an agency.

This is the most common goal I hear from principals, that they want to ‘transform’ their businesses. But ultimately, it’s not really the business that transforms, but the people who form that business.

I’m a genuine believer in investing in

from the latest “fad” business ideas these never gain any traction. Instead they should focus their attentions on building a strong foundation with personality and integrity.

Building a positive brand profile and workplace culture will keep business flowing through the doors of an agency while attracting a high calibre of talent to sales positions.

These are just some of the things I will be telling principals who are part of the Real Estate Results Network at this year’s Principal Advance conference in Bali.

If we can break down these barriers to growth with training and networking and a clear focus – it’s not just the individuals that benefit – it’s the whole industry.

Michael Sheargold is the founder and CEO of the Real Estate Results Network.

For more information, visit www.rernetwork.com.au. | 25

OPINION

A STEP IN THE RIGHT DIRECTION The announcement last week by the WA State Government that it’s investing in 1,000 new and affordable rental homes is definitely a step in the right direction for a housing sector that’s under pressure on several fronts.

T

he varying housing issues and trends in Perth are well-documented: high property prices, fluctuating rental demand and vacancy rates, plus local residential construction rates struggling to keep up with the demands of a growing population, particularly the need for more affordable housing.

And the commentary – I’m raising my hand here – has been consistent in calling for more land to be made available for residential property development, and highlighting the need for new ideas to address a long-term challenge that shows no sign of easing.

So it’s refreshing to see that governments – at both at State and

National level – have agreed to join forces with the real estate industry in an initiative that is helping to address the issue of Perth’s housing shortfall, particularly at the more affordable end of the spectrum.

The National Affordable Rentals Scheme has seen the property sector proactively collaborate with both the State and Federal Governments to develop affordable rental options. Known as NARS, this initiative is helping people who may otherwise struggle with the rising cost of living expenses by delivering subsidies to their weekly rent.

It’s an excellent scheme and one that has been welcomed by thousands of people who are now living in quality

homes at below-market costs. They’re able to enjoy living conditions and security that may not have been afforded to them without such cooperation.

I’m very proud that Realmark has been involved in NARS through our new complex in Cockburn Central. These brand new one- and two-bedroom apartments come with all the modern touches, yet they’re available for significantly less than regular homes.

NARS isn’t just making a difference; it demonstrates what can be achieved when government works side-by-side with industry to find a solution.

NARS isn’t just making a difference; it demonstrates what can be achieved when government works side-by-side with industry to find a solution. This collaboration is increasingly important at a time of market imbalance and it shows that people’s concerns are being heard.

The 1,000 new NARS properties will be a welcome addition to a market that’s under pressure. However, to ensure this doesn’t end up being written off as a PR stunt, it needs to be followed up by government with further proactive legislation and policy to free up land for residential development and stimulate the Perth market.

John Percudani founded Realmark with his wife Anita in 1989. Since its inception, the business has transformed from a two person consultancy into an innovative real estate heavy weight employing over one hundred and forty people.

26 |

In

short supply With time on market statistics decreasing and stock levels in some areas continuing to be an issue, what will the political parties need to do to win your vote at the September 7 federal election? We asked six high profile industry experts to comment on the issues currently affecting the industry, including interest rates, supply and demand, consumer sentiment, and home affordability.

| 27

COVER STORY

Time on Market ■ = 2013 Statistics (days) ■ = 2012 DARWIN

50 60

60

National Average Days on Market 2012

43

BRISBANE

54 69

National Average Days on Market 2013

PERTH

40 61

ADELAIDE

SYDNEY

58 61 37 55

CANBERRA

55 69

MELBOURNE

37 58

HOBART

83 70 Statistics courtesy of RP Data current as at 1 August, 2013

T

here is no doubt that over the past five years, the real estate industry has endured some volatility and uncertainty. While there are many positive signs that point to recovery – new mortgages are higher, dwelling approvals are up, consumer confidence is up – the overall domestic industry revenue overall has once again recorded negative growth1.

However, there is a prediction from IBIS world that despite this, the industry will continue to stabilise and grow in line with improvements in domestic economic and financial conditions as well as continued growth in residential property prices, government supporting the need for 1. See Table 1, statistics courtesy of IBIS World, May 2013

28 |

growing urbanisation, and continued population growth.

All very well and good. However, there are continuing anecdotes from agents in the capital cities (particularly Sydney) of large numbers of groups through opens, and the problem of not having the stock to satisfy the current demand. RP Data’s “time on market” data supports this, showing average time on market nationally and in most states with the exception of Tasmania has decreased in the past 12 months.

“Listing numbers have been tapering off since the beginning of the year,” says Tim Lawless, Head Researcher at RP Data, “In fact, listings are now lower than last year

National Industry Revenue

Annual Growth (2008-2013)

Annual Growth (2013-2018)

March 2012

$9.0bn

-1.1%

1.6%

May 2013

$8.9bn

-1.6%

2.1%

Table 1: Figures courtesy of IBIS World Real Estate Services in Australia Industry Report.

across every capital city apart from Hobart.

I wouldn’t be surprised if we continue to see stock levels reducing. Homes are selling faster, and the number of newly advertised properties is being outpaced by the rate of sale, which implies stock levels are likely to reduce further.”

“Interestingly, even though stock levels are reducing, we are still recording more

again heating up, and sellers are gaining some of their lost leverage.”

So given the improved conditions, will we see this reflected in the traditional ‘Spring selling season’? How will the announcement of the September 7 election impact this? Doug Driscoll, CEO of Starr Partners says, “Personally, I anticipate that spring will only deliver a modest uplift in

“Undoubtedly we are seeing a transition away from a buyer’s market towards a seller’s market.” Tim Lawless homes for sale now than we were back in 2009 when market conditions were more buoyant than they were now. Undoubtedly we are seeing a transition away from a buyer’s market towards a seller’s market.”

There is a similar trend with vendor discounting. “On average across the capital cities, vendors are now discounting their initial asking prices by 5.8% compared with 7.2% at the same time a year ago. Again, these improved vendor metrics demonstrate the shift in market conditions with buyers losing some of the leverage that they accumulated during the weaker market conditions.”

Will we see even more consumer optimism in the market? “Well consumers are definitely showing a more positive mind set compared with a year or so ago,” says Lawless. “Measures of consumer sentiment are showing consumers are more optimistic than pessimistic, however not to the same extent as they were back in 2009 and early 2010. Clearly there is a much better match between buyer and seller expectations with the rate of sale consistently improving since May last year, homes are selling faster, and vendors are now discounting their initial asking prices by less. Auction clearance rates in the major auction markets of Melbourne and Sydney are moving back to levels not seen since 2009 which is a very positive indication that competition is once

new business. The traditional ‘housing calendar’ is now something of the past as there are so many new external influences that affect market conditions. With a distinct shortage of listings at the moment, I do hope I’m wrong”.

Jim Aitken, owner of eight offices out in Sydney’s Greater West/Blue Mountains region says, “I think spring seasons have gone out, that was about 20 years ago your house looked better in Spring, the reality is that a house will sell anytime if the price is right and the location is where someone wants to be.”

“The majority of people tend to use any excuse as a reason to not make a decision – it’s always easier to take no action than make a change,” says Sky Business Commentator and Buyers Agent Chris Gray. “An election or a change in government is a perfect excuse for inaction, and so unfortunately I do think that many buyers and sellers will sit on their hands until there is a result. Having said that, I believe Spring is seen as a good time to sell a property; so I think we will see more sellers putting their properties on the market compared to now, but I don’t think it will be a massive increase.”

Angus Raine, CEO of Raine & Horne, believes we may see an upturn later in Summer this year. “Listings were already at very low levels, with vendors taking

a ‘wait and see’ approach following the Federal Government’s announcement of a September 14 election date back in January. Since the change of ALP leadership, listings have almost slowed to a trickle in some markets. Now with the election set for September 7, we are probably set for a very late Spring selling season. This often happens when major events fall at the start of the selling season. In 2000, for example, the Sydney Olympics pushed the selling season out to Christmas – it usually starts to wind up in the first weeks of summer.”

What does an incoming or incumbent government need to deliver for the property market? “My only hope is that when we go to the polls, we end up with a clear cut result,” says Raine. “Consumer confidence might take a hit should we have another hung parliament, which is never a good result for the property market. That said, I am always concerned when politicians start talking about taxing investment income and capital gains. To be fair, these deliberations took place when the previous ALP leadership was in place, so we wait with bated breath to see if the new treasurer has the appetite for measures of this nature. It will be a disaster for the property market if he does.”

“The traditional ‘housing calendar’ is now something of the past.” Doug Driscoll “With unemployment slowly on the rise and inflation under control, the Reserve Bank has moved rates downwards to give the economy a much needed boost,” says Nigel O’Neill, CEO of hockingstuart. “Over the next 12 months, the Reserve Bank board will be closely monitoring the floating exchange rate to assess whether it moves far enough to stimulate the economy through providing welcome relief to exporters etc. If the Aussie dollar does not | 29

COVER STORY move downwards against the greenback, the Reserve Bank will have no choice than to decrease the cash rate to all time lows, which will no doubt have a strong impact on buyer demand.”

“I anticipate that we will see at least one further rate reduction between now and the end of this calendar year. In such volatile economic times, trying to predict anything beyond that is extremely difficult,” says Driscoll. “As an industry, we have a habit of being parochial when it comes to interest

“My only hope is that when we go to the polls, we end up with a clear cut result.”

Angus Raine rates, and sometimes forget to consider the macro-economics. Although the state of the property market is often a good barometer for the general economy, it does not directly feature in the RBA’s three-point fiscal charter. By comparison to the rest of the developed world, Australia’s interest rates remain relatively high, allowing the Government a degree of financial flexibility should the proverbial really hit the fan.”

Still talking Federal Politics, what would either party need to do to win your vote for the good of the Industry as a whole?

“Freeing up land supply is largely the domain of state and local government’s; as is reducing some of the red tape and excessive infrastructure charges that make developing new housing more expensive,” says Lawless. “However, at the Federal level we should be seeing more policies aimed at improving housing affordability.

Where the Federal Government can

Tim Lawless Head of Research at RP Data 30 |

arguably provide some much needed support is further infrastructure spending.

Large transport infrastructure projects such as arterial road upgrades and development, railways, bridges and tunnels would benefit from the financial support of the Federal Government.”

“Both parties need to recognise we have a shortage of housing stock in Australia and pursue a bipartisan approach to fixing the mess,” says Raine. “At the same time, I concede that all levels of government have created the bureaucratic blockages that have contributed to the shortage.”

“We certainly have plenty of land, but the lack of funding for new projects, as well as the red tape and the lead time required to push significant developments through, is a major stumbling block which is holding up progress in this area.”

“Additional housing will also go a long way to addressing issues of property affordability as the two are intrinsically linked.”

Driscoll says, “Although a sensitive subject, I think that the Government needs to address the laws on foreign investment. It is reported that up to half of the brand new developments in both the residential and commercial property sectors are being acquired by overseas

overseas. The primary responsibility of any Government is to look after the interests of its people, so ensuring Australians can live in Australian homes has to be a priority. “ “In terms of what impacts the property market, there is no doubt that as average property prices increase across the nation, the level of stamp duty payable on the transfer of real estate is making it extremely difficult for first home buyers and/or upgraders to save enough for both a deposit and to pay the state based stamp duty which in Victoria on average effectively adds another 5 to 5.5% to the already 20% deposit required if buyers wish to avoid paying any Mortgage Insurance. With the average house price in Melbourne close to $550k, this means that a first homebuyer would have to save around $140k before they could buy their first home in an average suburb,” says O’Neill. “It doesn’t make any sense that you can buy shares or invest in any non-property asset and pay little or no stamp duty creating an imbalance that in effect, restricts public mobility and limits home ownership availability. Perhaps the reason this has never been addressed is that stamp duty on the transfer of real estate is a large contributor of revenue to the states and is one of the few remaining large state tax levers as per the Commonwealth

“It doesn’t make any sense that you can buy shares or invest in any non-property asset and pay little or no stamp duty.” Nigel O’Neill. investors. It is a very difficult balancing act as Australia is becoming increasingly dependent on foreign investment and should continue to encourage it. However, everyday Australians are being priced out of the property market by investors from

Nigel O’Neill CEO of hockingstuart

Constitution. It would therefore require a strong willed but fair Federal Government to negotiate with the states to say increase and broaden GST with additional tax raised flowing back to the states based on state contributions.”

Doug Driscoll CEO of Starr Partners

“It doesn’t make any sense that you can buy shares or invest in any non-property asset and pay little or no stamp duty.”

Nigel O’Neill.

Aitken’s concern is more for the economy as a whole, rather than just property and small business. “We need to think about our increasing population.

How we are going to give people jobs?

We need to look after the majority and make Australia strong for the future.

Let’s get the country solid, let’s live within our means. We need to be more mindful of the economic conditions, and I feel right now there is a need to be more conservative.”

“The government is not doing enough in the form of ‘greenfields’ sites. They make land packages too expensive by worrying about expensive facilities surrounding them, and fail to get the basics right. They perhaps need to focus on cheaper land and most importantly water supply when they complete their planning around these sites. And then, they need to bring these sites online

“Let’s get the country solid, let’s live within our means.” Jim Aitken more cost effectively to give the first homeowners a go.”

“We all know that there’s more than one property market in Australia and depending on the location and price level,

Angus Raine CEO of Raine & Horne

some areas are getting 100% clearance rates and some at 50%, giving us an average of around 70-80%,” says Gray.

“Stock levels are down almost across the board around the country and so buyers still have to fight to buy many properties.

As you move further away from the inner cities and at the higher price points, the competition may well be not as high.”

