Growth navigator 2014

Growth requires determination, and fortitude to go the distance when many “helpful people” keep telling you that you don’t have a problem so why change! So why would you Grow your business!

“There are no such things as limits to growth, because there are no limits to the human capacity for intelligence, imagination, and wonder.” ~ Ronald Reagan

“By prevailing over all obstacles and distractions, one may unfailingly arrive at his chosen goal or destination.” ~ Christopher Columbus

Which way is your compass heading?

Have you chosen the course; or are you being guided by someone else?

Chapter 1 - The Growth and Success of your Business

Copy Right Deborah Mitchell All Rights Reservedwww.deborahmitchell.com.au

Are you aware that your Property Management Portfolio is your ASSET? If managed correctly the value of this asset is phenomenal….If you allow your Sales Team to sell your asset, who earns the instant money and who loses the long term earning capacity from your asset. You receive a small portion from each sale after the Sales Team Member is given their commission and if you are part of a Franchise; head office also takes their commission and you keep what’s left.

“The only way that we can live is if we grow. The only way that we can grow is if we change. The only way that we can change is if we learn. The only way we can learn is if we are exposed. And the only way that we can become exposed is if we throw ourselves out into the open. Do it. Throw yourself.” ~ C. Joy Bell C.

You can - if managed correctly - build your Property Management Department by natural growth rather than purchasing a rent roll, or with time you’re current Investors/Property Owners purchase extra properties and recommend your company.

By managing your Investors/Property Owners correctly and ensuring that they have a great experience through your Property Management Team, you will develop a trusted relationship with Investors/Property Owners, and they will in turn trust your team when advice is offered.

I hope you have the courage to keep reading as I intend to cause you to be “DISTURBED or at the very least DISCOMFORT.”


Over the years Principals have predominately come from a Sales background and have little to no knowledge of Property Management. Thus leaving them vulnerable to Property Managers, who may not be the right person for the position.

How do you take charge? By taking ownership!

Easy No!

Essential Yes!

Have courage and your potential Return on Income can be substantially increased – thus maximising the income for your office if you can improve on:

Operational Due Diligence Determining Risk Factor

Profitability by improving efficiencies Assess real Value of YOUR Business Prognosis Determining Operational Level

Focusing on Immediate attentionwhere short comings are noted

Efficient workplace Practices Growth by Natural Means Agent of Choice in Your Market Area Retention of Managements Retention of Staff


To form change within your Agency as Principal, are you willing to make the changes yourself? You need to believe in your business and manage your team properly. By leading your team efficiently, your team will buy into the changes and take ownership.

Where to start? First you need to answer some questions to determine how much change you need. You may find you have the basics down, but need adjustments, such as increasing productivity by managing - and I mean REALLY managing your team. You may find that in turn you can reduce overheads! How? Call me to conduct a thorough diagnostic report on your Property Management Software Program.

Or you may find that your own knowledge of correct Property Management procedures is lacking and you need an overhaul. This is a standard issue with so many Principals and can easily be corrected with proper training.

You need not share your answers with your team, but do ask your team the questions.

First, have an idea of the answers they should be able to give you.


Here are some questions you might like to ponder.

Do you want to be the Agent of Choice in your market area? Have you given this some thought? Does your current team know their market area? Do you offer staff training? What is the Culture within your Property Management Team?

Do you know how many rental properties do you currently manage? I mean REALLY manage. Not just what YOU’RE being told that you manage; or what the Property Management software program is showing. Remember that this is only as accurate as the data that has been logged.

The exact number of managements_______________

Have you actually spoken with some of the Investors/Property Owners why they are taking their properties elsewhere?

How often does your team call your Investors/Property Owners to say, “Hello just calling to let you know ……………..” we call these good will calls.


Are your team members just calling Investors/Property Owners when something is needed?

Do you know how often your Property Management Team members are conducting routine property assessments/inspections; every 13 to 17 weeks, or every 26 week? Why do you do the inspections in this period why not another?

