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Property Management PROFIT PLUS
| Date post: | 02-Jul-2015 |
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Property Management
PROFIT PLUS
Malcom Riley: In Brief
REIQ Committee Member 1999 – tocurrentREIQ Committee Chairman 2003-2005REIQ Property Manager of the Year forQueensland 2002REIQ Property Manager of the YearCairns 1999Accredited REIQ Trainer – Certificate4 Trainer and Assessor
Business owner for 25 yearsHad numerous articles published innationwide magazines
Ticked all
The Boxes
The vital steps to GROW
Growing your Rent Roll
Presented by Malcom Riley
Where are you NOW!
Take Stock of where you are NOW !!!
AUDIT TIME
SYSTEMSArrears SystemsRepairs and MaintenanceinvoicingRoutine InspectionsBond inspectionsVcat ProcessMid and EOM ProcessNew BusinessLeasing Officer Fees Increase
Computer HELP
BDO
Team Work
Key Step
Grade all your Clients - AB CD
Who wont do repairs etc
Grade all your Properties AB CD
Look at all the rents per property i.e. what is you cheapest rent
Where are all your properties located from the office
A B C D
Bond
Inspections
© REIQ 2004
53
Claim examplesMismanagement
• There are two allegations made by the tenant with respect to failure to maintain the property:
– Water tank - the tenant repeatedly asked the agency to check their concrete water tank as they will continuously running out of water. It transpired that the water tank actually had three cracks which caused seepage and cracks in the ground, resulting in the tenants elderly mother falling through the hole and injuring her leg.
– Rear veranda - the tenant had also repeatedly requested that the decking be repaired. Apparently the Property Manager advised the tenant that they would not replace the deck but simply have a maintenance man nail down the boards.
54
Claim examples – number 1
55
Claim examples – number 2
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Claim examples
Muir v Hume [2003] QSC 191Facts
• The tenant was injured when she tripped on a patch of worn and damagecarpet in the hallway of her rental property.
• She issued proceedings against the owner on the basis that she failed toensure that the premises were in good tenantable repair and fit for humanhabitation.
• The plaintiff had made numerous pre-incident complaints to theagent, who in turn, had passed them on to the owner (and had records tosupport this).
• The owner had also inspected the property on several occasions and wasaware of the hole. Her response was to lay a mat over the hole.
• Interestingly (and we consider appropriately), the plaintiff did not make aclaim against the managing agent.
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Claim examples
Muir v Hume [2003] QSC 191 (cont)
Held
• The Court upheld the plaintiffs claim.
• It said that the owner had sufficient opportunity to repair thehole, that merely placing a mat over it was itself a safetyhazard and that the cost to replace the carpet was notonerous (around $1,400).
• The plaintiff was awarded over $1.2 million.
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Claim examples
Mismanagement
• The allegation made by the claimant is that the Real Estate Agency accepted instructions from her former partner to rent the property without her authority and she is demanding 50% of all rental monies paid to date. (Property has been rented for over two years).
• The Property Manager originally responsible for the property has since resigned. There is a title search on file indicating both parties as owners, but for some reason the Property Manager did not pick that up at the time.
• The claimant is seeking $34,000 in compensation!
What Type of properties do you Manage ?
• Write this down
• How Many Houses ?
• How many units ?
• How old are they ?
• Identify your worst properties ?
• Properties that you spend most of your time
PROFIT
LOSS
Numbers Vs Profit
Where to Now
How many properties is coming in now ?
What can it be increased by
How many Appraisals are you doing ?
How many are you winning ?