“It’s a tough debate as to where we should have a higher population increase and whether the government should reduce the costs of building new homes and allowing further land releases. The developers will argue that taxes and infrastructure costs are too high and should be lowered to increase supply and those that can’t afford to get into the market will argue that if we stimulate the property market too much it pushes

“The selling time and discounting trend is continuing along the same track and we would expect over the coming months that average selling time and discounting levels will continue to move in favour of the buyer,” says Lawless, “The conditions are reflective of more buyers active in a marketplace where there are fewer listings.

The greater level of competition suggests we will continue to see a shift away from the buyers market conditions that were predominant over 2010 and 2011 towards a market more in favour of sellers.”

“Agents should continue to concentrate on the factors that they can control,” says Gray, “Whilst we do need industry leaders and bodies to lobby government over what they think is right, blaming the government won’t increase business. If you’ve been dealt the same set of cards,

“If you’ve been dealt the same set of cards, the better performing agents are the ones that concentrate on making the most out of the current situation.” Chris Gray prices up even higher. I don’t think there is a right answer that will appease everyone.”

Given all of the above, what do you think we will really see in the next 12 months, and what strategies can agents employ to be successful in these conditions?

“Some agencies have been doing it very tough,” says Aitken, “How do you attract the most buyers, if you only have one office? We are lucky because we have diversified somewhat through the number of offices that we have that are spread throughout the area. But not everyone can do that.”

Chris Gray CEO of Empire Property Portfolios, and Sky Business Commentator

the better performing agents are the ones that concentrate on making the most out of the current situation. Even in a stagnant market you can still do more business by outperforming and differentiating yourself from the competition.”

Lawless agrees, “For many agents and agencies the new challenge is not selling homes but winning the listing in the first place. Agents with a slick listing presentation, a well-maintained buyer and seller database and up to date market knowledge (and of course exceptional selling skills) are likely to be winning market share in these current market conditions.”

Jim Aitken OAM FAIM is the Managing Director of Jim Aitken and Partners | 31

LEADERSHIP

Strategic Intelligence

Setting yourself apart from the competition can be difficult unless you truly know what you are up against. In an excerpt from her book People Power: Did You Have Them @ Hello?

CEO of Harcourts Victoria, Sadhana Smiles, has some advice on how to gain the ‘Intel’ you need to get ahead in the game.

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ne of the most common things we do in business is copy each other.

Yes, we may change a few pictures or words; however, on the whole, most of us produce and provide the same things as others in our industry or line of business. I know most of you will relate to the goldfish image where one of the fish is blue and the others are orange – they are all still goldfish!

It has been used by so many different companies in so many different ways that it has become quite meaningless.

STRATEGIC INTELLIGENCE – SETTING YOURSELF APART A few years ago, while I was working at McGrath Real Estate in Sydney, as part of the company Launchpad program we invited an army officer who had served in Afghanistan to speak to us. He shared with us the planning he did prior to going into 32 |

battle and how that related to what we did in business. It was a different perspective, I know; however, surprisingly it was very relevant to our business.

One of the key messages was that, firstly, in the army they never made a move without full research and understanding of the target area. Secondly, they had full intelligence on the target itself and thirdly, they practised what they intended to do in the field so that it became second nature to them when they were faced with battle.

Let’s take this concept back into real estate – one of the ways we can get intelligence on what our competitors are doing is by conducting a ‘mystery shop’.

If you want to stand apart and ensure that your brand provides an experience that is unique, memorable and different to everyone else in your marketplace you first have to understand what you

are up against. Intel is what you need and conducting a regular mystery-shop program is the best way to get this data.

In a previous business I worked in, we set up a couple in a house and called the key agents we were competing with to conduct an appraisal of the property and give a listing presentation.

We had briefed our couple on exactly what to ask, what objections to raise, and how to test how far the agents were prepared to lower their fees. They were also briefed on finding out what marketing was offered, what they said about us as their competitors and, most importantly, what their follow-up was like.

Cheeky? – Very much so. Unethical?

– Definitely not. Did it provide us insight into how to beat our competitors and win listings?

Absolutely yes.

Was it strategic intelligence that helped us define our business? – Unequivocally!

Try something similar in your business and see how much intel you can uncover and how it can be applied to develop your business strategy.

HOW MYSTERY-SHOPPING WORKS Should you choose to use this method of intelligence gathering, you first need to be very clear on what the key touch points are that provide opportunities for memorable experiences. These are those ‘onepercenters’ that set your business apart.

It may be that you need intel on only some parts – not all areas – of business where you have contact with clients. If this is the case, just select some key areas that you know will help your people to deliver outstanding service and that your customers will appreciate.

There are a number of companies out there that can run these programs for you.

Some suggestions of areas that real estate agents may consider to mystery-shop are: • eception answering phones passing on messages, being proactive in resolving issues • pen homes how it was conducted • resentation o the home • elling skills at the open or inspection • Follow up calls • Listing presentation • e site • gent presentation There will be a similar list you can compile relevant to your business. No matter what your business is, customer service is customer service and it will be beneficial to find out what your competitors are doing well and what you might be able to improve on. It is important to ascertain the following: • Find out what your competitors s ervice levels are like at each client interaction point.

• hat do they do that is the same as you?

• hat do they do etter than you • hat are they not doing at all • hat was the overall e perience how did it make you (the mystery-shopping customer) feel?

• hat do they say a out you as their competitor? nce you have this data suggest you sit down with your team and ensure that they fully understand the key areas you have mystery-shopped and why you focused on these areas.

Next, review the results and ensure that everyone has clarity and understanding on what the data is telling you.

Then, develop a set of non-negotiable service standards that you and your team are prepared to provide every time, without fail or exception, that sets you aside from your competitors. emem er you are a people usiness – internally and externally. You have a number of competitors in every marketplace. To the consumer you all look the same.

To take this further in your business, every six months mystery-shop your own people. Make sure they are delivering the service levels you expect of them. gain in a previous employment this is exactly what we did. We drilled down from the overall franchise group, to the office and lastly the agent, to find out how they were delivering service.

It became a tool that could be used to keep existing employees on track. It was also part of the induction process to make new employees aware of our service expectations and it provided valuable feedback at one-on-ones on what they perhaps needed to work on to get a different result.

Here’s the thing – is what I am suggesting too hard? No, it’s not. What you need to

opinion of the consumer.

The cost of getting it wrong is lost business and damage to your reputation. emem er consumers will pay or etter service. When they see value in what you

In the army they never made a move without full research and understanding of the target area. decide to do, as a business owner, leader or manager in business, is to make the investment in your business and people so your consumer benefits and the return on investment is increased business.

GET IT WRONG AND… henever ichard ranson travels on his planes he talks to his passengers about their service experience. Did it meet their expectations? How can it be improved?

When was the last time you were a client of your business? When did you last ask your key stakeholders – your clients – how they felt about doing business with your people? ut here is the catch there isn t any point in asking if you and your people are not clear on what it is you are supposed to deliver or how you want clients to feel.

Look at all the top rands in any country or community; they have all put significant effort in getting the brand experience right for their business, then getting the right people to deliver it.

The alternative is haphazard delivery of service and hit-and-miss client experiences.

Then long term you will blend into the ‘same as everyone else’ category in the

provide then the focus goes away from the cost and towards the benefit of working with you.

If you do not have the right people on your team delivering the promised experiences, then you have two options: train them or move them on. emem er the team is only as strong as its weakest member.

KEY POINTS • Find out what your competitors are doing better, the same or different to you.

• ork out what your key points o differences are.

• ake sure your people all understand these.

• rovide a rand e perience that is uni ue in your marketplace.

• un a mystery shop program • e a customer o your usiness on a regular basis.

Sadhana Smiles is the CEO of Harcourts Victoria.

| 33

SALES

Be

phenomenal or be forgotten

Clichés easily come out of speakers’ mouths, including mine. Living by those clichés is hard.

We’ve all heard sayings like ‘Good is the Enemy of Great’ or my favourite, quoting one of my mentors, Eric Thomas: ‘Be phenomenal or be forgotten’. Although we may have all heard these motivational quotes before, how do we instil these attitudes so they become habits in our day to day lives? Story by Glenn Twiddle.

S

tudies into how wealth is distributed show the percentages haven’t changed in the last 60 years. In that time we have seen our world go from the first television to the World Wide Web, now accessible from tiny mobile devices at broadband speed, and the information on doing almost anything is a Google search away. And despite all of this, guess what hasn’t changed? The percentage of wealth distribution. Yup, it’s still the same. The top few per cent of people still control the majority of the wealth in any industry, this is certainly obvious in real estate.

So what do the top 20 per cent of agents have, think about, invest in and behave like, in order to stay at the top no matter what the economic conditions or the market? The good news is the

34 |

decision is yours as to which group you belong to.

The agents that have chosen to be phenomenal do so in four primary areas of their business.

1. ATTRACTING NEW BUSINESS I’ve heard so many agents, trainers, bosses, and industry experts talk about prospecting in association with real estate careers. Many, if not most, top phenomenal agents don’t prospect. They have marketing systems set up so that a stream of potential clients calls them. The dialogue they use is very different from

that of a prospecting call. A prospecting piece of contact is generally done with a salesperson making an outbound cold call or door knock or the like, and basically begging for the opportunity to appraise and potentially list a property for sale.

However, a marketing system is designed to meet and start a relationship with a group of individuals, ideally a year or more before they are considering selling, then staying in touch using one of the many multi-media, multi-step marketing systems available. When the seller is ready for an agent they already have a 12 month track record of contacts;

And the un-phenomenal agents continue to interrupt dinner, making cold call after cold call, in the hopes of finding a property to list.

they will call in their agent, and only their agent, and follow his or her advice, thus making the sale a smoother one. The seller doesn’t see the relationship through the filter of betrayal and mistrust. They see the agent as a trusted advisor and source of valuable information, more like a consultant. And the un-phenomenal agents continue to interrupt dinner, making cold call after cold call, in the hopes of finding a property to list.

If a phenomenal agent must cold call they do so temporarily, until their marketing system takes over, and do so to gain contacts, not listings. Because think about it: what are the chances your cold call arrives between the time their situation changes and they need an agent, and the time they call their agent of choice? It happens just enough to torture us to death, but not enough to build a phenomenal business based on this flawed and antiquated method of attracting new clients. In fact, many agents have abandoned the word ‘prospecting’ altogether. Really, isn’t ‘prospecting’ just another way of saying, ‘getting your words into the eyes and ears of your target market’?

Prospecting is nothing more than an admittedly inexpensive, yet relatively inefficient form of marketing. So yes,

of testimonials, often including video testimonials as it is very hard to doubt their validity. A written testimonial with just someone’s initials can easily be interpreted by the reader as possibly fabricated.

And ‘demonstrable’ proof might include a role play of the agent’s skills. “Don’t just tell me that you get the highest price; show me precisely what you say in order to achieve that. Don’t tell me, show me and involve me!” your seller might be saying to themselves. Your marketing might even contain an irresistible ‘risk reversal’ guarantee, taking the risk of making the wrong choice off their shoulders and placing it firmly on yours.

3. DOING THE BUSINESS TO ATTRACT MORE BUSINESS One of my best clients, RE/MAX Marketer of the Year and International Top 15 agent Michael Spillane, and an agent who defines the word ‘phenomenal’, recently shared with my coaching group.

“The best way to list properties, Glenn, is to list properties!”

This seemingly obvious statement is more than it seems. What he’s saying is if you are doing what you are doing well, being seen by the market who are considering selling, and they watch you

Many experts believe it takes between 10 and 24 meaningful contacts per year before your marketplace even knows who you are. prospect if you are budget conscious, but get off the prospecting bandwagon and into the ‘direct response’ marketing business and you’ll see yourself heading towards phenomenal very quickly.

2. CONVERTING THE BUSINESS Most agents are adequate at doing a good 30 to 60 minutes of a half-decent listing presentation, but think about the ‘USP’ or ‘Unique Selling Proposition’ of most agents. They all say ‘I will get you the highest price in the quickest time’ or some other description of a successful outcome for the seller. Now they can’t all be telling the truth, but what chance has a consumer got of differentiating us from one another when we give them no reason to choose us over a competitor?

A phenomenal agent, however, does give them a reason. He or she backs up the claims with overwhelming historic and demonstrable proof. Historic proof can be in the form of various types

succeed time and time again, they will come to you as a natural result of your current work. So it becomes easier as you do a good job, and do it often and visibly.

You can imagine that if a potential seller witnesses a busy open house, well marketed and presented, and sees your property video playing in every room, your future seller is exponentially more likely to see the value in presenting and promoting their property with you. They see the way you want it done in order to get it sold for them, in a timely manner and for a great price. You need to capitalise on momentum in order to be phenomenal.

4. STAYING IN TOUCH UNTIL THEY NEED YOU AGAIN Chris Gilmour was already a phenomenal agent ($880,000 in his second year in real estate) when we implemented this last principle in his business. Up until then, like many of us, he was a ‘prospector’ but didn’t have a planned and systemised

follow-up system. Chris spent eight months honing and crafting his ‘multimedia, multi-step’ follow-up system, and his business has never looked better.

“The best way to list properties, Glenn, is to list properties!!”

We don’t have enough time in our day to give each and every person in our target market the attention they require for them to think of us as ‘their real estate consultant.’ So we have to let some automated and semi-automated systems supplement our face to face or phone-based contacts. Many experts believe it takes between 10 and 24 meaningful contacts per year before your marketplace even knows who you are, and for time management purposes many of these are going to have to be done via bulk communication or automated responses. But if this comes across as completely impersonal it may be ignored, so this is an art in and of itself: to make bulk and automated communication still meaningful and entertaining to your target market.

TAKE ACTION An early mentor of mine (and of many other top agents, including John McGrath and James Tostevin) suggested ‘The Power of an Idea is in its Implementation’. The above ideas, while lethal in the hands of an implementer, are completely powerless if they stay on the pages of this magazine and do not find their way into your business. So take notes, make a plan, don’t let ‘perfect’ get in the way of done, and take the first steps towards turning your business into the phenomenon that it can be.

‘Be phenomenal or be forgotten!’