Do you know if the Property Management team are collecting the Letting fee from the Investor/Property Owner for a lease break, or are the takingthis from the tenant?

Do you know if the Break Lease Fee is being collected and re-imbursed to the Investor/Property Owner?

Do you know if the Investors/Property Owners are paying the rightmanagement fees as per the agreement?

If you are like so many Principals you may have answered “NO” to several of these simple but important questions.

Yet, there are many more questions you should know the answer to; or at least know how to obtain the answers. As the business owner you should be aware as to how your business is being conducted on your behalf.

If your Property Management team is actually running at a profit, if the service commitment is being delivered as per agreement and if the overall risk to YOUR business is LOW RISK or HIGH RISK.

All of this and more…………… leads to Retention of Managements which leads to happier Investors/Property Owners, which leads to profitable Agency in turn you could be offering your Property Managers incentives to keep their new found performance level ongoing, and then loving going to work everyday


Chapter 2 - Transfer & Transition – Sale & Purchase of a Rent Roll

Transition is the period of time taken from prior first settlement to final settlement. This process is monitored and heavily processed to protect all parties concerned.

Many Principals have taken part in this process without full knowledge of the state of play within either their own agency which is being sold or in the agency to which they are looking at purchasing. Why?

As they have relied on others offering information to be complete and through Due Diligent Report on the business.

For most Principals this process is either fraught with monetary danger as they rely on others who have not audited every report available through their Property Management Software Program thoroughly to ascertain the state of their business.

Prior to instigating the transfer of your property management asset, why not invest in a specialist that would peel back the layers of your property management department locate the source of issues then prescribe what specific action is required to repair the issues. Allowing you to reap the reward and gaining Premium Return on Investment from the time and money which YOU have invested into your business during its operation.

Can you name the layers?


By probing into each and every layer of your property management department, starting with the computer software program and working outwards, we can ascertain how much work is required if any or if you need to re-focus your efforts and re align your property management team with your processors and policies.

By undertaking a complete Diagnostic Report of your system prior to any sale of your asset you then control the process and have absolute faith in the asking price.

By utilising a Growth Navigator for all aspects of YOUR business the potential to increase your Return on Investment added benefit the Principal purchasing the managements – Transfer will gain retention of the Managements during the Transition period so you GAIN financially because potentially many of the managements will stay during settlement period and long after.

This service is less than the cost of 1 management, which is being sold, but has the potential to reap so is much more, allowing you to take full advantage of your return on YOUR asset which you have built.


How do I help you to NAVIGATE through this maze of GROWTH?

Initially I will conduct a detailed comprehensive diagnostic report completed from your Property Management Software, collect the material or evidence then present you with a Prognosis. This will enable you to create a Property Management Business of YOUR design.

Followed by one-on-one meetings with each individual staff member

I will also explain how you can access world standard resources that will help you measure and manage the performance of your Property Management Team and their service standards.

The resources to which you will have access have been tested and proven to be effective management tools. This enables you as Principal to recruit your own team by design.

You will be provided with systemised processes that will enable you to monitor and measure the work load of each individual team member. Imagine the difference that this will make. Proactive management no more Reactive Management - which is in fact Crisis Management! This actually costs your business in the long term by damaging your brand & reputation and increases overheads.

I will help you create and implement the below strategies and tactics that will not only create a happier work environment, but ensure that you are an Agency of Choice:

Weekly navigator – guiding each Property Manager on how to utilise their work week more efficiently Uniformed letters – no more wasted time trying to create letters which are poorly spelt or have poor grammar Uniformed practices – every task, every work, every piece of advice is consistent Key Performance Indicator’s which actually measure what tasks Property Managers are to complete daily / weekly / monthly / yearly Vehicle sharing system

Chapter 3 - Growth Navigator


6 Quick Tips ~ Here are a few quick tips on how you examine and manage risk within your Agency.

Tip 1. Print off the following reports

Step 1: In your Property Management Software Program print off the listed properties that you manage.

