Can your skills as a property manager transfer to the country? It depends on where you go and what your goals are.
As a real estate agent and/or property manager in Australia, you may be looking to the regions for a tree-change of your own or the opportunity to expand your business.
This strategy can work well, but there are pros and cons to be aware of before you ‘go bush’.
Advantages of a regional rent roll
One of the biggest advantages of taking on a regional rent roll is of course the potential for increased income. By managing multiple properties in a country district, you can streamline your processes and reduce your costs, which can result in a higher profit margin. If the agents in the local area are long-established, they may have become complacent, which can open the door to you bringing some vitality to the service in the area and grabbing majority market share.
Communities tend to be strong in regional areas so if you can build a positive reputation, you should find you can rely on word of mouth to attract business. People are often less transient in country areas so you can probably rely on ongoing relationships as well.
The uniqueness of the destination where you operate can also play in your favour; you can tailor your services to meet the needs of the market, and show people you understand their requirements; for example if you are managing larger acreages.
Another benefit is the strength of regional rental yields in some areas right now. The pandemic had city-dwellers flocking to country areas and looking to rent before buying. If you can build a large rent roll, you have the potential to earn decent returns.
Finally, staff are less likely to demand top dollar in regional areas. Life tends to be cheaper in the country and jobs less plentiful. Find an area where there are plenty of people looking for work and you can avoid the trap of paying a premium.
Disadvantages of a regional rent roll
One of the biggest drawbacks of managing a regional rent roll is the potential for increased travel and time commitments. If you are managing properties across a large region, the geographic footprint may mean you need to travel significant distances to conduct inspections, handle maintenance requests and meet with renters/property owners. This can be time-consuming and may require you to hire additional property managers to be your people on the ground.
There is also a potential for a regional area to experience a downturn. As districts like Byron Bay have noticed, a rapid peak (e.g. during the pandemic) is often followed by a nose-dive in prices and appeal. However, you should be able to offset this by doing your research before you head to a regional area.
Factors to consider
Before you decide whether to take on a regional rent roll, it's important to consider a few key factors. For example:
Your current workload and capacity: Do you have the resources and staff to manage multiple properties across a large region?
Your experience and expertise: Are you familiar with the local market and the unique needs of renters and property owners in the area?
Your financial goals: How much income do you need to generate from managing a regional rent roll, and is it realistic given the potential costs and time commitments?
Infrastructure and investment in the area: Is it set to attract new residents? Look at things like education, healthcare and transport as indicators
The local competition: How well established are they and what is their reputation like?
Current number of vacancies and time taken to lease empty properties
Average rental yields
The local workforce and whether you will be able to hire to grow your team
Whether you plan to live in the area or manage a team based there from the city.
Ultimately, the decision to take on a regional rent roll as a property manager in Australia will depend on a range of factors, including your personal preferences and business goals. By carefully weighing the advantages and disadvantages, and considering your own capacity and resources, you can make an informed decision.
As with everything in real estate, it’s all about location, location, location. If you choose well, you can enjoy a fruitful experience as a regional property manager.