The most historic event in Queensland real estate, the five year anniversary of the Queensland Real Estate Agents’ Summit. For more information on this event, aptly summed up by its subtitle ‘Be Phenomenal or be Forgotten’, visit www.qreas.com.au.

Glenn Twiddle is the ‘No BS’ Marketing and Success Trainer taking agents to #1 in their area in 2 years or less no matter where they are starting out. For more information, visit glenntwiddle.com.au. | 35

MARKETING

Mix Master You may have been following Ian Grace on sold-magazine.com.au, and in ‘the brief’ for the past few months. We continue his great series on real estate advertising with this next instalment about how to create the right mix across all mediums.

A

ll too often, I see agents with totally different ads for the same property in different media and they don’t even look like each other.

Either that or they are so ordinary, showing yet another front of a house, with nothing special about it for prospects to remember. In each case, it means that each ad has to start from scratch with the prospective audience or buyers, rather than having an accumulative effect to get the best results.

36 |

Once you understand how campaign advertising taps into your prospects’ conscious and subconscious minds to give your properties ‘top of mind awareness’, you will see how obvious and simple it is – and how amazingly powerful!

REACH, FREQUENCY AND OTS Advertising experts talk about ‘reach and frequency’ aimed at as many ‘OTS’ (Opportunities to See) as possible, for the best possible outcome. Agents mostly just

talk about ‘writing their ad’, usually in a rush to meet an advertising deadline or just to get the property on the Internet.

In other words, they would rather have a rushed, bad ad out there quickly than devote the time necessary to put together a powerful advertising campaign. If they did that, they would harvest the synergistic effect of getting all the media employed to work with and complement each other, rather than having them working in isolation.

Reach Very simply, with any advertising campaign the media planner in an advertising agency – in this case, the agent – selects their media by establishing how many potential prospects the particular media they are using will reach.

The more specific the media the better, so an advertising agency looking to reach and influence doctors, for example, might advertise in the Medical Journal, knowing that this medium will reach the specific audience they are after.

accumulative effect to the advertising.

Example: you are sitting at home watching television and on comes a TV ad about a four-wheel drive vehicle or SUV. Now, if you can see the driver, you can pretty well guarantee it won’t be an 80-year-old!

This is pretty straightforward: if the car manufacturer and their advertising agency have determined that their prime market is in the 38-year age group for example (that’s the who part of the advertising term ‘hoodoo’ explained earlier in the series), then they will

Research over the years shows us that people need to see the same ad – the same message – at least three times on average before they will react to it.

For real estate, while the Internet is available to all, there are luxury property sites designed to attract those who have the buying power for those types of property.

Certain magazines are designed to reach only affluent readers or areas, so these are a good media choice for a high priced property. Agents are actually very fortunate, because there have always been specific real estate categories, for example in newspapers and magazines, or standalone media, unlike those available to most other products or services.

Frequency and OTS A media planner will now gauge how many times (i.e. the frequency), the prospective buyer can see the same ad, the same message. A good campaign will reach as many of the right kind of prospects as many times as possible to give them the most ‘Opportunities To See’ (or OTS).

Why is this important? Research over the years shows us that people need to see the same ad, the same message, at least three times on average before they will react to it. That’s why a carefully planned campaign will give prospects the opportunity to see the same ad (and react to the same message) as many times as possible, even 10 times or more -- to catch those at the top end of the average.

MEDIA MIX ADVERTISING CAMPAIGN This expression just means a mix of different media, working with each other to give people as many opportunities as possible to see a memorable, positive message that will remain in their minds.

When that message is identical across different media, each time the buyer sees it the brain remembers and immediately ties them together, giving a powerful

go to the model agency and book a 38-yearold model, put them behind the wheel of a vehicle and away they go, driving on the beach, or rough terrain, enjoying themselves (that’s the do part of hoodoo).

Then the ad will be repeated time and time again. There’s your frequency.

Now, the next day when you are out driving your car, on comes a radio commercial which is the audio part of the TV commercial you’ve seen the night before.

What will your brain do immediately? It will do an instant match and will immediately recall the TV ad from the night before, showing the 38-year-old model driving and enjoying the vehicle.

Then once again the ad will be repeated time and time again: more frequency.

Next, you pick up a newspaper, magazine or perhaps a flyer or direct mail. Guess what the main photograph will be? Yes, the main visual from the TV commercial which is already filed in the prospect’s brain. The minute you see the ad, your brain will bring up the TV commercial you have already seen.

See how the media work together?

Can you identify with this example I’ve just related? I’m sure you can, as we see these media mix campaigns every day of our lives, selling us every imaginable product and service, whether it be cars, carpets or cornflakes.

Now think about this. If the ad in the newspaper or magazine showed the same vehicle with a front-on shot displaying the engine, instead of showing the visual from the TV special the night before, would that have worked? I’m sure your answer will be no; it just doesn’t make sense because there is no match for the brain to recognise.

Some might argue that the ad and photograph are still aimed at selling the same vehicle, although they may now

be talking to a different audience that is more technically minded and interested in specifications. Sadly, however, this means that all the money invested in the TV and radio commercials has now gone straight down the drain because there is no match, and therefore no recall.

Agents have the greatest opportunity -- the biggest media mix campaigns of all.

Most professional campaigns selling us products or services on a day-to-day basis will normally have a mix of around three to four media maximum. But how many media do agents have at their disposal?

Depending on which state or country you are in, let’s have a look at a potential list: • s many as our di erent nternet sites • Face ook eal state • video • data ase e mail • yer • newspaper ad • real estate maga ine • window display • photo sign oard • • plus may e and or radio • social media The list goes on – how many is that? Ten, 12, 15 or more!

Imagine the power if you can harness all those media to work with and complement each other, giving a huge amount of OTS with your campaign – with a memorable

You can harness the power of a media mix advertising campaign with every property you list from now on. message that shows a clear picture of what living there, in that property, will do for the buyer. Every time the prospective buyer sees the message again, it will be matched with what is already in their brain. They will become more familiar with it and it immediately gives them top of mind awareness of the property you are advertising.

So now you can harness the power of a media mix advertising campaign with every property you list from now on – and win every listing when sellers see you as the advertising expert in their area.

You can follow Ian Grace, otherwise known as ‘International Mr Real Estate Advertising, by visiting www.iangrace.com. | 37

AGENT PROFILE

Peter Shiplee LJ Hooker Mosman

Passion, dedication, and ‘a bit of fun’ are the keys to success for 36 year old Peter Shiplee of LJ Hooker Mosman. With a personal auction clearance rate of 100 per cent this year while working the ultra-competitive areas of McMahons Point, Kirribilli and Milsons Point, Peter is living proof that you can be successful in real estate, give back to the community, and still ‘have a life’. Profile by Samantha McLean.

W

HAT WAS YOUR FIRST JOB, AND WHAT WAS THE MOST IMPORTANT THING IT TAUGHT YOU? My first job was when I was ten. I got a job in the local butcher’s, cleaning the shop. It was great; I loved it. I was earning eight dollars an hour as a ten-year-old, and that was a lot of years ago so it was good money. I remember getting a bollocking from this big old butcher because I was half an hour late, and I put him half an hour late. So the job did teach me to be on time!

WHAT DO YOU LIKE MOST ABOUT YOUR WORK NOW? Probably the buzz. Money is always a consideration because that’s why we all work, but with this job, it’s more the challenge and the thrill of the chase in listing a property, and then finding the right person to buy it, and moving both into a position where they are delighted with the transaction. Where the buyer thinks they’re getting a bargain, and the vendor believes you have maximised their price, that is the biggest thrill of the job.

I’VE BEEN TOLD YOUR CLEARANCE RATE IS 100 PER CENT SO FAR THIS YEAR. HOW DO YOU MAINTAIN THAT? I think it’s a constant education of the buyer, and constant education of the owner. A lot of people would call that conditioning, but it’s not. It’s more presenting the buyer with the information that they need to make a decision. I’ve found – I don’t know whether it’s being a ‘country boy’ – that most agents, especially in this area, tend to hide what things have sold for, whether it be good, bad, or indifferent. As soon as somebody walks 38 |

into an Open for Inspection, you help them review all the comparable sales in that neighbourhood and then they make their own decision from there. And then it’s just obviously getting a level of trust, more than anything.

YOU STARTED SELLING REAL ESTATE IN 1996 IN PORT MACQUARIE. HOW IS SELLING REAL ESTATE IN THE CITY DIFFERENT TO SELLING REAL ESTATE IN THE COUNTRY? I think the main difference is the speed or pace of dealing with a city seller or a city buyer. It’s more they want information now, they need it quick, they need it concise. Get in, get out. I think my average meeting now is about 45 minutes with an owner when you’re trying to list a property.

In Port Macquarie, it used to be two and a half to three hours because you would go and have a cup of tea with them; you sit out in the garden; you get to know their family. Here, you have got to be very concise; still friendly, but people don’t have

“In terms of this area, there are some exceptional agents out there.” the same time in the city. But, again, that may be a generation/timing thing as well.

We have become a lot faster-paced with technology. So, come to think of it, I’m not sure if that was a ‘country’ thing because we’re talking about a decade ago now!

I didn’t get a mobile phone until about 1998-99. Everything was office-based. You worked nine to five. You didn’t really do after-hours appointments, because that was family time.

WHAT DO YOU FIND MOST CHALLENGING ABOUT WHAT YOU DO NOW? I think the challenging part will always be listing properties. That’s always going be a hard thing. In terms of this area, especially, there are some exceptional agents out there.

So you have to be top of your game every time you walk out of the office. It’s not like in some areas, where you’ll have one or two good agents, and you know you’re going to come up against them. You get intimate

go to every single morning. I go and sit there for 20 minutes, half an hour; have a cup of coffee; talk to the guys who are working there. It’s a family-run business.

They are all Greek, so the whole family works there. They talk about me to their clients. Their clients talk about me to their friends. And because I’m always seen WHAT DOES A TYPICAL DAY you there, have topeople build market over again. stopshare me –alleven if they have INVOLVE FOR YOU? IF YOU HAD A ‘SECRET SAUCE’ Starting the office from scratch in Thornleigh no intention of selling or buying. They will In our office, we have 15 sales staff. One OR A SUPERPOWER, WHAT with no experience was a test; however, both askand me, “What did this sell for? What did of the directors will literally be here at 7am myself WOULD IT BE? my agency have applied the that sell for?” is a way of getting and leave at 7-8pm at night. Then we’ve I can’t give that away! (Laughs) Every same methods to ourItBeecroft office, and we my reputation out achieve there. And it’s nongot other guys who have three or four agency and every agent is going do things will grow quickly and somethen fantastic forat thework. local community. stop kids; they start at 9:30 and they leave here results slightly differently. I think it’s more delivering by 5:30. I’ve tried each approach over the to the client what they need to know, and What was the most memorable property IF YOU COULD GIVE ONE PIECE years, and now I’ve worked out a system putting it in a way where you’re not just you have ever listed or sold?

LJ Hooker Thornleigh YOUNGER where you work damn hard when you’re telling them what they want to hear. You The OF mostADVICE memorableTO timeYOUR was breaking the SELF, WOULD IT by BE? here and make every minute count, but actually have to be strong in your approach suburb recordWHAT for Thornleigh at auction when everyone said there think it’s ‘don’t procrastinate, just do it’! then make sure you have your life outside overI $200,000 and tell the truth. In the end, it’s not only attained the Number transparent as possible to was And no way thethat property would sell for that!‘Fortune also famous expression of property work asaswell.

So I think my typical going toAmy helpKaslar you get the property sold One Sales person ranking internationally alleviate the stress that comes with such a Then there was where favours thea property brave.’ Ifin IBeecroft could go back in day is pretty frenetic! I don’t stop – even but, more importantly, it’s going to help the for the LJ Hooker Franchise for the significant decision. Our Thornleigh office a hoarder had lived for 35 years; I have never time, the amount of times I said, “I’m when people are chatting in the office, client actually maximise their dollars without 2011/12 awards year. She continues to holds very good market share, which means seen anything like it. We couldn’t take internal going to do that.

I really should try that”, it’swe “Guys, I’m busy.

I’ll talk to you after giving them that ‘pie inasthe thought break records hersky’ extraordinary get to meet more buyers to introduce photos, couldn’t let children inside or do but I never it andadvice always work.” a ‘get in and Opening then you process. negotiating You are onlyskills going tooutstanding disappoint and to our It’s clients’ properties. ourget out’ open homes, andtried everyone’s wasregretted it’s focus herwrong clientsexpectation. has seen her keep secondbecause office in Beecroft in April just it. tooAnd hard.now The woman in financial I’m justwas starting to try those attitude otherwise this2012 jobhas can them if you setonthe market share of 70% in her area. meant that weWe cover a much difficulty; we and sold the property in the endharder for things, at 36, they’re a lot to consume you. work six larger days aarea week.

I thinkamy secret ‘superpower’ as you with more exposure for our vendors; our over $1 million, and we personally organised do now. So I think fortune favours the Nobody takes a day off during the week, put it (laughs) is being a chameleon in When did you start in real estate? What team is extremely professional and we pride and physically helped with the removal of brave; and it’s so true in your personal so ourselves it’s full on. a way, matching personality typecareer? made youyour choose a real estate on maintaining great relationships. her items. It was probably one of the most life but more so in your work life. I take it As for my day, I wake up at about to somebody else also being to 13 I started in but November 1999, true so that’s rewarding sales. back to making a phone call. Everybody in do theyou morning andthe doindustry? a 15-minute background was in the hospitality 6:30 What love about yourself.years.

If youMy don’t agree with something, industry, when my father opened I love working withI reckon people and helping them What’s best advice you’ve been given? getsthe phone call reluctance; you have challenge, which everybody you’ve got to bebut able to make them feel our Thornleigh office I thought I could utilise get to where they want to be, whether that’s Start every day at zero. that fear, “What will I say? Oh, I’ll leave should do. It’s ten push-ups, ten sit-ups, at ease that, yes, you’re taking on board those skills within real estate, as I’ve always assisting young families to purchase their it tomorrow. I’ll leave it till ten o’clock,” enjoyed helping people. dream home to raise their children, or selling What are your most important values? instead ringinthem now.

