How: Different Will Impact Traditional Property Management: Tiffany Bowtell
If you missed the big announcement last week, property management company: Different declared a $ 25 million strategic partnership with the Commonwealth Bank of Australia (CBA).
While many avid readers Elite agent probably seeing the ad, I wonder how many real estate business owners have actually stopped and taken the time to think about what this could and will mean for the traditional property management agency.
As an industry consultant and premium outsourcing provider, I have worked with and helped streamline over 8,000 agencies over the past decade.
It is with this experience in mind that I think that agencies with a rent of 200 to 400 managers will be the most affected by this partnership.
Portfolios of this size are the most vulnerable in our industry and are either frequently bought out or likely to lose market share.
Most were landlord-initiated, which means they worked hard to secure the rent, but at a high personal cost and sacrifice.
On average, the staff-to-property ratio is around 1: 110, which means they don’t run in a simplified fashion or run at peak efficiency.
Staff turnover is often an issue for clients, who initially signed up because they wanted to deal with the business owner and felt like more than just a number.
The processes are generally clunky and made up of ad hoc technologies that have been introduced over time.
But one of the biggest challenges is overcoming the “that’s how we’ve always done it” mindset.
Helping agencies of this size is why I launched PMVA (Property Management Virtual Assistant), with the goal of helping them gain the edge they need to stay in business and be competitive, while also leveraging large-scale services, innovation and personalized advice without the cost. .
Our three main goals are to improve structure and processes, increase profitability and keep customers flexible and lean.
So the question this current announcement should ask you is, “How am I going to compete?” What do I need to improve and what do I really need to change to make my business sustainable during this next evolution in property management? “
The ad also went on to say that: Different will have access to the 15 million CBA customer base, which should make you wonder how many of your customers are funded through CBA and will now be introduced to: Different?
The bank’s goal will be to capitalize on this new relationship, which means that not only will you now be competing with large property management organizations, but you will also be evaluating new and existing business alongside one of the largest banks in Australia.
I know from experience that small and medium-sized agencies are the majority in our market. But I also know that with a little nudge in the right direction, they can compete with the bigger operators.
They just need to be prepared to focus on a more customer-centric model.
The truth is, if you’re going to compete with: Different, you’re going to have to act differently.
You’re going to need to find an advantage, a secret weapon, or a super power that will give you flexibility of scale without the price tag for cashed-in large-scale operators.