Pure Rentals Property Management Brisbane has just turned one

As investors what do you think will be the best option to market business?

  • 3 months free management

    Votes: 10 16.7%
  • Free professional photos and script package.

    Votes: 12 20.0%
  • Our Flat $1249 Management fees.

    Votes: 27 45.0%
  • Testimonials form happy investors.

    Votes: 14 23.3%
  • all of the above

    Votes: 17 28.3%
  • Other

    Votes: 4 6.7%

  • Total voters
    60
We are about to start marketing the business for new clients.

The First year we didn’t want to grow too fast and we are Current been using word of mouth and our website to attract new clients.

As an investor what do you think will be the best point to market on to attract new clients

thanks for any help and feedback
 
We are about to start marketing the business for new clients.

The First year we didn’t want to grow too fast and we are Current been using word of mouth and our website to attract new clients.

As an investor what do you think will be the best point to market on to attract new clients

thanks for any help and feedback

firstly congrats on making it to one, many new businesses do not!

there are three things that stick in my mind about your business, so i guess they are what i would find attractive in your marketing...

1. flat fees

2. You'll do minor jobs at inspection if you have the skills. eg changing a washer or screwing something back on.

moving forward this might not be a good marketing point. as you get more PMs they may not have the same skills as you. also, ones definition of very minor is different to another's "but you said you'd do minor repairs at inspections, why didn't you re tile the bathroom?"

maybe better to surprise. "we did the 3 month inspection and a washer needed changing. i had the necessary equipment so changed the washer"

3. did i mention flat fees

This think I is your strongest point of difference.

I'd like to see some sort of statement of what you do and don't do for the money. Usually i just get "we will manage your property for 7%+++". I'd much rather see "we will manage your property for x and will 1.<outline advertising, inspection and tenant selection> 2. collect rent, pay to your account every y. 3. conduct x monthly inspections 4. represent you at tribunal. 5. send out an sms at z days over due. breach at a days overdue. start eviction proceedings at b days overdue. etc etc.

How do you plan to market to LLs?
 
I just noticed your poll questions.

I wouldn't be offering 3 months free management. rather 'we will waive our fees for the period that your useless former agent holds you to agreement up to three months' - presume that is the main reason you are proposing this.

appealing to these people, i would add our notice period for termination is a low 2 weeks. It shows up front you are confident that you will not lose business because you are useless.

I would expect to pay for pics and copy writing. Many people do not appreciate good copy, but understand charging for good pics. So maybe just charge for pics, i presume you write the copy? Stress that these charges are one off and can be used for multiple leasing for many years, until the property changes significantly.
 
firstly congrats on making it to one, many new businesses do not

Thanks its been great. i took 2 years out of sales and working for some of the best agents in the area to get the knowledge i needed to open my doors. but im still surprised at how much i have learned and found out in the past 12 months.



2. You'll do minor jobs at inspection if you have the skills. eg changing a washer or screwing something back on.


moving forward this might not be a good marketing point. as you get more PMs they may not have the same skills as you. also, ones definition of very minor is different to another's "but you said you'd do minor repairs at inspections, why didn't you re tile the bathroom?"

maybe better to surprise. "we did the 3 month inspection and a washer needed changing. i had the necessary equipment so changed the washer"

This is not something I market but just a service i can do and makes sense im at the property i have the skills so why not do it. but realistically i will not be the PM for ever.

Im working on a way that i can offer this service and also changing the way my inspections are done. but not releasing it yet. until tested

3. did i mention flat fees

This think I is your strongest point of difference.

yes you did and what ever marketing i do will have this on it

I'd like to see some sort of statement of what you do and don't do for the money. Usually i just get "we will manage your property for 7%+++". I'd much rather see "we will manage your property for x and will 1.<outline advertising, inspection and tenant selection> 2. collect rent, pay to your account every y. 3. conduct x monthly inspections 4. represent you at tribunal. 5. send out an sms at z days over due. breach at a days overdue. start eviction proceedings at b days overdue. etc etc.

good point i have this in my new website and all of the above is in it as its the second question i get every time i speak to an owner.

How do you plan to market to LLs?

Mailouts and letter box drops are the norm and was thinking local paper.

but having the flat management fees I find that owners are coming to me and this is where testimonial are coming in handy as it shows its not all about the flat fees.

but the biggest thing I have learned over the past 12 months is About SEO
I now love talking to the so called experts about the best was to get rankings on google. and like testing them on there knowledge as i have found that most don't really know what they are talking about.

can wait to launch my new site.
 
I just noticed your poll questions.

I wouldn't be offering 3 months free management. rather 'we will waive our fees for the period that your useless former agent holds you to agreement up to three months' - presume that is the main reason you are proposing this.

yes i would rather take over the property now and manage it for free than leave it in the hands of property managers who are not working to maximize your returns.

appealing to these people, i would add our notice period for termination is a low 2 weeks. It shows up front you are confident that you will not lose business because you are useless.

we have a 7 day exit clause for all our clients.