“If you don’t agree with something, you’ve got Residential sales are really my speciality homes that have been in the same family Deliver what of yousaying, say you“I’ll will. just I believe If they sayand no,integrity. they say no.” It always honesty, ethics to be able to make the prospect feel at ease happens, and you just think, “Why haven’t transaction comes a different story, that,Every yes, you’re taking on with board what they’re What are thethem?” key features in maintaining I called knowledge about how they do things. Here, you might have seven or eight agents who, in real terms, you would unquestionably work with if you were in the same office.

And if you’re selling your own home, you’d be considering as :well.

P Rthose O Fagents ILE A So G that’s ENT definitely the most challenging part.

next property. But when clients suddenly walk into the office with a bottle of bourbon, or say, ‘Look, if you’re ever going away to this place, you can borrow my holiday home,’ for instance, it’s those little things which make your day worthwhile.

AMY KASLAR

which isthen extremely there is which saying, but steerrewarding them in aand direction never a dull moment. will obviously achieve an outcome which is rightthroughout for them inDistrict the end.”for over 100 years. Every transaction comes the Northern Region, where I’ve lived and worked over the

past 13saying, years. The cover what they’re but main thenareas steerwe them in are Beecroft, Cheltenham, Thornleigh, a direction which will obviously achieve an Westleigh, Normanhurst and Pennant Hills. outcomeThese which is right for them the in; end. areas are fantastic to in reside the

with a different story, which is extremely

andinthere neverof a dull moment. tenrewarding squats all the isspace a minute, but repeated over 15 minutes. So every What have been some of the real morning, you’re doingfaced 150inpush-ups, challenges you have the sit-ups, 150 squats. When I was first people are very friendly, there are excellent 150 business? the locations are perfect for A number of have‘There’s come and introduced tochallenges it I thought, no WHATschools DOESand SUCCESS LOOK LIKE families, with close access to rail. gone throughout my this.’ career;I starting way I could ever do startedvery off at FOR YOU PERSONALLY? young in real estate comes mind, when five.

So five push-ups, fivetosit-ups, fiveI Probably on a day-to-day basis, it’s more What do you believe differentiates your went straight into a sales role where I had to squats, and then you get the rest of the when the client surprises you in terms of a agency? learn the business very quickly. Being away minute off.industry Whentothe clock tickseven over, you thank you card or a personal referral.

Often We pride ourselves on our levels of service from the have children, start again.

– because the send-forget society where andoffeedback to all parties.

Communication though I wasn’t off for too long, meant that is a huge of what we do.

We make comingit’s back was abreakfast. huge challenge for me is Then always Breakfast everybody’s busypart – you get the thank you the process of either selling or purchasing peopleimportant can quicklything. forget about you and theasmost But then I’ve over thewhole phone and think, ‘I did a great job. chosen a café in my local area where I They’re happy.’ You start moving on to the

a healthy agent/vendor relationship?

Trust, honesty and communication.

WHAT’S NEXT FOR YOU They need to trust you; the lines of IN TERMS OF YOUR communication need to be open and GOALS?at the you PERSONAL need to set up expectations beginning of listing. goal Always stayproperty.

A short-term is be to honest, list more in control and be professional.

I do have a number, butIt’sI what never disclose we’re paid to do.

that to anybody bar my boss or my mindset goal is tothat list the Do you have acoach. mentor,My or someone rightyou? number per month, where I’m busy inspires nothas toobeen busy. an assistant; Bobbut Bohlen myThen coachit’s since September getting2010. one or two assistants to take away things that I’m obviously not good What would be your dream job, or where at (and I know what they are!) And then to from here? a this long-term goalreally is tohave ultimately I love job and you to, givenbuy intoand thisdowns business and the ups it canand bringstart and teaching the longmentoring hours – but the with younger that comesguys. absolute I do want to satisfaction.

Moving my I’ve focuslearned, and teach and passforward, on what build something for myself.

Turn your pending commissions into cash! www.expresscommission.com.au Ph: 1300 738 211 Fax: 1300 731 840 46 | List more! Sell more! Be more efficient! It’s in sold

| 39

TOP TIPS

Dave Eller’s guide to

awesome Dave Eller is a successful Real Estate Coach, Auctioneer, Author, and Fight MC on Fox Sports and it doesn’t get much cooler than that! Here are his top tips for getting (and staying!) ahead of your competition.

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s many working people have found, your ‘day-job’ can consume all your time; so much so that you can get into a rut. You end up doing (and achieving) the same things as everyone else. So, I’ve identified the top 13 things (why stop at 10?) you can do which will set you apart from the competition.

1. PIMP YOUR RIDE What do you listen to while you are driving around? Music is great: I love screaming out the lyrics to Khe Sahn as much as anyone, but think how much time you spend in the car. This is a fantastic opportunity to learn. There is a plethora of educational, motivational, and spiritual CDs available to turn your ride into a university on the go.

2. READ REAL ESTATE BOOKS Educating yourself is essential in this day and age: it doesn’t need to be formal face-to-face education. Understand more about how successful agents thought and the strategies they used by reading books. Learn what others have done to become successful to give yourself a great platform to build upon. Besides specific real estate books, you can find books that outline tips for you to model success from other industries. The book The Eight Habits of Highly Successful People by Jean-Marie Stine is a good one to add to your collection.

3. DRESS LIKE THE PERSON YOU WANT TO BE There is an old saying, ‘clothes maketh the man’ (and woman!) What you wear and how you wear it says a lot about 40 |

you. Some real estate agents look like they got dressed in the dark, or in their car. Be a professional and dress like one.

The way you dress does not stop at your ankles. Women know the importance of good shoes. Men need to catch up in this regard. Clean, shiny shoes say you take pride in yourself and what you do.

4. LOSE THE MOBILE PHONE When it’s time to hit the sack, leave your phone out of the bedroom. Firstly, the

effect of the radio waves on our brain is now becoming apparent, and it’s not good. Our phones are close to us all day; I like to put a bit of distance between it for my time of rest. Secondly, many people use the alarm clock on their phone to wake them. From personal experience, when I have to get up at 5am in the winter to go to training, I’m less likely to hit the snooze button if I physically have to walk to the kitchen to turn the alarm off.

5. KEEP YOUR WORD Real estate agents have a bad reputation for not doing what they said, not following up, not calling back and so on. Don’t make casual promises. Be the agent who is known for keeping their word. Your reputation will lead to repeat business.

6. ALLOCATE SOME THINKING TIME Think about ways to do things better, how to provide a better service, how to make yourself stand out. Whether it works best for you in the morning or at night when the madness of the day has subsided, take some time to yourself to ponder. You never know what you might come up with.

7. TAKE A MOMENT OF NOTHINGNESS It is equally important to take a few moments every day to enjoy absolutely nothing. Just like an episode of Seinfeld, it’s the moments of nothing that make it special. Our lives can be very busy, and enjoying some nothing time makes it really something. But it does need to be scheduled into your day, otherwise it will become another thing you didn’t do. Mark it down as an appointment with yourself. It could be the most important appointment you make.

8. UNDERSTAND THE POWER OF VISUALISATION Top athletes swear by the power of visualisation: seeing themselves winning.

This is available to each and every one of us. Dare to dream and see yourself where you want to be. This doesn’t need to take hours: a few minutes each day is sufficient.

Make it a morning ritual. Set yourself up for a good day. Set yourself up to win.

9. SWEAT A LITTLE A sad fact of our times is the increasing number of people who are becoming obese. Exercise has more benefits than just keeping you looking great: exercise releases endorphins in the body that help you feel great too. Exercise reduces stress, reduces the chance of cardiovascular disease, and increases your ability to lead a sickness-free life so you can have energy to play with your kids, your mates or sell more property. A little is better than none, so just do it!

10. MIND YOUR MIND Studies show that keeping your mind active reduces the risk of it deteriorating as you age. Learning new things is beneficial to

It is equally important to take a few moments every day to enjoy absolutely nothing.

moments a day: done almost anywhere.

I recommend the book Teach Yourself to Meditate by Australian meditation teacher Eric Harrison.

12. BECOME A MASTER OF SELF-MANAGEMENT How much TV are you watching? How much time are you spending on Facebook keeping your friends updated, or trying to beat your highest score on X-Box? There is so much more you can do with your time (all the things mentioned above!) I am not trying to sound like your mother, but if you want to be more successful selling real estate, or anything else for that matter, you have to master self-management. If you want to be the best you can be on X-Box then so be it. If you want to propel yourself to new heights in real estate and become a top performer, then your X-Box will have to suffer. Game over.

maintaining the health of what’s between your ears. Instruments, languages and new concepts challenge your brain to be on top of its game. Speaking of games, Scrabble and chess are sure winners for mental fitness.

Write poetry, create songs, read books: keep your brain in mint condition!

13. WAKE UP! The other piece to the puzzle of trying to find more time is to wake up earlier. I know… who would have thought? Just half an hour earlier will let you get a few more things done: a morning meditation for ten minutes, followed by ten minutes of nothing time and five minutes of visualisation. That leaves five minutes to practise that new song on your guitar. What a great start to the day! I’m feeling good already.

11. PRACTISE MEDITATION An extension of exercising your mind is to meditate. Meditation has been around for thousands of years and is much more than a technique for relaxing. It’s a great way to overcome stress, increase your capacity to think clearly and keep you healthy.

Meditation doesn’t require sitting for hours with your eyes closed. It can simply be a few

Dave Eller is Australia’s leading Connection Coach for real estate sales professionals - connecting them with passion, success and work / life balance. He is a Licensed Agent, Auctioneer and nationally qualified industry trainer, for more information visit www.daveeller.com.

©scottya | 41

PERSONAL DEVELOPMENT

Avoiding

Professional Burnout

It’s very easy in real estate to feel the need to do more and more and more, which left unchecked, can have a negative impact on our lives. And it can happen at any time to the best of us. Terri Cooper, coach and trainer, was brave enough to share her personal experience with us, including how she got back on top.

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ymptoms – overwhelm, brain fog, uncontrollable fits of crying (usually at inappropriate moments), fatigue, lethargy, and most commonly, loss of ‘mojo’ and enthusiasm. If none of this sounds familiar then maybe skip to the next article. But if you are ticking some of these boxes then read on.

The medical definition of ‘burnout’ is: ‘an extended period of time where someone experiences exhaustion and a lack of interest in things, resulting in a decline in their job performance.’

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The reason why we often don’t recognise it until it is too late is because these symptoms are probably what we all experience at some time. But what if they don’t’ just go away – what then?

1. EXHAUSTION Do you feel tired all the time, even if you’ve had a good night’s sleep?

Exhaustion can affect us emotionally, mentally or physically, leaving us with no energy and feeling completely spent.

4. NOT TAKING CARE OF YOURSELF Relying on alcohol to wind down every evening, smoking more, being too tired to exercise, not eating enough or eating too much junk food, drinking too much coffee, not getting enough sleep – or maybe sleeping in more. Finding it difficult to summon up the energy to drag yourself into work in the morning.

5. BEING PREOCCUPIED WITH WORK… WHEN YOU’RE NOT AT WORK Do you find it impossible to shut the door and walk away at the end of the day?

STAGE 2: TIME OUT I can already hear you saying: ‘Yeah right – as if I can take time out! Who will look after my clients, who will fill in for me while I go home and rest? Get real – this is real estate!’

But you know what – if you don’t take time, the universe will take soon take the decision out of your hands! This happened to me, as it has happened to so many others.

A whole month where even getting out of bed was an effort, keeping up appearances a huge task, and every atom in my body crying out ‘Enough’.

Don’t be like me. Don’t wait. Take time now – even one full day each week – no phone and no computer will make the world

I can already hear you saying, “Yeah right – as if I can take time out! Who will look after my clients, who will fill in for me while I go home and rest? Get real – this is real estate!”

2. LACK OF MOTIVATION Is it harder to get enthusiastic about things you used to enjoy? Have you lost your ‘get up and go’ so you have to drag yourself into work every day?

3. FRUSTRATION, CYNICISM AND OTHER NEGATIVE EMOTIONS You usually love your work; you may have your moments but you used to get over them easily. But now you are disillusioned with everything – your clients, your colleagues, your boss. In fact you begin to question why you are still in the industry.

What’s the point really? Or maybe you’re just feeling more pessimistic in general than before.

If you’re metaphorically taking it home with you and mulling over your job every minute, you can’t recover from the stress of the day. Make sure you get time to yourself after each task to recover, and make time later to stop reflecting about work altogether.

If any of these are you, don’t despair – there is life after burnout!

I have just traversed this path to the light. I recognise your pain; I identify with every dark thought, I empathise with every despairing cry. This was me so recently, that I now need to do whatever it takes to hold your hand if this is you. These are the steps to sanity, which worked for me, and I know can work for you.

STAGE 1: RECOGNISE AND ACKNOWLEDGE YOUR PAIN Only share with non-judgemental friends and/or family. What you need is a safe place to unload, to be honest, to admit the overwhelm. You don’t need someone who offers well-meaning advice or ‘therapy’. What you need is a safe place to talk without fear of recrimination.

You need someone who loves and supports you – but more importantly someone who has amnesia, who remembers nothing of what you have shared and never brings it up again unless you initiate the topic.

of difference. Leave a voicemail or an auto responder; the right people will understand.

STAGE 3: GIVE YOURSELF A BREAK Nurture yourself. Be gentle with yourself.

Become your own best friend. Imagine if your best friend came to you feeling like you are feeling right now? Would you say: ‘Oh for heaven’s sake, pull yourself together! It can’t be that bad! Look at all the wonderful things you have in your life!’ Or would you give them a huge hug, a cup of tea (or a glass of wine) and send them off at your expense for a stress-releasing massage?

