Wednesday 30 September 2015

The Art of Procrastination


Procrastination, the final frontier. It’s you, those never ending tasks, the sea of paperwork and that ever ticking clock. The concept of procrastination is something that we all struggle with from time to time and it is important, especially as our days become fuller to recognise some of the symptoms that can lead to the battle with this little work diversion.
Does the following sound familiar to you?
·        “I can always do it tomorrow (or next week, next month, next year).”
·       “The deadline is kind of flexible.”
·       “I’ll do it soon.”
·       “The due date isn’t for ages…”
·       “It doesn’t matter if I’m a little bit late.”
·       “I don’t want anyone to micromanage my time.”
So how can we avoid getting into the web of procrastination and start to master that elusive time?
1. Our brains are not all wired the same
Everyone is unique and we don’t always march to the beat of the same drum. People are wired differently when it comes to their relationship to time and while some people bounce out of bed, screaming into the morning, others are may be night owls and take a little longer to get motivated throughout the day, maybe even after a few coffees. With this in mind, it is important to recognise that your expectations of time and how to control it may be different to someone else’s.
2. Track your time.
Have you sat down and measured how long a task takes? Keeping a time log for a week can be a great eye opener into how long a task may be taking you.
Another tip is that every time you touch a piece of paper on your desk, that you mark it. You might be surprised how often you are shuffling the same papers over and over. Also, make sure that you record all important dates in your calendar so that you don’t fall into the trap of forgetting.
4. Remember you are human
Despite all best laid plans and intentions, life will not always go according to plan. It’s important to allow space for those things that may happen without warning.
Don’t forget to delegate. It can be difficult to hand over a task, but with the right training and attitude, someone else can handle a task that will save you time and allow you to focus on dollar productive tasks.
Set difficult tasks when your energy levels are the highest, this will ensure that you can churn through those tasks more efficiently and avoid that procrastination trap.


A wise man by the name of Benjamin Franklin was once quoted as saying
“Don't put off until tomorrow what you can do today.”


So what are you putting off today?


Heidi Walkinshaw
Real+

Team Targets and Incentives


As a business leader, it is essential that individual staff KPIs are set and reviewed on a regular basis, to ensure that individual targets are achieved (and exceeded!).

But what about team targets and incentives? Are they an important factor? The short answer is yes. It is vital to motivate staff to achieve team targets and goals, for the key reasons mentioned below:

1.       To encourage staff to work together as a team towards shared business outcomes.
2.       To avoid the ‘silo-mentality’ that is often evident with portfolio management.
3.       To promote a workplace culture focused on cross training, support, teamwork and     shared success.
4.       To increase business results, ultimately achieving growth targets and exceeding customer service expectations.
5.       To encourage individuals to assist each other when needed (eg: covering the workload when staff are on leave).


Quick Tip - to avoid the need for additional staffing resources, why not split the portfolio across all Property Managers in your team when someone is on leave? This can be built into your team KPIs? That way, the workload is evenly distributed, customers continue to receive quality service and your Property Manager will return to work without the dreaded feeling of an overwhelming workload to attend to. That’s true teamwork!

When setting team targets and incentives, it is vitally important to involve your staff – ask them what they think is fair and equitable (for all parties involved) and more specifically, find out how they would like to be rewarded.  Agreement of shared goals will set the scene and clarify the ‘rules of play’, ensuring that all staff understand exactly what is required of them to achieve the target and receive the incentive. Transparency is crucial this process, to ensure there are ‘no shades of grey’. The team target is either achieved or not.

Many successful and unified Property Management teams have implemented the following ideas regarding team targets and incentives. Understandably, the structure and type of incentive may vary from office to office, depending on the type of team goal and the financial outcomes related to the goal (ie: people, growth, revenue).

