Your rent roll can sit on the sidelines and be an incidental revenue stream or it can be a stand alone business that generates significant profits and helps you thrive throughout uncertain economic times. 

By viewing your rent roll as a business of its own, you will give yourself and your team the chance to nurture it and experience measurable growth. 

To transform your rent roll into a more successful money-making machine, instead of employing a team of generalist property managers, create three new sub-departments. 

These specialist teams will include:

Leasing Agents, who have a focus on increasing the size and stability of your rent roll.

These agents can form relationships with property owners and renters, and take care of marketing, rental property inspections and client onboarding. 

A leasing agent may also take on the responsibility of prospecting for new listings - a task which can be assigned to a dedicated Business Development agent.

Leasing agents are also your secret weapon for referring potential vendors and buyers to your sales team. 

Asset Property Managers, with a focus on the day to day management of properties plus longer term asset upgrade projects. You can have your own team or outsource to an independent property management agency. 

When you have a separate property management team, you won’t have the problem of generalist property managers trying to juggle new client enquiries and open homes while also responding to emergencies. A dedicated property manager will have the breathing room to create systems and processes, which will make their life easier and their service more reliable. 

This team member can be the point of contact for property owners and can also liaise with them to discuss upgrading their property so they can improve its value. 

• Compliance (including COVID management). These individuals will be across the introduction of new legislation for rental properties as well as the challenges presented by COVID. Give them the task of ensuring the assets your agency manages meet legislative requirements.

Being proactive in this area makes sense. The penalties for failing to comply are significant. They include a name-and-shame ‘black list’ as well as potential fines for investment property owners and managing agencies. 

Administration. Have someone who is responsible for ensuring all paperwork is up to date and correct. It will be their job to check contracts/authorities have not expired, which can leave your business at risk (see more about the importance of administering the correct Authorities here). Your administrative team may also be able to find ways to increase efficiency, reduce costs and boost productivity across the board. 

The benefits of a stand alone rent roll ‘business’

Both property owners and renters often complain about property managers who are distracted and unreliable. Often, this is not because the individual they have assigned to them doesn’t care, it is because they are run off their feet, with more properties to manage than they have time for. 

The other common belief about property managers relates to a lack of genuine care when it comes to retaining asset value or looking after renters. You will often find people saying they feel as like an afterthought when compared to clients who are seeking to buy or sell property.

However, if your agency creates a clear distinction between sales and rent roll interactions, you immediately have a point of difference. By separating the property management side of your business into sub-departments, you’re demonstrating your commitment to providing quality service. You’re also creating a customer-for-life situation. 

With an increasing number of people expected to rent for the long term, the potential to grow a rent roll is strong. Treat your rent roll as a second business, ensure clients from renters to property owners receive five-star service and you will be able to expand your footprint and stand out from the crowd.

BDH Solutions are rent-roll agents with over 30 years experience in connecting the right vendor with the right purchaser. Download our information booklet on the new Victorian Minimum Living Standards Legislation