Throughout Australia and New Zealand a typical top 10% most profitable agency sales department comprises 10 personnel (6 principals sales agents with 4 support persons.)

Throughout Australia and New Zealand a typical top 10% most profitable agency sales department comprises 10 personnel (6 principals / sales agents with 4 support persons.)

This typical department averages a 35% operating surplus on every sale.


Throughout Australia and New Zealand the average expenditure on property management salaries, wages and commissions represents 49% of total property management income. The top 10% most profitable spend 44%; the bottom 10% spend 66%.


Many agency principals are seeing a measurable improvement in gross income when the business’s sales and property management departments combine their resources to meet the needs of their investor (landlord) clients.

Here are seven activities which will help to add significantly to gross income of the agency simply by taking advantage of the synergistic results produced when both departments operate harmoniously.

 (i)      Market Rent Review. Provide a written report to the investor (landlord) once every twelve months of the current rental value together with any suggestions regarding varying the rent.

 (ii)     Opinion of Value. Every twenty four months provide a one or two sentence opinion of the property’s current market value.

 (iii)    Investment Properties for Sale. Provide regular information / brochures on investment properties your agency has for sale.

 (iv)    Optimise Rental Return. Experienced investors understand that maintaining rents at 95% market value has a positive impact on vacancies, arrears, repairs / maintenance and delivers an optimum rental return.

 (v)     Minimise Vacancies. Provided a property is well presented / maintained and advertised where prospective tenants look to locate vacant properties (most commonly the internet and rental list) the asking rent of a vacant property should be reduced by 10% after ten days vacant.

 (vi)    Bi-annual Research. Conduct research of five (5%) percent of your investors (landlords) every month Feb – Nov (over two years).

 (vii)   VIP Invitations. Once a year treat your investors (landlords) as the VIP’s they are and invite them to a cocktail party, cinema night or investment seminar (Best Practice has a template PL94)

The Key to Success

Many of these activities require the co-operation of both sales and property management personnel. For best results appoint one person (only) to be responsible for departmental co-operation. 


Just over one half (53%) of all Australasian sales departments deduct a percentage of the sales commission (most commonly 10 – 15%) to cover intangible benefits (such as training, brand, market share, local reputation & culture) before splitting the commission with the sales agent.

Interestingly, 90% of the most profitable, market dominant agencies have adopted this practice.


A real estate agency's website is the most cost effective driver of local home owners to the business.

The agency's website is a pro-active driver of prospective clients. The telephone is a re-active point of contact for existing clients. 

Many market dominant agencies consider their website to be their most successful local marketing tool.

So What?

They ensure their agency's domain name appears with the telephone number in all advertising, marketing and promotional materials but the domain name IS THREE TIMES THE SIZE of the telephone number.


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