Some examples of team targets and incentives may include:

  •         Monthly incentive - if revenue target is achieved (based on total management income generated): $250 gift voucher each.
  •       Quarterly incentive - if revenue target is achieved on a cumulative basis (based on total management income generated): $500 gift voucher each.
Note - this is a great motivator if the team has missed the monthly target, yet averages out across the quarter to meet the revenue target. This is gold for encouraging continued momentum.
  •         Bi-annual incentive - if growth target is achieved across a 6 month period (ie: total number of managements increases to the figure agreed upon): team building day off-site, team lunch/dinner/movie night, etc.

To reward people for their achievements individually is crucial. To reward your team for meeting their shared goals is the key to protecting existing business and paving the way forward for growth. A consequence may also include the retention of exceptional people in your business and development of high performing teams.

Lastly, remember that you can never underestimate the power of non-monetary rewards. A simple (and genuine) thank you for a job well done never goes astray. Why not a morning/afternoon off, perhaps a bottle of wine, a bunch of flowers or a box of chocolates? These types of rewards will always be well received by your team and will indirectly build loyalty and commitment to your business - so staff are more inclined to go ‘the extra mile’ when necessary.

The Real+ team are here to help you. Why not contact one of our experienced consultants today to find out how we can assist you and plan for business growth simply by setting team targets and identifying team incentives that will work within your business?

 Rachel Atkin 
 Real+



Wednesday 23 September 2015

When A Property Won't Lease

Tearing out your hair with a property that won’t lease? Freaking out at the days on market creeping up? Having trouble convincing an owner to reduce their prices? You are not alone.
Many of our clients around the country are experiencing some tougher times in leasing at the moment and are frustrated by getting their owners to reduce their rents to meet market conditions.
If the property is in good condition, marketed correctly, and available to be shown, as agents we usually know it’s the price that needs to shift. Price adjustments typically aren’t easy and often you will feel like you’re fighting against your owner at this stage of the property management process (despite the fact that effectively you are both on the same team, both wanting to get the best possible rent in the least amount of time).
The important word to note here is “possible”.  Securing the best possible rent doesn’t always mean the highest rent the property has ever received. What this means is securing the best possible rent for that particular point in time, given market conditions, tenant options and situation.
The first problem is that often landlords have an assumption that the rent should continually be going upwards. There is a lack of education to these clients surrounding the time of year, market conditions, recent data, and a realistic comparison of their property to others on the market.
The second issue is that because the rental market moves so quickly, the price from a few weeks ago may not be accurate today – but we aren’t educating them along the way so they know this, we assume they know what we know, and it’s usually weeks into marketing the property before we start to speak to the owner about reducing the price to meet market conditions.
In markets like this it’s often not enough to rely on your normal renting tactics – list property online, take enquiry, show apartment, receive application, hey presto – apartment rented!
You may need to use a few proactive tactics to communicate smarter with the owner to ensure you can get faster results:
1. Use your data 
There is a plethora of data available to you in the property management world that is underutilised at all stages of the leasing process. Days on market, vacancy rates, registered tenants, properties leased by your agent, properties leased by other agents, number of comparable properties currently on the market, properties leased by agency each week, applications, enquiries, property visits. Data doesn’t lie and can be used to paint a very effective picture to your client from the get go, sharing this data means they can go on the journey with you & be more prepared to agree on price adjustments. Most of us have access to this information, but it’s how you use it that will make a difference. 
2. Know your numbers
Know exactly what it will cost the owner to wait one more week for a tenancy. Being able to explain the cost of having no rent coming in versus dropping a few dollars a week over the course of a 6 or 12 month tenancy may help them see how important it is to get a tenant in rather than wait for the top dollar in rent – how you can help maximise their return. If you want to take a harsher approach, one of my favourite pieces of dialogue surrounding this comes from Andrew Reece of Inspect Real Estate “Mr Landlord – your property is currently rented for $0 per week..” that should get them thinking...
3. Preframe your review dates
In relationships we all hate to hear the words “we need to talk”. And the same negative emotion can surround the discussion with the owner around “we need to reduce the price”, especially framed weeks into the marketing campaign. Explain to the owner from the initial stages of leasing that you conduct regular reviews of the market and WILL be recommending price adjustments along the way to ensure we achieve the best possible rent for you in this market in the least amount of time. Using the words adjustment, rather than reduction should help your cause too.
These are some points you can use to improve your process surrounding price adjustments in order to get a faster result, but there are many more great ways to think outside of the box to get your properties leased faster.
We have a handy checklist guide to give away to you this week - click here to get your free copy of the “It Won’t Lease Checklist” and good luck!


