In the real estate market

ishanijerin1@gm

It is not uncommon to hear that working with property rentals is the same as working with problems. For this reason, many real estate agencies are still reluctant to work only with sales, given the number of “problems” that arise on a daily basis and the “low return” that the management fee brings to their business.

However, with the crisis that the real estate sector faced in 2015 belize telegram data and 2016, many real estate agencies that survived this period were precisely those that worked with property rentals. In view of this, those who did not work with rentals turned their attention to this very important activity within a real estate agency that can bring:

Revenue;
New customers;
New Properties;
Secondary income (Fire insurance commission, capitalization bond, surety bond, etc.);
New business
After more than 30 years of operating in the real estate market and with thousands of real estate agencies using our solutions (real estate agencies of all sizes and locations), we were able to identify a pattern between real estate agencies that are successful and real estate agencies that have difficulty managing properties.

In this post we will share the main characteristics that successful real estate agencies have in common.

Property Rental: “The Ugly Duckling”
The property rental sector has always been seen as the “ugly duckling” of the real estate market. For this reason, many real estate agencies choose not to work with rentals and, if they do, they do not give it the attention it deserves. Some of the reasons are:

It's problematic
It takes a lot of time
Lots of bureaucracy
Small commission compared to the sale
Complex process
It requires a lot of knowledge
However, with the decline in the market for new and individual property sales, most of the real estate agencies that survived the crisis were precisely those that had a solid portfolio and knew how to work with rental property management . Those that did not have this focus certainly opened their eyes and began to move towards this activity.

Property management is for professionals
managing-rental-properties-and-for-professionals

Due to the difficulties mentioned above, we can see that managing properties with excellence is a matter for professionals and not for amateurs. I say this because it is an extremely complex activity, which requires a lot of knowledge and information management so that you don't end up getting lost in the process and going crazy.

The professional who ventures into working with rentals must be willing and aware that he will deal with problems  every day . After all, this is the main reason why the owner pays the real estate agency to take care of his property. If it were easy, there probably wouldn't be any real estate agencies to manage property rentals.

Banner for Posts

So, here are some tips:

Be thankful every day that these problems exist. If it weren’t for them, your client wouldn’t need you.
Learn how to deal with these problems.
Assemble a team with attitude and proactivity, whether it is two or fifteen people.
Have an organized work process to handle growth.
Be patient, as renting properties brings long-term returns. What is worthwhile is the sum of the commissions (volume) and the recurrence.
This image illustrates very well what outsiders think it is like to manage a property and what it really is like. Only those who have lived in the world of rentals know how difficult and complex it is.

How to organize the property rental process ?
By conducting a study of thousands of real estate agencies of all sizes and locations in Brazil, we realized that they all have a very similar standard for working with property rentals. This standard is divided into two phases:

1st Phase: Commercial (Rental intermediation)
In this first stage, which is the commercial part, activities with a strictly commercial vocation are concentrated, such as:

Acquisition of properties  reconciling quantity (volume) and quality;
Advertising  of properties on the website, portals, signs and other means used by the real estate agency;
Provide  assistance  by telephone, email, online chat or in person, showing available properties based on the client's profile;
Schedule  key lending or visits  with clients to selected properties and, after the visits, gather their opinions;
Negotiate  proposals ;
Understand customer feedback and pass on  feedback to the property owner ;
Collect the necessary documentation from the client and carry out the  registration analysis ;
Signing of the lease agreement and inspection (Closing the deal).
Understand that the “backbone” of this stage is nothing more than a  Sales Funnel . In other words, the commercial part ends when the property is rented and the contract is signed. This entire process is quite similar to the sale itself, with the difference that here the property management begins:

Download the Sales Funnel Ebook to increase your rentals now

2nd Phase: Contract Administration
With the lease agreement duly signed, we move on to the second part, which is contract administration. This phase focuses on activities with a more administrative focus, such as:

Issuing receipts or bills;
Rent collection;
IRRF calculations;
Monitoring of rental charges (water, electricity, condominium, property tax, etc.);
Rent transfer;
Fire Insurance;
Management of Rental Guarantees;
Resolve complaints and problems with the property;
Issuance of invoices;
DIMOB;
Income Statement;
Adjustments;
Renewals;
Terminations;
Between others;
Finally, the list above shows how much work property management involves. There are many activities and without the use of a  management system,  it is very difficult to manage all these variables efficiently and efficiently.