Step 1a: Compare the numbers from this list to the number of property files stored…... Is there a difference?

Step 2: In your Property Management Software Program print off the lease renewals report;

Step 3: In your Property Management Software Program print off the rent review report;

Step 3a: How many properties are on periodic Leases?

Note:

By increasing the rents, the business will increase the collected Rent Commission. Are you charging the Investor/Property Owner a Lease renewal fee?

Tip 2: Upon receiving the signed termination documents, you need to follow these steps:

Step 1: Contact Investor/Property Owner to advise of tenants intention to vacate early and what the tenants obligations are.

Step 2: Create Invoice to cover the Advertising charges that the tenant is responsible for.

Step 3: Ensure that all monies owed by the tenant are paid prior the bond being finalised.

Note:

When the current tenants are breaking their leases; are they being charged a break lease fee which is re-imbursed back to the Investor/Property Owner? Are they being charged advertising fee?


Tip 3: Proper management of keys saves time and money.

Step 1: Colour code keys as-soon-as they initially arrive within the office.

Step 2: Photocopy the keys at this point and have them signed in by Investor/Property Owner for future reference.

Step 3: Ensure that the receptionist understands no keys leave the office without someone signing for them out of the office and upon being returned to the office.

Note:

Keys are one constant source of angst and continual expense to the Property Management Department. Lost, misplaced, or broken to not having enough keys for the tenants or office.

Tip 4: What cannot be managed cannot be measured!

I know we all say it, but how many of us actually do this. You need to be auditing each task that is required by your Property Management team to complete as part of their role and service to clients.

Note:

Schedule the time the vehicle is away for the office. One Property Manager is out of the office and one Property Manager in the office. Weekly auditing process helps keep track of tasks so nothing is missed. No Lost Notices, no surprise fuel bills and no missing Property Managers.

Tip 5: Time Management is your friend.

Most people struggle with Time Management. Property Managers drop everything to speak to everyone and anyone. Therefore how do they complete each task that they are responsible for?


Note:

Weekly navigators are essential & work for everyone, this discipline is a must for each team member so that their day is managed and daily tasks are completed on schedule.

Re- educate Investors/Property Owners; Tenants; Trades people that your Property Managers will return calls or emails at set times during each day. Emergencies are the exception of course.

Tip 6: Rent is the responsibility of every tenant.

Step 1: A text message to let tenants know that they are 3 days in arrears should be standard practice. As it lets them know that you are monitoring all payments, and that arrears are not acceptable.

Step 2: A phone call on day 4 - 7 to find out when payment will be made, or if there is an issue and can the property manager be of assistance.

Step 3: A notice to remedy breach must be sent on day 8. If this is not remedied – by making full payment only – there are options (laid out in step 4).

Step 4: Issue another Notice to remedy breach OR seek instruction from Investor/Property Owner to issue notice to leave.

Note:

Does your Property Management Team have a zero tolerance to rent arrears? This is lost income to the office. Has your PropertyManagement Team sought permission from Investors/Property Owners to place tenants on payment plans?

Copy Right Deborah Mitchell All Rights Reserved www.deborahmitchell.com.au

When team members move on often new team members are employed. If trained by current staff, bad habits are passed on. However, if trained by a certified consultant, there is no possibility of this occurring.

Do YOU want stability with growth? Or just to stabilise YOUR current property management team and build retention of managements? Or do YOU want future stability with growth?

Do YOU have the courage to engage my services to ascertain the extent of your issues or to verify that your team is performing in accordance with YOUR policies and processes, utilising all the materials that YOU have provided? Are your staff helping to develop YOUR business using YOUR Design Blueprint or are they doing what they want?

Coffee and conversation sometimes takes courage, are you game?

Strive to define your deep inner values and start making them a reality. Start moving towards your cherished goal. Every step forward will open new horizons. ~ Anil Sinha

Copy Right Deborah Mitchell All Rights Reserved www.deborahmitchell.com.au

Growth navigator 2014

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