Many times when we have conducted Business Health Checks, we have found that what an agent say they charge is completely different from what is actually charged on their management agreements.

As a principal/manager it is your responsibility to ensure that department fees remain intact, and that persistent discounting is not prevalent without you being aware.

Take Action- all you need to do is go to your department filing cabinet, take out a selection of files that would contain management agreements and have a look at the fee structure that has been signed/agreed with the landlord. Don't forget to look at recent ones that have also been signed!

Any surprises? Has there been a bit of discounting that has occured?

What can be done about it?

Tip One- The principal/manager should be the only one to sign mangement agreements once completed/submitted by staff. This keeps them accountable to ensuring department income is not compromised.

Tip Two- if discounting is a problem, perhaps your staff need better sales skills to ensure they get a better deal and effectively overcome fee objections and use points of difference effectively. Click here for sales skills training.

Tip Three- know how to reverse this fee discounting cycle and increase fees back to what they should be, after the client is settled in. This works very well when done properly!

Strong cash flow is essential in any business, and the best operators protect their fee structure as vigilantly as possible! Property management can be difficult at the best of times! So why would you want to do this cheap?

As they say, it is better to manage 50 properties at $100,000 in fee revenue a year, than 100 properties with $100,000 in fee revenue a year!

What would you rather?

All the best! 

Need a Business Health Check?have your department closely examined by an expert who can show exactly what steps you need to take to be the best in your market place. We can show you where you are at now, where the best in Australia are, and a step-by-step action plan to take you there. Have you got what it takes? Click Here for more details and download a sample part report.