A new form of leasing agency is on the rise, proving to be a potential threat to the traditional model of managed properties.
Known as leasing rights agencies, these can be found in large scale apartment complexes managed by companies like Meriton. With dozens or even hundreds of apartments, it makes sense to have a permanent on-site building manager, or even two or three.
As well as looking after the building and grounds, these managers are able to act as leasing and selling agents. Because they are on site, they make it easy for owners and tenants to sign up. They also sweeten the deal by putting together packages which include cleaners and quick access to amenities like internet and electricity.
Protecting your business
Using these types of agents gives residents a single port of call for their property management. It’s hard to deny this service makes sense when buying into one of the large apartment blocks springing up around the country.
Leasing rights agencies may impact your real estate agency’s rent roll if your footprint includes an area with a high density of self managed buildings.
Fortunately, you have some options to ensure you don’t miss out on your slice of the leasing pie.
Firstly, offer a service which makes coming to you worth landlords’ while. This may include cheaper rates, discounts on things like fire alarm checks or free listings when apartments become vacant. This may cost you in the short term but can help to foster a more long term client base, which will pay off and increase the value of your rent roll.
You could also create a premium package which includes personalised, concierge-style service, guaranteed response times and discounts from local tradespeople and cleaners. This could be a worthy strategy in a high income area where people are looking for convenience.
Remind landlords considering enlisting your services how you can give them the advantage by providing ongoing advice on their property investment journey. This detailed real estate knowledge is something the big complexes are unlikely to offer.
If you can’t beat them…
Join them! Consider creating an arm of your business specialising in large complex tenant management. This makes sense as your agency already has the property management skills and processes in place.
When offering your services to the building manager, explain how outsourcing can save them time and allow them to get on with more profitable tasks - like selling apartments.
Putting a strategy in place to offset the impact of leasing rights agency will give you a better chance of maintaining your rent roll for the long term.
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