Unfortunately most department and property managers see that any new business is good enough and take on anything with a 'roof and front door' without any thought as to the management value to the business.

Taking on a property that just attracts a certain type of low quality tenant, one that has a high chance of tenancy failure and difficulty could be multi-story flats/units, former government housing or some other type of property.

Without suitable new business benchmarking, over time we have the potential to build a rent roll with a 10-20% erosion factor, being properties that will increase your staff burnout rate as the difficulty to manage these type properties increases significantly compared with better quality properties. These properties will also have low rents which also means low income and low profitability.

Action- print off your property list, and together with property managers identify properties that are of a certain type that seems to just attract a lower quality tenant.

What can you do? For every 2-3 quality properties signed up remove one property identified from the rent roll, or even encourage the landlord to sell and upgrade to a better property.

Don't forget to educate your sales team on what business you can take on, and what needs to be avoided for the rental department.

Try make this a win for the landlord, and definately a win for your property managers making their job just that bit better and keeping them longer.

Let us identify the erosion factor in your business and create a plan for profitability and success!

It all starts with a detailed Business Performance Health Check