Just think about it. We are often harder on ourselves than we would be on our friends.

We push and push ourselves, and then cripple ourselves with guilt because we are not coping in the way we think we should.

So please be gentle. Treat yourself as you would your own best friend; love yourself enough to give yourself a break. Give yourself the gift of time out. You will bounce back higher than ever before.

Terri Cooper is one of the founding members of Women in Real Estate, created with Julie Davis to build a community of women who really can identify with the unique challenges that a life in real estate presents. | 43

MARKETING

Feng shui

for real estate agents

With the current influx of Chinese investors buying Australian properties, some real estate agents will have been disappointed to learn that the only reason keeping them from signing the contract was the feng shui of the property. Esther Yong explains how this can be avoided.

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t is true that some Chinese, especially those from Hong Kong and the southern part of China, practise and believe strongly in feng shui – to the extent that feng shui masters are sometimes flown in from overseas to attend open inspections! We have seen a feng shui master have the final say on a deal even though the buyers really loved the property. They may end up in homes which are inconvenient or unsuitable, but they bought the place anyway all in the name of feng shui.

As bizarre as it might sound, the good news is that the majority of Chinese today practise feng shui at a very basic and

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simple level. As long as the basic criteria are met, most of the time they care more about the practicalities like price, location, design and so on, like any other buyer.

BASIC STRATEGIES We are far from being feng shui experts and we will not try to be. However, we are able to share some basic strategies of how to handle common issues when it comes to dealing with feng shui-driven clients, and how to turn those issues to your advantage when you market the property.

There are three common points that most buyers will look for:

1. STREET OR HOUSE NUMBERS If your property address has number 8 or 9 on it, congratulations! You’re off to a good start.

The pronunciation of the word for number 8 in Chinese is ‘ba’ and sounds like the word for prosperity, which is pronounced ‘fa’. This number is so auspicious that some Chinese will pay a premium for it. We recommend agents make a big selling point out of the number when you are marketing the property.

Make Number 8 part of your tag-line; even better if you can paint a huge 8 on the front entrance! Don’t believe me?

Whenever you are on the road, take note

of car number plates like 1688, 8888, and check out the ethnicity of the driver.

Number 9 is a homophone of ‘everlasting’ and is pronounced ‘jiu’. If your property address has number 9 on it, a good marketing strategy might be to target young newly-wed Chinese buying their first home together!

On the flip side, if your property address consists of numbers 4, 14 or 44, some hard work needs to be done.

Number 4 is the homophone of ‘death’, pronounced ‘si’. Chinese will often make every effort to avoid anything to do with it. However, we have seen buyers who love a property so much that they are willing to make some sacrifices. To remedy the situation, on their main entrance where they put the number 4, it will be followed by the Chinese characters ‘si ru yi ‘(事如意).

Reading the number 4 and then the three characters together gives the pronunciation ‘si si ru yi’ (事事如意) which means ‘prosperity in everything’. That would counter the bad luck, as some would view it, of the number. Some homeowners pretty much hang the 4 upside down so it does not look like a 4 – as long as the postman recognises it!

We have seen a feng shui master have the final say on a deal even though the buyers really loved the property.

If your property has a number 4 on it, don’t panic. Tone down on the address, and if buyers pick up on it share these ideas with them. If the property is attractive enough, they might actually use your ideas!

2. LOCATION OF FRONT AND BACK DOORS Another common belief in feng shui is that if the front door is aligned directly across from the back door, chi or energy will pass quickly through the house, meaning the house is not good at preserving wealth.

This issue is an easy fix (and one to take note of during open for inspection times).

Put up a screen or reposition your furniture to create a redirection of flow. Investigate the possibilities with the buyer; for example,

reflect the negative energy away from the sharp objects.

To make this more interesting, an uncle of mine who is an extensive practitioner of feng shui once engaged an architect to design his main entrance in such a way.

Reflective mirrors were placed at an angle to reflect the sharp objects opposite, but tilting away from the river bend which was meant to bring in his wealth. The design concept of the facade was largely feng shuidriven, albeit very beautifully done. When

As Donald Trump said, “I don’t believe in feng shui, but I use it because it makes me money”. putting a round table between the doors so the chi spins around and gets retained in the living area where there is a huge ornament to trap the good luck, and so on.

You will be surprised at how a discussion like this will build a strong rapport between you and the buyer. They will appreciate your efforts, too, in trying to understand their culture.

3. MAIN ENTRANCE Like any other culture, the main entrance is the face of the house and it is important that it is presentable. The Chinese always love a grand entrance. Huge entrance doors with plants and flowers leading to them always score. However, one key thing that usually turns Chinese away despite the grandeur is the direct alignment of the main entrance with sharp objects like a big tree, streetlamp or telephone pole.

They call this ‘sha chi’ or negative energy; it reduces the overall prosperity of the property, making it undesirable to live in.

Luckily, like any negative energy, there will always be something to counteract it, and in this case the most common remedy is to place a mirror over the door, which will

he listed the property on the market, a nonChinese buyer actually fell in love with it because of the facade and paid a premium for it. Now, tell me if this is not good feng shui – or good design!

Feng shui is an ongoing contest, as different schools of thoughts have different practices. However, the key point is to understand that rather than seeing it as something that might jeopardise your sale, you can find ways to work it to your advantage. Remember, for every negative chi there will always be a positive chi to counter it.

And this is true whether or not you believe it. As Donald Trump said, “I don’t believe in feng shui, but I use it because it makes me money”.

Esther Yong is the cofounder of the first Australia based Chinese real estate advertising platform, ACproperty.com. au. ACproperty.com.au are a widely recognised choice by both established and boutique real estate agencies to market effectively to the Chinese buyers. | 45

HUMAN RESOURCES

Having the tough

conversations Do you need to have a performance-related conversation with an employee? Do you need to tackle the boss for a pay rise? Are you looking forward to it? In all likelihood, probably not, and you are not alone. HR expert Liz Johnston has some tips on how to tackle different types of difficult conversations in the workplace.

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ifficult conversations: We all have to have them at some time; no one really enjoys them and usually, we will do anything to avoid them.

What makes these types of conversation ‘difficult’? Firstly, the need to have a difficult conversation doesn’t usually happen overnight. Often there is a buildup to the situation. What starts off as a relatively manageable issue can quickly become unmanageable as our minds churn through every possible outcome.

By the time we are actually ready to raise the subject, there is a significant build-up of emotion. Once this happens, rather than arranging a mutually beneficial time

‘difficult conversations’: an employee raising the subject of a pay rise and a manager having to address performance issues with an employee.

TEN TIPS FOR PREPARING FOR A CONVERSATION ABOUT A PAY RISE 1. When you set up the meeting, make sure you let your manager know what you want to discuss and give them the courtesy of enough time to prepare. A professional location for the meeting is important.

A coffee shop is not the place to be discussing a pay rise.

2. Have clear objectives of what you want

What starts off as a relatively manageable issue can quickly become unmanageable as our minds churn through every possible outcome. to discuss this all-important subject, we choose to raise it in what we think is an opportune moment.

Unfortunately, at times like these, you rarely find the other person in a receptive state. Being on the back foot, they will either push back or avoid the subject to try and get some head space. The situation is therefore unresolved and they walk away with the perception that something isn’t right, and somebody is to blame.

But having a ‘difficult’ conversation doesn’t have to result in hardship or problems. What is takes, as the definition suggests, is effort, (or planning), understanding (of the situation and the person or persons with whom you are raising the subject), and most importantly, skill (achieving a win/win outcome).

Let’s look at two common topics of 46 |

to achieve in the meeting. Research the market for relativities in terms of salaries offered for your role in the market in which you work. Guessing what the role is worth is never helpful and neither is comparing yourself to your colleagues. Telling your manager you know you don’t earn as much as your colleague/s does not build great trust and confidence with your manager.

3. Open strongly with positive statements about your work and your role, the company and the team.

4. Be honest about your performance and achievements to date. Remember: effort does not always equal outcome.

What have you achieved? What positive effect has this had on the business?

5. Be professional, not combatant. This reduces the risk of the meeting going off subject and becoming something completely different.

6. Be clear and realistic in your expectations. Set yourself a range for the increase. Don’t expect your manager to come back to you with a figure. It will never be what you expected so you are far better to approach the subject with a fair and reasonable number in mind.

7. Be clear in your mind about what you will negotiate on and what you will not.

8. Your manager may ask for more time to consider the facts you have presented.

This is the time to set the follow-up discussion. If your manager wants to ‘come back to you’, be polite and ask when that might be. Don’t be afraid to follow up on the agreed deadline.

9. Be prepared for a refusal and be prepared to hold your ground, without emotion, and ask why? If it’s an outright refusal without further consideration, then you have your answer. You also have a choice.

10. Politely close the meeting and thank your manager for their time. You can consider your options later as to whether you are satisfied with the outcome or not, and take action from there.

PREPARING FOR A CONVERSATION ABOUT PERFORMANCE No one likes to tell someone they are not performing in their role and equally no one likes to be told they are not performing. This is probably why it is one of the biggest areas of avoidance in business today. Like all difficult conversations, the discussion needs planning, skill, effort and understanding.

1. Don’t wait until it’s too late to have the conversation about performance. Early intervention is a highly successful strategy.

2. Depending on the issue, you may think the outcome is a foregone conclusion. Everyone has a right to reply and should be given the opportunity to present their side of the story.

3. Research well. Have hard data that supports the issues you wish to raise. It is not enough to have a ‘sense’ that something is not working well or unsubstantiated feedback from others.

Even issues with behaviours can be supported by hard data – for example, consistently coming to work late; leaving early; extended lunch breaks; numerous cigarette/coffee breaks; written complaints from staff and/or customers. A ‘one-off’ is not necessarily a performance issue. Consistent issues create patterns of behaviour and performance.

4. Be open and transparent in your arrangement of the meeting. Avoid booking the meeting on a Friday afternoon or just before the employee is going on leave. Also make sure the meeting room is not in full view of the rest of the office.

5. The overriding objective of any performance issue meeting is to improve the performance of the employee to the

level of expectation of the company.

6. Be very clear about this when opening the meeting with the employee.

7. Take notes. Advise the employee you will be taking notes, which are for your records. Let them know that they are also welcome to take notes.

8. Confirm that confidentiality is key.

You don’t want the employee to discuss this matter with the rest of the office and you should ensure you don’t allow the subject to become common knowledge.

9. With increasing pressures of life and work in our society, after opening the meeting a useful strategy is to ask the employee if there is there anything happening in their life at the moment that

Don’t wait until it’s too late to have the conversation about performance. may be affecting their performance at work. Sometimes this simple question can help to explain much of what is affecting an employee’s performance.

10. Be prepared for a range of emotions that may arise. Stick to your objectives and keep calm and positive about the outcomes; be prepared for push back, especially if this comes as a surprise to the employee. The most important outcome is you achieve a mutually agreed way forward, with clear and measureable objectives. It is also important you quickly arrange follow-up meeting/s and make sure they don’t slip.

Having a difficult conversation doesn’t have to result in hardship or problems.

While you won’t always achieve a win/ win outcome, it is important to be able to say you handled yourself professionally.

Planning, research, respect for those involved, clear objectives and a positive attitude will go a long way to help you achieve that.

Liz Johnston is a Senior HR Professional with 16 years’ experience in financial services, telecommunications and sales, advising at both a senior management and executive level in such areas as leadership development, HR process improvement, succession planning and talent development. | 47

MARKETING

A uniform approach There are some good reasons for introducing a custom staff uniform for your office; both from a branding and a financial point of view says experienced marketer Jess Wheeler.

M

any franchise brands offer branded clothing, but have you ever considered creating your very own staff uniform? With the help of an experienced outfitter, it could be much easier than you think.

1. YOU CAN DO AWAY WITH A COMPLICATED DRESS CODE AND CREATE A SENSE OF UNITY AMONG YOUR TEAM. Creating one uniform for a range of different people might seem tricky at first glance. Fortunately, there’s no shortage of quality options available, and you can always give your staff a variety of garments to choose from.

they don’t have to spend their hard earned money on a fashionable and potentially expensive wardrobe.

2. YOU WILL BE ABLE TO OFFER GARMENTS THAT SUIT YOUR LOCAL ENVIRONMENT AND COMMUNITY. Breathable fabrics for hotter climates and layered thermal jackets for colder environments can all be easily sourced when you team with a professional uniform provider. Or perhaps there are cultural factors that need to be considered and the options available to you currently don’t take this into consideration. With your own uniform range, you can ensure you are able to offer

Rather than simply being an extra cost, staff uniforms present an excellent branding opportunity with unique marketing potential.

Most real estate agencies set a dress code for employees which specifies the type of clothing that should not be worn. If your dress code isn’t very specific, or if you don’t enforce it very well, you may end up with some employees pushing the limits and wearing inappropriate clothing. With a uniform, you don’t have to worry about deciding what is – or isn’t – appropriate work attire. Uniforms make writing a dress code simple because you only need to specify how the uniforms are to be worn.

Without a uniform, you also risk some staff feeling pressured to ‘keep up’ and compete with co-workers. Employees may use their ability to dress ‘better’ as a social status within the business. Some level of competition in a thriving real estate agency is healthy, but a staff uniform could help you build a more cohesive team environment.

Some members of your team may feel relieved and appreciative when they know 48 |

your staff a more appropriate range of clothing, and a collection they are thankful for and happy to wear.

3. YOUR STAFF WILL BE MORE VISIBLE AND INSTANTLY IDENTIFIABLE, INCREASING YOUR LOCAL RECOGNITION. Your agency’s image is important, and your staff interact with the public a great deal. Rather than simply being an extra cost, staff uniforms present an excellent branding opportunity with unique marketing potential.

When you think about it, even a small agency has their uniform visible to the public for over eight hours per day, six days per week - and that’s a lot of exposure for any business.

