For every one we gain, we seem to lose at least one and our numbers of properties under management are not growing.”

It’s the same familiar sad tale from many real estate principals around the country.  There are a variety of reasons why this situation is so prevalent and an equal number of ways to rectify it.

For the same reasons that strategic plans often fail, a growth strategy is not achieved in many Property Management Departments because:

  • Failure to understand the prospective client’s needs 
    • Why would they choose you as their agent?
    • Is there a real need for the management product we provide to be done by a specialised company?
    • Have we carried out any marketing research on what is needed in our marketplace?
  • Inability to predict environmental 
    • What do your competitors do?
      • Fighting brands – are you competing at the same level or have you been able to differentiate your product?
      • Price wars – is it all down to the fee?
    • Will government intervene – is there a possibility of greater government involvement in the housing market?
  • Over-estimation of resource competence
    • Can your staff, equipment, and processes handle the growth strategy?
    • Have you failed to develop new employee and management skills
  • Failure to coordinate 
    • Reporting and control relationships not adequate
    • Organizational structure not flexible enough
  • Failure to obtain senior management c ommitment 
    • Failure to get the principal involved right from the start
    • Failure to obtain sufficient company resources to accomplish task
  • Failure to obtain employee commitment 
    • New growth strategy not well explained to employees
    • No incentives given to employees to embrace the new growth strategy
  • Under-estimation of time requirements 
    • A growth strategy is an ongoing commitment and not a single project
  • Failure to follow the growth strategy 
    • No follow through after initial planning
    • No tracking of progress against the strategy
    • No consequences for above
  • Failure to manage change 
    • Inadequate understanding of the internal resistance to change
    • Lack of vision on the relationships between processes, technology and organization
  • Poor communications 
    • Insufficient information sharing between the principal and employees
    • Exclusion of some employees in the process

Achieving significant growth in a Property Management Department is not just about developing and implementing a Marketing Plan – that is just one of the elements for success.  Growth is inherently linked to many operational components of the Department and all must be addressed if a growth strategy is to be successful.

REMA can provide direction and assistance in the development of a successful growth strategy and be there with you and your team to make sure that not just the strategy is successful, but its growth goals are realised.