How Many are you losing
Why did you lose them
Speak with the owners
CPPDSM4011A
List property for lease
CPPDSM4011A
List property for lease
CPPDSM4011A
List property for lease
CPPDSM4011A
List property for lease
CPPDSM4011A
List property for lease
CPPDSM4011A
List property for lease
Let Fee
• One day of inspections – 96.2 km
• 6 inspections – two no shows
• 2 applications
• Time -2hours 40 min
• 96.2km @72cents = $69.27
• One staff member $16 per hour $38.40
• Total $107.67 – no return
19 Smith St - $320pw
• 7 Inspections time took 3 hours 15 min =$50.40
• 56 km round trip x 7 inspections
• Total of 392km @72c = $282.24
• Process application Takes about 1 hour $16.00
• Total $348.64
• Loss of $28.64
• Not Counting the Condition Report or documentation
19 Smith St - $320pw
• One more inspection
• Total 8 inspection time 45 min = $57.60
• Another 56 km @72c = 448 = $322.56
• Total to rent this property $380.16
• Loss $60.16
Asset Managers
Management Fee
• 3 % of $320pw = $9.60pw
• 4% of $320pw = $12.80pw
Extras
Advertising
Internet – Window Cards
Processing Insurance Claims
Insurance Assessors
Renovated and Refurbs
Aon Insurance
Direct Connect
Spread SheetsTime = $$$$
Let Fees Rent Collection
ManagementFees
Lease Renewal Fee
PeriodicInspections
SIX MONTHS @$340PWLET FEE - $374
TWELVE MONTHS @$340PWLET FEE - $748
8.5 % - $826.54 8.5% - $1653.08
LEASE RENEWALS - $ LEASE RENEWAL - $55
PERIODIC INSPECTIONS - $44 PERIODIC INSPECTIONS - $88
TRIBUNAL HEARING - $ TRIBUNAL HEARING - $55
ADMIN FEE - $66 ADMIN FEE - $132
TOTAL $1310.54 -26 WEEKS TOTAL $2731.08 - 52 WEEKS
PER WEEK - $50.41
PER DAY - $7.20
PER WEEK - $52.52
PER DAY - $7.50
Target
• How Many do you want to grow by
• How Many staff will you need to put on
• What computers will you need - ipad
• What office space will you need
• How much furniture will you need
Structures
Portfolio
Pod
Tasking
Hybrid
Portfolio
Portfolio 1 100
Portfolio 2 100
Portfolio 3 80
Pod
Tasking
Hybrid
• Pm
• New Managements
Not Sure
• Arrears
• Rent Reviews
Not Sure• Leasing
• Repairs
Not Sure
You
Snr Pm
Ass Pm BDO
Recp
Admin
Natural
Growth
Promoted
Growth
Buying a
Rent Roll
Natural Growth
From a Sales Department
Alliance with a Sales Department
From your current Landlords and Tenants
Natural Growth
Personal Referrals
Developers - Private Landlords
Promoted Growth
Television
Radio
Newspapers and Magazines
Landlord and Tenant Nights
Points of Difference
Gifts
Client and Customer Service
New Listings
• Private Owners
• Letter Box Drops
• Door Knocking
• Buildings Under Construction
• Local Government
• Social Media
• BNI
• Advertise for Listings
• Letters to Absentee Owners
• Being Observant –Properties being Painted
• Cold Calling
• Relatives and Friends
New Listings
• Neighbours
• Clubs
• Church
• Walk ins
• Sporting Clubs
• Open For Inspections
• Referrals
• Repeat Business
• Website
• Internet
• Chamber of Commence
• Lions
• Rotary
Buying a Rent Roll
Buying a Rent Roll
Transfer of Records
Transfer of Keys – Remote Controls
Seek Experts Advice
File Notes
How Old are the properties
How Far Away are they
Condition reports
Buying a Rent Roll
Check Agreements 20a
Ratio Owners to Properties
Ratio Houses – Units
Location from Office
Last 12 mths income
Software System
Staffing
Data Base
Continue To Build
Focus
On
PropertyManagement
By Malcom RileyREIQ 2010
Property Management Power - You
can have it !!!!! Price: $95.00 PPM GROUP SPECIAL
$50.00
Receive Perfecting Property Management
for FREE !!!!
2 audio cds for
Learn how to obtain NEW
Business
Getting a point of
difference
Over coming Fees
Objections !!!!
TV and Telephone
• Between 2010 and 2013 analog free to air TV signal are being switched to Digital only signals
• More information on 1800 201013
• www.digitalready.gov.au
Risk Management
• Run the check list
Growing your Rent Roll
Presented by
Malcom Riley