To make a uniform work hard for your business, you should add branding that is specific to your individual office. Anything that sets you apart from your competitors in

your regular advertising could be included on your uniform: a suburb name, a tag-line – anything that reminds your local community of your individual business.

Whenever a prospective client sees your employees wearing the uniform – whether they are inside your office or out at an open – they are more likely to remember your company’s individual name. Over time, the uniform will become a part of your office’s branding. Professional attire can attract new clients to your business, or better still remind existing customers to use you again.

Uniforms also make it easier for people to identify your staff. Whether it’s your newest property manager conducting a round of inspections, or your best-known agent conducting an open, the people they are interacting with will instantly recognise where they work. People want to discern who you are in these situations, and with a well-branded uniform your clientele will know straight away.

Staff may also be able to claim a tax deduction if you enforce a compulsory uniform. Conditions apply, so you should discuss your eligibility with your accountant and the ATO. Jess Wheeler is a Marketing Consultant who specialises in delivering creative marketing solutions to a diverse range of industries, including ecommerce, finance, real estate and automotive. For more information visit outsaucemarketing.com.au.

The Magazine for Property Management Professionals

Economy, Business or

First?

50 Economy, Business, or First?

54 The Plus Factor 56 Split Personalities 60 Top Property Manager 62 Leasing at a premium 63 Winning Mindset

Economy, Business or

First?

Taking a retrospective look at how the business of property management has evolved from his time as a ‘letting clerk’, Bob Walters takes a look at how different types of property management businesses are performing. Is your business flying economy, business, or first?

50 |

T

HE PAST The property management industry in Australia has evolved enormously over my 40-plus years in the business.

When I started work in property management as a fresh-faced 18-year-old in a large real estate office in south-western Sydney, I was given the role of ‘Letting Clerk’.

As the name suggests, my main role was to lease properties (mostly flats) and ‘assist’ the Property Manager.

What I wasn’t told at the job interview was that a Letting Clerk is at the very bottom of the property management ‘food chain’ and that I would also be responsible for putting the garbage out, picking up the boss’s dry cleaning and making everyone in the office a coffee whenever they felt the urge.

There was no office induction program; there was no structured training, either on or off the job; it was just ‘Bob, here’s the desk, here’s the phone, lots of luck, and you’re on your own’.

There were no computers, fax machines or

the like. When it came to receipting rent, it was all done by hand and then transferred to a ledger card. If you lost the tenant’s ledger card, basically you were stuffed.

There were no photocopiers, at least not the sort of copiers you use today. We had a ‘roneo’ machine. For those of you who are too young to know what a roneo machine is, it duplicates documents using messy ink and a roller (with a handle on the side).

The most modern piece of equipment in

morning, door to door. So every Saturday morning at 7.30am, I would set off from home in my Valiant Galant car with a receipt book and a Gladstone bag. A Gladstone bag, in case you don’t know, is like a racing bookmaker’s bag.

I would drive around the Canterbury/ Bankstown area of Sydney going into the blocks of flats we managed, knocking on doors and collecting rent (which averaged $25 per week at that time). Not only did I have to collect tenants’ rents, but in many of the blocks of flats there were communal laundries with coin-operated washing machines and dryers that I had to empty of coins.

I would empty these machines, put all the coins in bags, go back to the office, count the coins, and then deposit the money into the landlord’s bank account.

And today’s property managers complain about doing it tough with rent collection and arrears!

Month end would take three days because each rent statement had to be typed manually (in duplicate with carbon paper). Most landlord clients wanted to be paid by cheque, so they had to be written out by hand. For those clients who wanted their rent monies to be paid into their bank accounts, we had to write out the cheques, fill in bank deposit slips and go from bank to bank (always having to stand in a massive queue, of course) banking the cheques.

Over the past 40 years, as you well know, work practices, office equipment and technology have improved and the average property management office is a lot more administratively efficient than the office of yesteryear.

THE PRESENT The prime challenge for today’s property management business is meeting and exceeding the customer service demands of highly educated landlords and tenants.

So using my 1970s experience in property management as a benchmark, what would it be like starting work in a property

With a greater use of technology and automation it will be possible for property management businesses to manage more properties with the same level of staffing. a property management office 40 years ago was an electric ‘golf ball’ typewriter – real cutting-edge machinery!

Another of my duties as a Letting Clerk which they never told me about at the job interview was to collect rent every Saturday

management office today?

To answer that, I will need to divide Australia’s property management businesses into three categories. I will use the airline analogy and call them First Class, Business Class and Economy Class. | 51

THE ‘ECONOMY CLASS’ PROPERTY MANAGEMENT BUSINESS

THE ‘BUSINESS CLASS’ PROPERTY MANAGEMENT BUSINESS

THE ‘FIRST CLASS’ PROPERTY MANAGEMENT BUSINESS

Today’s ‘economy class’ property management business, in my view, has the following characteristics: • t is a real estate agency usiness that specialises in residential sales, where property management is a secondary activity (which can create a ‘them and us’ culture in the business) • he property management department is treated like an ugly duckling having to swim among the swans (salespeople) • usiness owner who spends most o his or her time on the real estate sales side of the estate agency business and occasionally ‘visits’ the ugly duckling (property management department) to show he/she cares – usually to come in and criticise everybody in the department • here is no usiness plan or the property management, so there is no vision • here is no udget or the property management department, so there are no planned, specialised financial resources • here is no separate ro t and Loss ccount or the property management department, so there is no financial scorecard to determine whether the department is profitable or not • here are no documented systems except that stuff that resides inside the heads of the people populating the department • here are no o descriptions or key performance indicators for the people in the property management department so there is no clarity o o roles and accountability • here are no regular activity and performance recording tools, so lots of profitable business opportunities are squandered • he people in the property management department are put at desks in the office that are not conducive to efficient work output, so it’s interruption city • he technology in the property management department is not up to date, so it’s ‘let’s do things the hard way’ • here is little or no structured or planned training • here are no documented customer service standards.

Today’s ‘business class’ property management business, in my view, has the following characteristics: • t is a real estate agency usiness that specialises in residential sales, where property management is a secondary activity • he owner o the usiness genuinely wants the property management department to be successful, but often either gets distracted from making it happen or doesn’t know how to do it • n owner o the usiness spends most o his or her time on the real estate sales side of the estate agency business, but either meets regularly with the people in the property management department or gets regular reports from them • here is some sort o usiness plan or the property management department, but the only person who knows about it is the owner • here may e a udget or the property management department – even if it’s in the owner’s head • here could e a separate ro t and Loss ccount or the property management department, but are the expenses correctly allocated to give a true picture of profitability?

• here is a scattered array o systems usually a procedures manual that most of the people in property management have never seen, together with a handful of forms and letters • here are o descriptions or each person in property management even i it is ust a basic list of duties with a name on it • here is a monthly report on the performance of the property management department even i it s ust a report on revenue, gains, losses and lettings • t is possi le that the people in the property management department may have a work area that enables them to get work done without being distracted by everyone else in the office and every ‘blow in’ person coming into the office • he technology in the property management department is up to date enough to enable work to get done with reasonable efficiency • here is some training going on albeit mostly reactive to seminar and conference brochures • here may e documented customer service standards, but no one is ensuring that the people in property management comply with them.

Today’s ‘first class’ property management business, in my view, has the following characteristics: • t is either a real estate agency business that puts equal emphasis on both sales and property management, or a stand-alone property management business • he owner o the usiness has a burning desire to ensure that the property management department is successful • n owner o the usiness may spend most of his or her time on the real estate sales side of the estate agency business, but either meets at least weekly with the people in the property management department or gets weekly reports from each of them • here is a care ully thought out business plan for the property management department that has had the involvement of the whole property management team not ust the business owner • here is a documented udget or the property management department • here is a separate ro t and Loss ccount or the property management department • here is a ully documented policies and procedures manual with supporting forms, letters and checklists that everyone in the team must comply with and is regularly reviewed • here are o descriptions or each person in property management together with individual key performance indicators • here is oth a weekly and monthly report on the performance of the property management department covering all ma or activities • he people in the property management department work in a distraction-free environment that enables them to get their work done in an efficient, timely manner • he technology in the property management department is cutting-edge • here is oth an individual and team training plan in place • here is a documented set o customer service standards in place that all property management team members must comply with.

52 |

THE FUTURE So what will the future of the property management industry look like?

Both landlords and tenants will continue to be well aware of their legal rights, and customer service demands on property managers will increase. So those property management businesses who don’t continually strive to improve their customer service levels will be swept aside!

Either property owners will chose to lease and manage their own properties or they will seek out the services of the ‘first class’ property management businesses, the ones that take service and efficiency seriously.

‘Economy class’ and ‘business class’ property management businesses will be under increasing pressure to either lift their service levels or reduce fees. Both of these will have a negative effect on profitability.

So how will current ‘economy class’ and ‘first class’ property management businesses be able to survive or prosper in the future?

The key is systemisation. The ‘system’ should manage the properties and the people should manage the ‘system’.

By systemisation, I mean things like: • usiness plan • udget • ro t and Loss account • ey er ormance ndicators • usiness activity and per ormance tracking tools • olicies and procedures that are up to date efficient and rigidly enforced • he latest and most highly eatured technology to get routine tasks completed in a time and cost efficient manner • sta ng structure that is customer service ‘friendly’, cost effective and provides satisfactory levels of job satisfaction • documented customer service system t the risk o sounding negative or a

minute, from my experience of over 40 years in property management most ustralian property management businesses existing today are either not profitable or not as profitable as they could be.

So when the customer service demands of landlords and tenants continue to increase in the future, together with the need to reduce errors in practice (which often lead to expensive litigation), the only way for property management businesses to survive and prosper will be to continually find ways of reducing the costs of routine activities currently performed manually.

This will allow these businesses to focus their energies on servicing the needs of their clients and customers and creating long term loyalty. How? By systemising and automating everything

More and more property management personnel will be operating from mobile offices and their homes.

Tomorrow’s landlord clients will be increasingly attracted to ‘one stop shop’ type property management businesses.

They not only offer the basic leasing and management services but also offer other services such as: • Financial planning • ccounting • a minimisation • Legal and property conveyancing • nsurance • Finance The first players into this type of marketplace, providing they get the systems, pricing and human resource mix right, in my view, will dominate the

The key is systemisation. The system should manage the properties and the people should manage the system. possible through the use of technology.

This creates significant challenges for the property management software providers in ustralia who must improve their products to keep pace with the ever-changing face of the property management industry.

With a greater use of technology and automation it will be possible for property management businesses to manage more properties with the same level of staffing.

There will be a reducing need for street level (or shop front) type property management usinesses Landlords and tenants of the future will increasingly let the mouse on their computer do the walking – to search for a property, to communicate, to download information.

marketplace roperty owners will either not have, or not want to give, the time to search for these services from a myriad of different businesses.

It would not be surprising to see some big financial services organisations enter the world of property management in the future.

So my parting message for this article is systemise and service, or sink!

Bob Walters is the Managing Director of BWT, helping real estate agency owners maximise the performance of their property management businesses. For more information, visit www.bobwalters.com.au. | 53

plus

The

factor

We asked experienced rent roll broker Matt Ciallella to reveal the new factors that determine the multiple when you are buying or selling a rent roll.

O

ver the last few years, especially in the last 12 months, rent rolls in Sydney and NSW have been trading at consistent multiples. There has not been a rapid increase or decrease in multiples being achieved for the sale of the rent roll.

I get asked all the time, ‘What is a rent roll currently trading at?’ A rule of thumb for Sydney at least is: put a compass in the CBD and you achieve top dollar, that is $3.75/$3.80 per $1 of property management income. This is what

54 |

they have been selling for, unless it is a distressed sale or under receivership. As you start from the CBD you traditionally see the highest multiples for rent rolls; the further you go away from the CBD they slowly decline, depending on the average rent, average commission, multiple owners, vacancy rate and arrears rate.

These factors remain constant in determining the value of a rent roll. My counterparts or colleagues in other states of Australia are telling me the same. So what determines whether you achieve a

higher multiple when you sell your rent roll, or why should you pay a market price multiple or above market multiple when purchasing a rent roll? I’ll get to the answer to this in a moment; but for now lets look at the cycle that rent rolls follow which is similar to property markets from a supply and demand point of view.

As stock dries up for real estate agents and there are fewer properties on the market for sale, rent rolls dry up too.

As households feel the pinch and more properties become available on the market

due to economic forces, more rent rolls become available too.

An agency will sell a rent roll or business when they are ready to retire, pay down some debt, resolve a partnership dispute or want a change in lifestyle. However, as the property sales market gets tougher with more entrants, declining average sales commission and less stock on the market, an ageing principal looks to retire earlier if an heir to their succession is not apparent.

vacancy rate are slightly higher or there is on average higher multiple owners with properties. If that agent wants that rent roll as a strategic gain or addition to their existing rent roll, they will buy it.

Emotional purchases do exist; however, they are not the norm and rarely happen.

But it is important to note that sometimes you hear people say, ‘I heard such and such sold for $4.00’. It probably did, but it doesn’t mean that is the market.

If you want to sell your rent roll at an above-market multiplier, you must get the basics right. If you are looking to buy a rent roll and it is being offered at an above-market multiplier, then what basics need to be evident – and what else is in the rent roll that is making it so special?

You can’t change the average rent in your suburb or market overnight; however, you can clean up or get rid of low-average rental properties. Higher rents will achieve higher property management income per property per annum. It is harder to try and lift your average per cent commission across your rent roll in the short term.

Multiple owners with multiple properties attract more risk when selling and buying.

They normally have a lower commission attached to them; therefore if you have on average higher than 1.50 to 2.00 properties per owner and the property management income attached to these multiple owners is significant, then possibly expect a lower multiple or make your offer reflective of this risk.

Higher on average vacancies means the properties are harder to rent, and in a normal sale during a retention period (period of time determined to start or after the completion or first settlement

As stock dries up for real estate agents and there are fewer properties on the market for sale, rent rolls dry up too.

