Coffee with James Session 7: Asset Management: The future of rental property management

Professional rental property managers have been an important part of the property investment landscape for as long as most of us can remember. Landlords have long relied on these experts to shoulder the day-to-day demands and intricacies of keeping tenants in line and rental properties running smoothly.

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Yes, rental property managers play a very important role. Has there ever been a change in this role, James?

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Good question! Yes, there actually has! Recent years have seen an increasing trend of landlords expecting more from their rental managers than they’re receiving.

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Are there any specific reasons for this, James?

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Yes, these reasons include, changes in the space and the availability of free online rental tools and services that have created the perception that basic rental management services are ‘easy’ and professional rental managers should be delivering a service far beyond that which can now be DIYed.

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So, does this means the golden age of rental management has come to an end, James?

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No, it doesn’t. Evolving consumer demands have been affecting all aspects of the property industry, and it would be naïve to assume rental management could escape unchanged.

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So, what can rental managers do to combat this trend, James?

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Well, rental managers need to realise that now is the time for reinvention and adaption to bring the industry back in line with customer demands and demonstrate the irreplaceable value of a true professional’s expertise.

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We couldn’t agree more James! Apart from this, what are some of the challenges faced by Rental Managers?

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With the internet making access to tools and information widely and freely available, and the professional tools available to rental managers remaining largely unchanged, it has become undeniably more difficult for rental agents to convey the true value of what they do – let alone enhance that value to meet growing expectations.

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That’s not to say good rental agents aren’t currently earning their fees. Their role is both varied and time-consuming and generally amounts to far more than the sum of its parts. A new investor approaching a rental agent for the first time, however, may find it difficult to look past the apparent simplicity technology has brought to the rental management process. That makes it easy for them to underestimate the return on investment that their management fees would be delivering, making the self-service route appear attractive by contrast.

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That does sound challenging, James! So, what is the solution?

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Well, it’s fairly simple. Rental managers need to reposition rental management as rental asset management!

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Interesting, James. How would they do that, though?

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No need to worry! The changes needed are far less drastic than they may seem. In fact, most of it boils down to successfully communicating knowledge most rental managers already have.

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Here’s how:

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1. Make your role obvious in your title

The first step to being seen as more than just a rental manager is to get that message out as far and wide as possible.

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2. Help your clients plan and implement a property investment strategy

Before signing up a new landlord, it’s incredibly important to talk to them about how a property fits into their financial plan and formulate the right investment strategy for their specific needs.

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3. Provide professional, comprehensive investment reporting

A monthly cash flow report is not enough for modern property investors. Landlords need to be kept aware of the growth and changes affecting their asset, not just its current value and expenses.

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Thanks for the advice, James! Is there anything that WeconnectU can do to help too?