PER­CEP­TIONS OF PROP­ERTY MAN­AGERS

Kylie Davis

Elite Property Manager - - CONTENTS - KYLIE DAVIS is the CEO of Real Con­tent and the au­thor of the Per­cep­tions of Prop­erty Man­agers re­port. For more in­for­ma­tion visit kyliec­davis.com.au.

THE PER­CEP­TIONS OF Prop­erty Man­agers re­port ex­am­ines the qual­ity of ser­vice land­lords and ten­ants re­ceive from agents. The find­ings re­veal that most land­lords have re­ceived good ser­vice but there is plenty of room for im­prove­ment. Kylie Davis of Real Con­tent ex­am­ines the find­ings.

The lat­est Per­cep­tions of Prop­erty Man­agers re­port ex­am­ines the qual­ity of ser­vice land­lords and ten­ants re­ceive from agents. It found that while the ma­jor­ity of land­lords – 56 per cent – re­ceived good or ex­cel­lent ser­vice from their prop­erty man­agers, 16 per cent of land­lords ex­pe­ri­enced poor ser­vice and an ad­di­tional 28 per cent re­ceived av­er­age ser­vice.

Ten­ants re­ported an even worse time of it, with 23 per cent stat­ing their ex­pe­ri­ence was poor and an ad­di­tional 32 per cent claim­ing it was av­er­age – a to­tal of 55 per cent ex­pe­ri­enc­ing sub­stan­dard ser­vice. Only 35 per cent of ten­ants ex­pe­ri­ence was good or ex­cel­lent ser­vice.

There is a dis­tinct hi­er­ar­chy across the in­dus­try, where sellers are most likely to re­ceive the best ser­vice (31 per cent), fol­lowed by land­lords (16 per cent), then buy­ers and ten­ants equal on just 14 per cent re­ceiv­ing ex­cel­lent ser­vice.

I hear you say­ing, ‘Agents get paid to ser­vice sellers and land­lords. We’re just putting the ef­fort where the money is.’ And that is true. But the de­gree of these ex­pe­ri­ences pro­vides use­ful in­sights into where our vul­ner­a­bil­i­ties lie as an in­dus­try and how much money we are throw­ing away.

THE FIG­URES

Ac­cord­ing to CoreLogic, the value of res­i­den­tial prop­erty is $7.6 tril­lion, of which the ABS tell us 31 per cent – or 3.1 mil­lion prop­er­ties – are rented.

De­spite this, 44 per cent of land­lords are ques­tion­ing why they’re pay­ing for ser­vices that are sub­stan­dard in an in­dus­try that is be­ing dis­rupted by star­tups.

44%

OF LAND­LORDS ARE QUES­TION­ING WHY THEY’RE PAY­ING FOR SER­VICES THAT ARE SUB­STAN­DARD IN AN IN­DUS­TRY THAT IS BE­ING DIS­RUPTED BY STAR­TUPS.

Based on a me­dian rent of $429 per week and a five per cent com­mis­sion level, that’s a $3.5 bil­lion com­mis­sion pool an­nu­ally for prop­erty man­agers. If we ap­ply the de­gree of dis­sat­is­fac­tion of land­lords to these num­bers, we dis­cover that $560m an­nu­ally in rental com­mis­sions are ac­tively look­ing to walk out the door, fol­lowed by an ad­di­tional $980m from those who ex­pe­ri­enced av­er­age ser­vice and would be will­ing to con­sider an al­ter­na­tive.

When land­lords were asked if they would use the agency who man­ages their prop­erty to sell it when the time came, only 28 per cent said yes, def­i­nitely. The re­search shows 39 per cent said they would def­i­nitely not use their manag­ing agency, while 33 per cent were on the fence.

Ten­ants were even more scathing, with 31 per cent stat­ing they would never sell through their agency and 62 per cent say­ing they would never rec­om­mend their agency.

WHY TEN­ANTS ARE IM­POR­TANT

The ten­ancy per­cep­tion is im­por­tant when we look at the pri­mary rea­son why a land­lord will choose an agent. The sur­vey shows that 34 per cent of land­lords chose their agent be­cause of their ac­cess to ten­ants. Take away that ten­ant ac­cess due to rep­u­ta­tional is­sues, and the in­dus­try takes a hit.

Both land­lords and ten­ants want prop­erty man­agers to be proac­tive, have good com­mu­ni­ca­tion skills, be prompt in their re­sponse times, be hon­est and trust­wor­thy, and most of all re­li­able – and there is huge up­side for the agen­cies that man­age to crush it.

The re­search found that 38 per cent of land­lords used the agency they bought their prop­erty through to man­age it, with a fur­ther 38 per cent in­ter­view­ing just one agent when mak­ing the de­ci­sion to rent out their prop­erty. This shows that, for more than a third of the in­vestor mar­ket, land­lords are trust­ing those they are pur­chas­ing from and ex­pect­ing an on­go­ing re­la­tion­ship. It’s time to de­liver on that prom­ise.

ONLY 35% OF TEN­ANTS EX­PE­RI­ENCED GOOD OR EX­CEL­LENT SER­VICE.

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