One revenue stream that remains constant, and some may say ‘recession proof’, is the property management income of the business. If this is well looked after, managed and employs best practice, it will achieve a market or higher than market multiple.

If a competitor or another agency has had their eye on a rent roll for quite some time and that rent roll or agency comes onto the market for sale, sometimes it doesn’t matter if the arrears or the

where an amount of the sale is set aside in trust until the expiry of this period) the purchaser does not pay for a vacant property. If it is still vacant at the end of the retention period then the purchaser does not pay at all if there is a newlysigned returned management agreement.

What are also important are low arrears, or more so important arrears greater than 28 days are non-existent. Also in a normal sale, a purchaser should not pay for a property that is in arrears greater than

28 days or under CTTT proceedings. So if these basics are not right across your rent roll, it could mean a loss of substantial income when settlement comes around.

In addition to getting the basics right, what will determine a higher multiple being achieved for your rent roll? Having a

You can’t change the average rent in your suburb or market overnight; however, you can clean up or get rid of low-average rental properties. higher than average commission rate is a great start, but as I stated earlier, you can’t change or lift this overnight. So what do you charge your owners as a standard fees and charges template? Do you charge half a week’s letting fee or a full week’s letting fee? Do you charge an Internet marketing advertising fee? If so, is this substantial?

So, in summary, what will get you a higher rent roll value, or why should you pay a higher multiplier for a rent roll?

• Higher average rent per week will lead to higher average income per property per annum • Lower vacancy rate and lower arrears • Fewer multiple owners per property will lead to a higher average commission rate • Higher sundry income with higher letting fees and advertising marketing fees, for example.

The businesses achieving a higher multiple or above-market multiple are those that have a significant income stream over and above the property management income.

Purchasers are willing to pay a premium if it can be disclosed that there are significant income streams other than the property management income that are recurring.

The better the sundry income, the more chance you can argue a higher multiplier and higher value for your rent roll.

mc rent roll broking is a specialised rent roll and business broking service for real estate agents, founded

by Matt Ciallella.

For more information, visit www.mcrentrollbroking.com.au. | 55

Split Personalities 56 |

There are few agents who haven’t expressed frustration at trying to find the right person to fill a position in property management. Finding someone who encapsulates all of the many qualities we seek from a property manager is not unlike the search for hen’s teeth. In fact, you almost need someone with a split personality. Story by David Taylor and Lisa Indge.

T

he problem stems back to the days when most property management departments were often limited to the suburb the agency resided in. The limitations of technology, rents paid or collected by hand, and a lack of mobility gave rise to an industry narrow in its focus and abilities. Consequently, most rent rolls were either much smaller (so therefore more easily managed) or run by agencies with many more staff (typists, clerks, and so on), on comparatively lower wages ‘who could handle each of the various roles that a property management department required.’

Added to this is the increase in legislation in which property managers are required to comply, including new Residential Tenancies Acts in many states over the last few years, the Smoke Alarms Act, Swimming Pools Act and so on, together with a move towards a more litigious society. This creates another

to be given higher status and therein the structure, training and development needed, based on the responsibilities required under the legislation, and let’s not forget the excellent revenue that can be generated.

This leads to an obligation to understand the skills required for each task within property management and, further, to develop an understanding of the personality types able to fulfil a variety of roles within a property management division.

PRODUCTIVITY AND PERSONALITIES The annual Macquarie Bank Residential Real Estate Benchmarking Survey puts the average workload per property manager at 99 properties under management.

To manage this portfolio, they will need to develop skills and attributes that, in psychometric terms, are often at odds with each other.

To help property management turn into a proper service industry, we need to free our property management staff from the chores they hate and let them focus on the tasks about which they’re passionate. dimension to the responsibilities of the agent as well as individual property managers. Smaller agencies with portfolio managers will no doubt find these compliance issues more difficult to manage.

Property management developed into a cottage industry and, for the most part, there it has stayed. We may have computers, iPads and fast cars, but we are still operating our property management departments as simple sources of income and often they are seen as a distraction from the main game of property sales.

Perhaps this is why agency principals expect so much of their property managers. To run as an efficient, effective and compliant business or business division, property management needs to be taken more seriously. It deserves

In 1928, William Marston outlined his DISC assessment model. It has been used extensively since by corporations large and small in an effort to better assess which personality types will do better or worse in certain jobs. In property management, the various roles can be separated into two distinct groups – those roles that must be performed and those that can be seen as value-added if the property manager has the time and/or the inclination.

Within each group, individual roles can be allocated to certain personality styles. In DISC terms these are: Directing Often related to sales and marketing roles Influencing Great for those with an aptitude for Customer Service | 57

Steady Well suited for those in operations roles Cautious Particularly good for those with a focus for fine details Amongst the roles that are considered a must, the Steady and Cautious traits account for almost all of the requirements, but two big areas related to the marketing of the property are poorly served – advertising the property and conducting the Open House. Some might argue that as long as the other areas are serviced well, these last two tasks are not essential to the maintenance of the business.

However, it is these two tasks that help set the very value basis of the rent roll.

Imagine, if you will, that you had a rent roll of 436 managements – the national average – and that you could, through well-written advertising and professional open homes, extract an additional weekly rent of just $10. Based on the Macquarie averages of 7.6 per cent fees and 2.9 multiple, this would lead to an increase in the value of your rent roll of almost $50,000!

If you then expand the property manager’s role to include those areas that should happen then the Steady and Cautious traits drop to half of those 58 |

needed and the Direct and Influencing traits take up the rest. Our major problem now lies in the challenge of finding an individual with all of these traits in the one personality! As many agents now realise, this just doesn’t happen.

What does happen is that agencies end up, at best, with property managers who are terrific at some things and barely average at others. Many licensees relate tales of inspections where entire rooms have been missed, property managers who refuse to do Open Houses or neglect to carry out periodical inspections or plan rent reviews. Even the tenants are dissatisfied to the extent that 47 per cent in a recent survey felt that their maintenance requests went unresolved.

Sadly, it’s this array of skill gaps that has led to patchy service and a consequent belief in the minds of some landlords that all property management is mediocre and, therefore, the only way to tell one agency from another is the size of their fees.

In an environment where too many property owners are considering selfmanagement, the secret to long term successful growth will be finding the right people for all of the jobs that property management requires.

FINDING THE RIGHT PEOPLE Even in very small agencies (less than 100 properties under management) some of the responsibilities get farmed out – trust accounting can be given to a bookkeeper or the accountant, for example. But most agencies, particularly those with less than 1,000 properties under management, operate a portfoliobased management structure where one property manager retains total control of the day-to-day operations of their portion of the rent roll.

This model, as with much of property management, stems from a structure built around an agency that grew from just one management. In time the rent roll would grow and a property manager would be hired to take care of that side of the business. After a bit more growth, the property manager would ask for help and a new person would be hired. And hence was begat the property officer – someone to whom could be delegated all of the nasty little tasks that the property manager hated. Better still was the leasing specialist who would drag themselves around to all of the Open Houses and be nice to all of those people poking their noses around the properties on a Saturday morning.

the agency’s commitment to service and professionalism.

It also provides the in-house team with a range of tasks and responsibilities that better suit their personality profiles. This leads to increased job satisfaction, which should also be evident to the landlords and tenants that the property manager deals with on a week-to-week basis.

Fundamentally, the way in which property management is conducted needs to change. While there are a few agencies that get it right with the portfolio model,

RESPONSIBILITY

Lisa Indge is the founder of a specialist property management company “Let’s Rent!”. Lisa has a wealth of experience as both a property manager and director of a thriving business. most agencies don’t. High staff turnover, management churn and landlords doing it themselves is evidence enough of that.

To help property management turn into a proper service industry, we need to free our property management staff from the chores they don’t like and are not good at and let them focus on the tasks about which they’re passionate. If we do, we’ll ultimately see an increase in tenant satisfaction, landlord satisfaction and, best of all, licensee satisfaction. And no split personality required!

Sales & Marketing

Customer Relations

Operations

Admin & Accounts

DIRECT

INFLUENCE

STEADY

CAUTIOUS

Advertise vacant properties

X

Conduct open homes

X

Review tenant applications MUST-DO TASKS

CHANGE FOR THE FUTURE Many agencies are now starting to embrace task-based structures as they are ideal for career progression, personality preferences, customer service and business productivity. But the challenge for smaller agencies is that the model works better the larger your rent roll, so until an agency reaches 1,500 properties under management, or more, then outsourcing can assist areas such as trust accounting, maintenance concierge services and inspections.

These tasks are easy enough to send out of the office as they are, for the most part, process-focused roles. This leaves in-house staff to concentrate on the areas of property management that require more finessed skills such as increasing the rent roll, marketing the properties and managing the landlord relationships.

Outsourcing provides agencies with enormous resources, as most external providers often have much larger teams for the agency to draw upon. In addition, their people are hired to be the specialists in their particular fields – especially important for areas like maintenance, inspections and trust accounting. This ensures that these ‘back end’ jobs get done in a way that supports and promotes

David Taylor is the managing director of National Property Systems. For more information, visit www. nationalpropertysystems.com.au.

X

Conduct lease signing

X

Conduct ingoing inspections

X

Deal with repair requests

X

Collect rent and chase arrears

X

Manage the trust account

X

Organise smoke alarm inspections

SHOULD-DO TASKS

However, the rent roll would keep growing and either the property officer would need a promotion and a new property officer hired, or a brand new property manager was brought in from outside. These are particularly good as they often attempt to bring over as many of their former landlords as possible from their former employers!

The problem we are now faced with revolves around staff retention. How do we keep the property management team motivated or, if we can’t, what do we do when one of them leaves? Motivation comes from a combination of satisfaction and purpose. If motivation can be built into each person’s position by focusing on the personality traits best suited to specific roles, then we should see both job satisfaction and employee retention rates dramatically improve.

X

Conduct periodical inspections

X

Conduct settling in inspection

X

Program rent reviews

X

Perform landlord account management

X

Grow the landlord list

X

Grow the management list

X

Liaise between sales and PM

X | 59

TOP PROPERTY MANAGER

Cyndi Ward RE/MAX GLADSTONE, QLD

Having been in the business for 23 years and won several top awards over that time, Cyndi Ward from RE/Max Gladstone is this months Leased1 Top Property Manager.

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OW LONG HAVE YOU BEEN IN REAL ESTATE? It seems like a lifetime ago, but I started immediately after finishing my senior year at high school. I’ll be entering my 23rd year in real estate in December. I obtained my Sales Certificate back in the days where you simply read a very small booklet and sat a multiple-question test in the local courthouse. I then completed the REIQ Superstar course which was a brilliant course for a beginner. I’ve studied more since then and became a fully licensed agent in 2005.

I didn’t intentionally choose property management as a career, but when I was looking for work fresh out of school I was lucky enough to be hired into this industry! I’d really wanted to work in the legal field but once I had a taste of

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property management I soon learnt it was way better for me. It has a lot of law and legislation, which I absolutely love learning and practising, but the other side, like relationships and the constant negotiating, is just so rewarding.

AS A PROPERTY MANAGER, WHAT ARE THE BIGGEST CHALLENGES THAT YOU FACE? I guess all careers come with challenges, but one of the biggest would have to be learning how to switch off and turn the brain off at 3am in the morning. It all comes to downloading before leaving work and having a plan for the following day. Working in the Gladstone market itself is a big challenge. Gladstone is an industrial town and is referred to by a lot of the locals as the

‘boom and bust’ town. When the market is leaping forwards tenants tend to see us property managers as the enemy, and then when the market is making an adjustment back the owners may be quite shocked at the quick adjustment. I find the best way to combat this is to ensure the owners and tenants are kept up-to-date with the market conditions, but it can still be challenging.

TELL US ABOUT SOME OF THE AWARDS THAT YOU HAVE WON? One of the first awards I received was an Exceptional Service Award based on nominations from the general public within our local region across all businesses. I was the subject of a secret shopper who played the role of a prospective landlord and had me come and appraise their home for rent.

I’ve been a finalist a couple of times with RE/ MAX Australia for Property Manager of the Year and winner of RE/MAX Australia Property Manager of the Year for 2011. I was also a finalist in the 2013 REIQ Awards for Excellence – Residential Property Manager of the Year.

WHAT DO YOU LOVE ABOUT PROPERTY MANAGEMENT? It’s just so diverse and never boring. You’re always dealing with different people, personalities and situations and I really enjoy getting a result. Some people may say ‘I have a problem’; I prefer to say ‘I have a challenge’, and there’s nothing more rewarding than getting a positive outcome on a challenge! I love the fact that I’m still working with clients from the early days of my career and the trust that they have for me. I love the negotiating and sometimes refer to my role as a ‘hostage negotiator’ more than a property manager.

WHAT IS UNIQUE ABOUT YOUR AGENCY? We’re a totally separate entity to the Sales business, although we all work together in the one office. I’m the managing director of the rental business and the licensee in charge. Our focus is 100 per cent property management; the majority of our growth has been through referral and we’re careful about what properties we take on. I’m a big believer in small things really making a difference, so in addition to running a more boutique-style agency with higher staff ratio to properties than the average office, we also run a monthly Owner and Tenant of the Month Award campaign. Each new tenant receives a welcome pack with the keys, filled with items for both adults and children to help them settle into their new home.

