Oct 19, 2021
Traditionally residential property management departments have relied on property managers (PM’s) to generate new business and develop rent rolls. However, the expectation of busy PM’s to handle business development (BD) as part of their property management role has not always been a workable model given that sales acumen requires a completely different set of skills and the majority of PM's have never been very commission driven.
A growing number of business owners in South Australia are concluding that PM's and BD personnel utilise completely different skill sets. In the past 5 years, we have seen a trend in real estate agencies hiring separate BD or leasing consultants to handle this part of their business. These positions tend to be much more bonus-driven with a strong focus on growth and maximizing opportunity through both new and existing clients.
Interestingly, 67.5% of all property managers surveyed this year earned bonuses (includes junior, senior property managers). Of those:
- 89% were from generating new business
- 14% were from retaining existing clients
- 43% from referring clients to another area of the business
- 21% from discretionary bonus
*note that more than one response could be selected
It will be interesting to see if this trend continues to gain strength and more and more BD will be taken out of the hands of property managers going forward.
Senior Property Manager (3+ years' experience)
Property Manager (up to 3 years' experience)