Wednesday 16 September 2015

Tackling Property Maintenance

When it comes to property maintenance, it can sometimes be what feels like a never ending mountain, although one that must be kept up to date, lest it crushes you under the weight.
Spring is upon us and usually it is a time when hordes swarm to Bunnings, looking for the next DIY project and Owner’s may start to awaken and think about renovations to maximize their investment. 

Having a sound process in place to handle maintenance can really save you time and stress down the track. So let’s take a look at some steps that you could be taking:

  • When you receive the maintenance request, ensure that it is in writing and entered into your software
  • Seek authorisation from the Owner, unless of course you have pre-authorisation for any repairs which can save you time
  • Prepare a work order from your software to email out to your tradesperson. You may also like to copy the Tenant into this correspondence to advise that the work order has been sent and the details of the tradesperson
  • Follow up is key! Don’t forget to follow up with the tradesperson to ensure the work has been completed. It’s a great idea to follow up with the tenant to make sure that the work has been completed satisfactorily.
  • When the invoice comes in, send a courtesy message or make a call to the Owner to advise the invoice is in and that you will be making payment. This acts as another point of contact for that Owner, keeps them updated and also informs them that the invoice will be on their next statement so that they can plan.
When it comes to larger maintenance such as renovations, ensure that when you are carrying out routine inspections that you are noting the possibility of new fixtures and fittings that may be needed in the future so that they are prepared for the inevitable.

Educating your Owners on possible changes can assist in their budgeting and also shows that you are assisting in maximizing their investment. The team at BMT Tax depreciation have some great apps available for free that can also help you with working out the value and depreciation with the property. It’s also a great tool for tribunal.

Don’t forget the outdoor areas either, with the bush fire season upon us, it is vitally important to ensure that gutters are cleaned from leaves and debris, decks are sound for those barbecues and that all swimming pools are compliant with legislation and safe.

Stay on the front foot with your maintenance and your future self will thank you for it as you have more time to enjoy the sunshine!


Wednesday 9 September 2015

Make sure property investors don’t throw away cash

When an investor purchases an investment property, whether it is brand new or an older building, over time some of the items within the property will need to be updated and replaced.
The biggest mistake investor’s make when renovating an investment property is to assume there is no value left in the assets they are removing from the property and often these items end up at the tip with little regard to the dollars they could be worth.
Property professionals need to make their investor clients aware of the significant tax advantages which can be generated over and above a normal depreciation claim when they decide to renovate an investment property.
A process known as scrapping can be applied when any potentially depreciable asset is removed and disposed of from an investment property. Scrapping allows the owner to claim the remaining depreciable value for items being removed within the same financial year as their removal from an investment property.
Before scrapping can be applied, there are a few important points every property professional should inform their client about before starting any renovation work on their property:
  • When an investor purchases a property, it must be income producing before the owner completes a renovation in order to write-off the value of removed assets
  • An investor should arrange a tax depreciation schedule prior to the removal of any structures or assets. This will allow a specialist Quantity Surveyor to value all of the items contained within the property and obtain photographic records to substantiate the owners depreciation claim
  • After the renovation has been completed, a second updated depreciation schedule is required to value all new plant and equipment and capital expenditure within the property. This schedule will outline all the claims the investor can make on these new items
Case Study
The following scenario shows how one investor benefited from the additional deductions received when renovating their investment property.
Kelly purchased a fifty year old, two bedroom house. After renting it out for two years, Kelly decided to renovate her property. In its pre-renovation condition, the house contained carpet, blinds, an oven, a cook top, ceiling fans, an air-conditioning unit, a hot water system and light shades.
When Kelly originally purchased the property two years ago she engaged a Quantity Surveyor to complete a tax depreciation schedule. After hearing about the additional deductions available when renovating, Kelly contacted BMT Tax Depreciation to find out more. Kelly found that she was able to use her existing depreciation schedule to work out the remaining depreciable value of items which were to be removed during the renovation.
When the original depreciation schedule was completed, a depreciation expert visited Kelly’s house and conducted a full site inspection. During this inspection they took notes and photographic images of all the depreciable items contained in the property.
The below table outlines the original value of each asset identified in the original depreciation schedule and the remaining un-deducted depreciable value for these items that could be claimed instantly once these items were removed from the property and scrapped.