WHAT WAS THE MOST MEMORABLE PROPERTY YOU HAVE EVER MANAGED? I had a tenant who issued me with a breach notice for pollution in the air from a nearby industrial plant. She also stopped paying rent so I followed the usual steps: a breach for non-payment of rent and then a notice to leave. The tenant failed to pay the outstanding rent or leave the premises, so we ended up in Tribunal. The tenant’s argument to the magistrate was that she wasn’t paying rent until I remedied the

Gladstone is an industrial town and is referred to by a lot of the locals as the ‘boom and bust’ town. breach for the pollution. Long story short –a warrant of possession was executed, but this ended up being actioned on 24 December as per the police’s request. My colleagues at the time gave me grief for

ages for not having fixed the pollution problem and for being so mean as to have the tenant evicted on Christmas Eve. WHAT’S THE BEST ADVICE YOU’VE BEEN GIVEN? The two best pieces of advice I have been given are to treat others how you would

HOW DO YOU RELAX OUTSIDE REAL ESTATE? I’m raising a family with my very supportive husband; we have twins who are about to turn 19 and an eight year old with special needs. I read every day and find this a great way to unwind and put my brain into sleep mode. We all have motorbikes and I

“Make sure you have a great sense of humour with a side of broad shoulders!” like to be treated, and when dealing with conflict ensure you speak slowly, quietly, and stick to the facts.

WHAT ARE THE KEY FEATURES IN MAINTAINING HEALTHY RELATIONSHIPS WITH LANDLORDS AND TENANTS? I think this begins with communication and understanding the importance of building and keeping trust. If you say you are going to do something, then do it and more. We need to remember that property management is actually more about relationships than property. I also believe you need to understand the importance of attention to detail, and if you’re going to an owner or tenant with a problem ensure you also provide possible solutions.

DO YOU HAVE A MENTOR, OR SOMEONE THAT INSPIRES YOU? My biggest mentor is my absolutely amazing business partner Jeff Williams, who gave me an opportunity to enter a very new and small rental business and grow it my way. It’s been a wild ride, and while the challenges have been great I can easily say the rewards have been far greater. Jeff has allowed me to make my own mistakes and learn from them, but has guided me when needed; not by giving me answers but giving me information to allow me to find my own answers.

WHAT WOULD BE YOUR DREAM JOB, OR WHERE TO FROM HERE? I am really passionate about the general wellbeing of career property managers.

One day I’d love to become a Trainer or Consultant within the RE/MAX Group specifically relative to property management for this very reason. I am currently chairperson on the RE/MAX AIM Committee (Asset and Investment Managers) and I intend to keep putting my hand up for such roles within RE/MAX Australia.

absolutely love going riding on the weekends.

My eight year old and I also spend quality time together exploring in our kayak, which is our latest toy. On our last family holiday we all went on a cruise together and I cannot recommend enough this way of holidaying; it was the most relaxing holiday I’ve ever had.

IF YOU COULD INVITE ANY THREE PEOPLE TO YOUR DINNER PARTY, WHO WOULD IT BE AND WHY? I would invite Barack Obama as he’s very level-headed and appears to maintain control even in the most stressful situations.

I’d like to invite Billy Slater (Melbourne Storm) because, well, he would look really good at the table; and then I‘d also invite Prince Harry as he’s always having a good time but at the same time does so much good for humanity. Now in my opinion that would be a great dinner party!

WHAT DO YOU THINK THE INDUSTRY HAS IN STORE IN THE NEXT 12 MONTHS? I think we’ll see more investment in technology to ensure we become even more efficient and time smart. I also believe more boutique-style property management businesses with higher fee structures will do really well, with the possibility of homebased single manager style structures. I hope we’ll also see more agencies realise the importance of terminating owners who do not want to spend money on maintaining their investment properties; they are a litigation claim waiting to happen.

WHAT ADVICE WOULD YOU GIVE SOMEONE STARTING OUT IN PROPERTY MANAGEMENT? I’d suggest you familiarise yourself with all the relevant acts and legislation and continually attend quality training to increase your knowledge. When dealing with people always smile (even when on the telephone because your smile shows in your voice) and show empathy. Also make sure you have a great sense of humour with a side of broad shoulders. | 61

Leasing at a

premium Joel Fletcher, a senior property manager on the NSW Central Coast, says property management is not that different to sales when you’re in pursuit of a premium rental price for a management.

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roperty management, marketing and client service are my passions, and I consider being entrusted with a client’s asset a privilege. Not only do I strive to provide ‘red hot’ service to my landlords and tenants, I love my marketing to be spot on. And I believe that the same way that industry professionals advocate ‘vendor paid advertising’ in the Sales Department, in property management ‘landlord paid advertising’ will get a better result and should be the standard.

It’s a common first reaction when a property manager is appointed to let a home, or receives notice to vacate, to get the home on the market for rent. Due to their haste to do this we see so many property managers compromising on the quality of their marketing when it comes time to bring a rental property to the market. They may use only one photo, minimal advertising text or even no photos at all! Prospective tenants are frustrated by this. Not only does this affect the volume of enquiry generated, but it reduces the chance of securing the perfect tenant.

There are so many marketing tools available to property managers, from the use of professional photos, feature properties, exclusive showcase and social media to running an active (CRM) system. Getting your product and your brand noticed has never been easier. My key tools are social media and the use of a feature property, sending the listing viral and turning the letting into an event, not a process. Getting your stock famous is the key.

Research conducted by realestate.com.au shows that around 17 per cent of prospective tenants search past page three and only two per cent search past page nine.

So, unless you put in some focus, with such

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high volumes of property turning over in the marketplace your listing will quickly be out of sight and out of mind. Keep your product in the best possible position to reach your target audience.

Demonstrating the value in landlord paid advertising starts with the passion for your product; you need to believe it works. My belief hit an all-time high around four years ago when I visited an office on the Gold Coast. To me, this office was an industry

that people do business with people and, as John McGrath said in a recent interview, “real estate isn’t just about bricks, mortar and tiles; it’s about people”. Become a concierge service to prospective tenants, service their needs, shake their hand and build relationships with people.

I know there are many offices operating at the moment that pride themselves on client service and it’s great to see. We are a service industry and people appreciate it

Demonstrating the value in landlord paid advertising starts with the passion for your product; you need to believe it works. leader in rental marketing. That was the moment I knew it was time to change the way I operated and it’s now a standard part of everything I do. There’s nothing more impressive than walking into a listing presentation and telling a prospective landlord you’re excited about bringing their home to the market, and you have a marketing plan to get their home leased for maximum yield.

To achieve perfection I believe you need presence, perseverance and presentation.

Learn to be consistent with your marketing and profile; you will soon see the focus from prospective landlords shifting to your point of difference and not your fees. Let’s face it, if you demonstrate great value you deserve to be paid a great fee.

The next piece of the puzzle is your personal marketing. Get known in your area as someone who cares. Real estate is about people and the general public have a perception of a Property manager as ‘the big bad wolf’. This is not the way to gain a network of fans. We need to remember

more than you think. With the abundance of social media users today you will find someone sending your name viral for all the right reasons.

Property management is not all that complex. To me it’s all about maximising your landlord’s return and minimising their exposure to risk. By demonstrating the value of quality marketing you will achieve both at the same time. Real estate is an amazing industry with so many opportunities to create raving fans with your level of service, become noticed as a market leader in your area and generate unrivalled traction in your pursuit for rent roll and personal growth.

Joel Fletcher is the Senior Property Manager for the R&W Umina Beach office.

A passionate believer in client service, Joel is pushing the boundaries in conventional Property Management. For more information visit www.randwuminabeach.com.au.

BDM CORNER

Winning mindset Tara Milzewski discusses how mindset becomes a major contributing factor to the success of a BDM in Property Management.

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any business development managers will find themselves hitting a glass ceiling during their career, and from my experience it comes down to not having the right mindset.

What is the right mindset? I believe it is the mindset of a sales person who builds trust.

However, while I want you to think like a salesperson, I want you to remember to change your language away from ‘sales speak’ to natural language that allows you to connect with people. You should use phrases like ‘would you be open to…?’ instead of ‘would you be interested in…?’ which immediately set you apart from your competition as a BDM who is patient, open minded and willing to listen.

10. You must take pride in your personal presentation Keeping these ‘musts’ in mind will encourage you to think like a salesperson in all situations.

Securing new business has a lot to do with your persistence and your ability to adapt to this mindset. It is vital that you form a strong relationships with your prospective landlords, answer all questions and address all concerns.

Here are five ways that you can improve your mindset:

TEN MINDSET TRAITS OF SUCCESSFUL BDMS I believe highly successful BDMs understand the importance of their role and have a salesperson’s mindset.

To be the best, you need to know and appreciate the following 10 traits.

1. You must have enthusiasm for your role and the industry 2. You must be reliable 3. You must have high organisation skills 4. You must have industry and general knowledge 5. You must be honest 6. You must live a healthy lifestyle and take time out 7. You must be focused on your goals 8. You must be driven by success 9. You must have discipline, even on your most frustrating days

1. I know the ‘fear’ of perceiving yourself as a pushy sales person, and we all know that landlords do not want to be hassled. All you need to do is make contact once a week and give value added information. This is not being pushy.

2. Don’t forget to follow up your hot leads. I know you’ve probably made a note to do it later. But don’t let other property management issues get in the way because that follow-up call for the important lead becomes missed business.

Remember to treat your leads as a priority and don’t allow tasks that don’t fit into your ideal day to take over.

3. Don’t assume that if you don’t get a ‘yes’ in the beginning then the prospective landlord isn’t interested. I worked with a particular landlord for 18 months and finally converted him when

he decided he was fed up with poor communication. Never give up on a lead; you never know when they will be prepared to make a commitment or recommend you to a friend or family member.

4. Don’t assume the prospective landlord will call you back. I hear so many BDMs raving about how well they did during the listing presentation. Then I ask them when the last time was they spoke to the potential landlord and they can’t remember. You must have a task system

I believe highly successful BDMs understand the importance of their role and have a salesperson’s mindset. in place where you follow up your hot contacts on a regular basis.

5. Remember the power of persistence and make sure you have a detailed followup system. Once you start to build a large group of hot contacts, having detailed notes makes the follow-up calls so much easier, not only to continue to build relationships but also to convert them into secure business.

In closing, be the BDM that puts themself in their customer’s shoes and focuses on these aspects, with a positive mindset, and you will nearly always be successful!

Tara Milzewski is the founder and mentor at BDM Academy, for more information visit bdmacademy.com.au. | 63

PURPLE COW

DEDICATED TO BEING DIFFERENT

SHOULD YOU LOSE THE LOGO? Are you guilty of just handing over the bottle of corporate branded plonk when it’s time to say thank you to your owner or vendor? Editor Samantha McLean takes a look at the alternatives.

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et me start by saying I am all for sending a thank you gift to a customer once you have completed a transaction, along with a nice little handwritten thank you note, of course, that is both personal and heartfelt. It lets the client know you care, sets you apart from a crowd, and if you get it right creates a memorable moment for the recipient.

It’s hard to imagine any thank you gift going down like the proverbial lead balloon.

But in my initial research for this article I came across a piece on news.com.au from December 2012, which revealed most agents still get it wrong.

“Dodgy presents have included toilet paper, tool boxes, Christmas decorations, expired biscuits, kitsch salt grinders and other kitchenware – complete with corporate logos – and agency-labelled wine,” says the author. “In one instance, a buyer received a ‘one-year home warranty’ from their agent.”

What the… ? Let me see the fine print on that one!

The survey mentioned in the article also found that 32 per cent of those surveyed

So what makes a good gift? It’s more complicated than it looks. We live in a multicultural society where not everyone drinks a nice champers, not to mention diets and food allergies that make sweets a big no-no. I guess what I’m saying is that its horses for courses and the purpose of this column (both now and in the future) will be to bring you some new and fresh ideas on some of the more tired traditions.

So what makes a good gift? I asked our Facebook fans the question and the first response I received was – wait for it – ‘a machete’ (this from one of our good friends and past contributors, Tiron Manning).

That was unexpected. ‘A what?!’

“Actually,” he said, “The client said it was the most thoughtful and practical present he had ever received. They had just bought acreage with thickets of bamboo everywhere. A machete was the only tool that could do the job of clearing it. Therefore it’s not about the bubbles or chocolates, it really is the thought that counts.”

Here are the top five most ‘liked’ responses from our Facebook page (facebook.com/ soldmagazine).

“In one instance, a buyer received a ‘one-year home warranty’ from their agent.” received wine, 17 per cent a food hamper, and 12 per cent were given merchandise from their agent’s firm. Some of the less well-received thank you gifts included a picture of the house, framed and dated with the buyer’s name inscribed on a plaque, a chocolate house with hand-made chocolates, a stainless steel kitchen pasta drainer filled with food and a bottle of wine, tea towel and wooden spoon.”

Whatever happened to ‘It’s the thought that counts’? The trouble with the items that have been mentioned above is possibly that there is no real thought involved. The stuff with your logo on it is not about them; it’s about you.

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1. Voucher for Hire a Hubby was my trademark move-in thank you. Two hours to hang the paintings, change washers, general handyman stuff. For vendors we paid for cleaner to come, or weekly flowers during campaign. Both worked well – James Dawkins 2. Gift voucher from JB Hifi – Sue Walker 3. Scented candles and a gift voucher from a furniture shop – Lorna Angell 4. Dinner for two at my vendor’s favourite restaurant – Julie Rayner 5. A nice clock - what better way to be remembered, and a talking point for their friends! – Tania Ruki

While I think these are all great responses (and I have to say I particularly like the Hire a Hubby and the cleaner idea from James), here’s one I’d like to throw into the mix.

Get online to Kikki K or somewhere like that and order a bunch of ‘takeaway’ organisers (approx. $29.95). Next time you are letterbox dropping, duck into the local takeaways and restaurants and introduce yourself. Ask for a bunch of menus from each of them and make sure you tell them what you’re up to. Maybe go one step further and see if they will give you some discount vouchers. Then go back to the office and make up packs using the brochures, vouchers, and the nice folders.

You can bet that people who are moving are always going to need a takeaway menu or two. It’s a gift that’s practical and useful and allows you to build some great relationships with local businesses along the way. If you want to get really keen leave a couple of personal reviews as well, for example, “The salt and pepper squid at this place is amazing,” or “this one is great for the kids.”

Then leave your business card – that’s enough logo for any thank you gift!

Samantha McLean is the Managing Editor of Sold1. For more visit www.samanthamclean.com.

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