I would expect to pay for pics and copy writing. Many people do not appreciate good copy, but understand charging for good pics. So maybe just charge for pics, i presume you write the copy? Stress that these charges are one off and can be used for multiple leasing for many years, until the property changes significantly

min standards on all my property are professorial photos and scripts.

helps me get a tenant faster. helps promote my business and gets a higher rent. it just makes sense to have this. with the scrips one of my staff has a double degree in English literature and journalism . so all scripts are of a good standard.

see link to current marketing Gordon st photos are getting refreshed when the property is vacant.

http://www.realestate.com.au/rent/by-dadtem/list-1
 
one of the things I learned when running a business is that if you are offering a higher value proposition, but price yourself below others, then you have a mismatch and people believe the pricing rather than the words.... ie dont discount a premium service.

you can even charge more, if you can explain why the customer should pay more. If people feel they are getting value, they are often willing to pay a higher price. but you must actually provide a better service, not just say that you do.
 
one of the things I learned when running a business is that if you are offering a higher value proposition, but price yourself below others, then you have a mismatch and people believe the pricing rather than the words.... ie dont discount a premium service.

you can even charge more, if you can explain why the customer should pay more. If people feel they are getting value, they are often willing to pay a higher price. but you must actually provide a better service, not just say that you do.

+1

What is your reason behind starting the business. If it is to make lots of money than offering free service is not going to help even if it is only for a few months.

Run your business at the lowest possible costs, provide premium service, charge market rates and your business will do well.

People will pay for quality whether it comes as a service or product. This is no secret, you just have to look at companies like Apple and Coke. Their products are the most expensive in the market in comparison to their competitors yet year after year they keep increasing their sales, recession or no recession.

Cheers,
Oracle.
 
Agree with Penny. I would be happy to pay 10% if you cover all maintenance stuff and call me only for major items like carpet change or AirCon replacement.
 
There is no difference about fixed fee.

The most importance is clear and prompt communication, service and attitude to help investor save cost.
 
Hi guys thanks for the feedback

To answer some of your questions.

I don't believe that i am discounting my services. you are right i could charge more for what i do.

Every agency in Australia is currently managing properties for less than the $1249pa we charge.

we could be like everyone else and charge 8.5% and i know our services are at a standard where my owners would be happy to pay this.

This is easily identified by the number of recommendations we have on this site and the number of referrals I get from current owners. Some below

http://somersoft.com/forums/showthread.php?t=77400

http://somersoft.com/forums/showthread.php?t=74784

http://somersoft.com/forums/showthread.php?t=75699

http://somersoft.com/forums/showthread.php?t=75635


I believe that a % fee structure for property management is not the way the industry should be regulated.

When I was working for a local agent one of the first properties I listed as a new management was rented for $800pw

The owner asked how much that was per week and after doing the sums had to tell them the weekly fee are $68 + GST per week.

The only part of my job I hated was telling owners how much our fees are as a dollar amount. Especially when I knew that we had owners on our books paying less than $20pw for the identical service. Felt this was dishonest and didn’t sit well with me.

Anyone that knows me will tell you I’m very honest and accountable for my actions and if I make a mistake I’m the first one to put their hand up and fix the issue normally at my cost.

I believe in the service standards we have and the fee structure is set to both give a high level service at a Price Point where everyone wins.

I think that with an asset worth what houses are worth service is the main reason people would change agencies and its show by the answers above.
 
You made me to look at the contract :)
Small correction. Management fee is 5.5%.
Statement fees ~$3.30 per statement.
Leasing fee ~ one week rent
 
8.5% is a lot high in Melbourne and probably in Sydney too. However, 8.5% is common in Brisbane. there is no much choice. My property in Melbourne is managed at 5%, too. So, management fee depends on the market.
 
When I owned my own real estate agency, one of the most effective marketing tools I used was a free period coupled with the lowest fee.

We went against all the big agencies (who in Canberra were charging 10% fees) - we launched with 5% management fees and first 3 months free.

We built our rent roll to 600 in less than 4 years, and sold the business a few months ago.

I think price coupled with amazing service and experience will always win.

I'm about to launch a new business (in my signature block), which will be offering all the tools that a property management department offers, but for $20 a month - and this is what I'll be pushing hard to the market.

Why pay a property manager, who spends on average 1 hour a month on your property? They generally don't have their own investments, or any real experience, and their hourly rate is in excess of $100 an hour!

It's ridiculous, and the industry needs to change - agencies have been making FAR too much money off landlords.

I digress ... push your price!
 
Why pay a property manager, who spends on average 1 hour a month on your property? They generally don't have their own investments, or any real experience, and their hourly rate is in excess of $100 an hour!


I like how you say that now that you've sold your very successful property management business!!!
 
I like how you say that now that you've sold your very successful property management business!!!

Business is business! I'm now in the position where I am a private landlord without an agency to look after my properties; so I've designed a business around managing my own properties.

The benefit is tapping into all the systems, processes, software, documents and support that a full real estate agency provides, but for $20 a month instead of $150+
 
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