Once the renovation was completed, Kelly was able to claim $9,073 in additional deductions in her personal tax return that year. Kelly also requested for BMT Tax Depreciation to update the depreciation schedule for her property once the renovation was completed.

A depreciation expert visited the property to perform a second site inspection and take new evidentiary photos and notes about the additions. The Quantity Surveyor then calculated the construction write-off allowance now available on Kelly’s new extension. New assets also included an oven, an air-conditioning unit, a hot water system and blinds. In addition to the $9,073 claimed on the removed assets, Kelly was able to claim $8,700 in depreciation deductions for the newly installed items in the first year alone and $29,300 in the first five years.
More ways property professionals can help
BMT Tax Depreciation has created a handy application called BMT Resi Rates which can assist property professionals to help their clients to work out when it is appropriate to schedule maintenance, replacement and renovation work on a property.
BMT Resi Rates allows property professionals to search and find the depreciation rate and effective life of common depreciable assets found within a residential property. To download Resi Rates, property professionals can click here or for more information, contact one of the expert staff at BMT Tax Depreciation on 1300 728 726.
Article provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Chief Executive Officer of BMT Tax Depreciation. 
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.




Wednesday 2 September 2015

Exceptional Business Development Managers

Increasing revenue, driving business growth and securing market share is always a hot topic within the real estate industry. Competition between local agents is fierce and as a result, exceptional Business Development Managers are in high demand.

What exactly is it, that makes a Business Development Manager exceptional, you may ask? This is a subject very close to my heart. As a former BDM with over ten years’ industry experience, please allow me to share my thoughts with you …

A BDM is not a Property Manager
In no way, is that expressed in derogatory terms. It is, however, a common mistake made by business owners when recruiting a BDM. The skill set of a BDM is vastly different to that of a PM and is completely aligned with that of a sales person. It is vitally important that business owners follow the same recruitment and selection process for a BDM, as they would for a Sales Consultant. They must be:
-          target driven and results focused
-          champions at regular prospecting
-          able to set the appointment
-          effective users of scripts and dialogues
-          able to convert the appraisal into a listing
-         able to maintain relationships with existing clients whilst developing and extending their database of clients

A HOT TIP: Savvy BDMs are those with strong business and developer contacts; particularly when they have established themselves as a trusted adviser within their referral networks.

A BDM is essentially a sales person who just happens to work for the rental department! They will perform at their peak when they are solely focused on: PROSPECTING – NURTURING – CONVERTING. BDMs must always be ‘client ready’ in terms of their responsiveness to new business enquiries. It is a definite game changer to have quick turnaround times, from a prospective Landlord’s point of view, when comparing with other local agents. As such, I am a huge advocate for the BDM listing the property, then immediately handing over to a leasing consultant or a property manager. This must be treated with care and transparency from the outset, with exceptional communication between all parties, for the warm transfer to be successful. Ultimately, the Landlord should feel supported by more than one contact point within the business – rather than the old ‘list and flick’ (I shudder at the thought!).

Longer term, exceptional BDMs will execute a solid business plan to grow their team/department and may even run EBUs with support staff such as: PA’s, administration and marketing assistants, leasing consultants, etc. This is where the big business kicks in and the rent roll gains solid and consistent growth momentum. Happy listing!

Want to find out what you can do differently to support your BDM to achieve exceptional results, as they bridge the gap between your Property Management and Sales Departments? The team at Real+ are ready when you are!


Rachel Atkin
Real+