Working in estate agency practice is stressful. Best Practice has a research list of “stress busters” which help keep stress under control.
1. Don’t blow your top
Keep cool, don’t do something you’ll regret later. Sleep on it and respond the next day. You can measure a person’s self-esteem by how long it takes them to lose control and become angry.
Go for a good walk for a minimum of thirty minutes every second day.
3. Healthy Breakfast
Don’t skip breakfast. Avoid mid – meal snacks.
4. Mid – Day Break
Leave the office at lunch time and take a brisk walk.
Plan holidays and long weekends at least six months in advance. Involve your family.
Get six to eight hours sleep every night. Go to bed early the night after any late ones.
7. Sick – Stay Home
Don’t take your germs to work; stay home and recover.
8. Coffee, Sugar, Alcohol
Minimise your intake and plan to have every second day as an A.F.D. alcohol free day.
9. No Smoking
Listen to the message of the late Tasmanian Premier Jim Bacon who died at age 54 from lung cancer; DON’T SMOKE. If you do, seek professional help to stop. It is impossible to smoke and look intelligent at the same time.
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.