1700 properties under Mang’t in 10 yrs – The techniques of growing a Letting Agency by Andrew Reece

Andrew Reece you grew your letting
agency from nothing to 1700 managed properties in Australia before you
started your prop tech firm. I don’t talk about your prop tech today …. I want to drill down on your techniques of growing your letting agency and in particular how you
got self-managed landlords and you actually had a script didn’t you I
scraped the we’ve got here boys and girls that’s it for everybody and it’s
anyone there’s nothing like what a script is that’s not let’s do Show and
Tell yeah you know yeah when we were children we were do Show and Tell
let’s do Show and Tell so tell me what you could be the agent and I’ll be the
self managed landlord and let us go through the script so are you ready yes . ring-ring
so I’ll be ringing you so at this stage of the scenario is is that you’ve got a
property for chasing a tenant on gumtree yes that’s so self managed landlord On Gumtree yeah so the phone call is… ring ring ring
ring …hello ….hello my name is Andrew I was just calling about the property that
you’ve got for rent on gumtree yes ….. can you tell me a little bit about
it yes it’s a two-bedroom one-bathroom apartment excellent whereabouts is it it’s on Smith Street just down the road from KFC Oh excellent okay and when you’re next going to show
their property when’s your next viewing yeah I’m there at Saturday lunchtime Excellent right well my name is Andrew as I said I’m actually a property
manager with XYZ firm and I was wondering at the time while you’re
showing that particular property that viewing can I just drop past I’ve got a
pack that has helpful hints for our landlords like yourself they’re trying
to find a tenant and if I can drop that past and say hello okay lets stop the conversation there …. you are introducing yourself …..I was impressed that you didnt try and sell me anything but you’re actually giving something okay so you’re
giving information… could you even egg that …. could you egg that on a bit I suppose you could actually very much so because the key of
that is for the first half of the call you thought I was a tenant calling about
your property okay so straight away I didn’t I’m just
Andrew I want to know a bit about your property then the key is to when you’re
going there next okay because you’re really going there okay all you can tag
along and that’s that’s the bit that’s the magic
yes…….. okay so what sort of hit rate what sort of yes or no in….. ninety percent hit
right no yes yes yes because again in Australia on set because you need a
tenancy agreement ….you need a green booklet ….you need an entry report … I can
bring all those documents to you which will provide all the information that
you need and I’ve got ten points to how to rent a property fast …so even
if they come back and say oh I’ve got all that you can overegg the pudding
…. there’s 10 points to help you act and that’s just like a booklet awesome yeah
it was just a sheet of paper okay and so then I turn up to the property okay
first thing I’d do was that walk into the to the property and say Oh Chris was
really hard to find you should really put a For Rent sign at the front because
if you put a For Rent sign on people be able to see it rather than Let me translate – that is a To Let board [for the UK viewers] so to let bored out the front and then
what my favorite part of it is as I would then walk in because when you do a
vacate inspection you saw me you know coming around okay so he’s going around
an empty property yes that’s correct to do a what are they called here they
call down free val or an appraisal no no exit so when you when you’re having a
tenant move out you go and check on the property okay but we’re assuming with
the tenants already moved out yes that’s great but what I want to do is I’ll walk
into the property and I’ll open the oven door I’ll put my hand on top of the oven
and I’ll go gee Chris that’s a bit dirty you should really get the property a bit
clean if you want to try and let it fast and then I walk around and I touch the
skirting boards and so what I was really doing was showing the owner challenging
that you’re challenging the landlord that’s correct
you can’t rent the property in this state because it’s a mess brave yeah I
mean you’ve got to remember that most letting agents are very detail
orientated people they’re not saleys people they don’t like to be criticised
that’s their biggest fear but what I’m doing is I’m showing the owner if he
really wants to let this property fast .. he’s got to present it better that he needs a
for rent sign and then then then I’ve gotta make sure that it’s clean okay and
so then I get to talking how many people have your had through …what’s the price
you after So therefore by almost you’re not being nasty about the
property… you’re actually being truthful yeah… do you think that almost …..
sideways is on what’s the word I’ll try and look for it’s creating ….making them
and all think walks all of a sudden they think they just go try and sell them and
in fact they’re actually helping him so people could kick you out???? no no the complete opposite because they’re like
okay well that’s probably makes good sense
again you know I’ve managed 1700 properties we need to really make sure
they present well and these are the things you should do and also your photo
on gumtree that you’ve got the toilet seat up and you know you got your
sunglasses on the bench you stand back and take the photo from here you sort of
give them a hint some help the real clincher are was to them say if you like
I can compete against you if you’re after 300 pounds a week
my fees 30 pounds I’ll add it on the top if you find a tenant before I do you can
then manage the property but if I find someone at 330 and cover my fee will
you engage me as your agent and so then they then I’m competing against them
….. and even if you don’t even if they do rent it quicker
you’ve now built a relationship with someone yes clever
just good on fashion tickling them keeping in contact with them …sending
them a few great vibes of that deals eventually you’ll probably get them if
you played the long game yes and also what you do get is that he goes back to
his office or you know he has other people I own property they know that and
they say I met this guy on the weekend he was really helpful because then we
used to do this thing called call night we ring you as a contact say … hi Chris
you know how’d you go you found turn that’s great is that coming up for rent
again do you want me to sort of help you no no it’s fine but do you know anyone
that also may need our services at the moment we’re offering a promotion that
if you refer us a property we’re giving you a four hundred dollar travel card if
you pass that contact and they become successful and he’s a letter then goes
out to them with a called action date which is usually the next sort of sixty
days and so even though they never won I never won that business they know other
people that owned properties who don’t want to manage them themselves and and
and because to me growth gets done of two factors if you’re not growing your
rent roll it’s because of the fact that you aren’t generating enough leads or
you’re not converting them now the amount of owner managers [self managed] … well half of properties in the UK are self-managed that’s right this is
a cracking cracking prospecting question sheet anything else on the next page so
if you do have that 10% who says to you know now I’m not interested
new vendors send them a little thank-you card time and you can send the pack in
the mail to them if you want good stuff and in the end it’s got some overcoming
objections yes so let’s go through those objections so here’s one I don’t want
just anyone in my property that is fine you get the choice of the particular
successful applicants I’ll call you and run through who has applied for your
property and you get to choose is it Its cheaper if I manage it myself …
that comes up to what we were doing before yes okay or alternatively I
always look at how much is your property worth is worth three four hundred
thousand pounds do you think that you should make the choice of who manages
your property over thirty pounds a week and so bringing back that choice also I
would take along entry reports to show the owner of the details of our work and
also arrears lists to show how good we were at collecting rent and I do
honestly feel like I have a few properties I don’t manage myself I do
think only of goofs manage their own property because you can it’s very hard
to be impartial of course if it’s get too involved yes I find the objection is
it an exclusive arrangement no yeah because I was quite happy that you
could list yourself and against us and whoever finds the tenant that you
approve then I can actually see probably you won’t actually get much business on
the first one but as most agents bring up gumtree landlords who tell them to f*** off this
is a way to get to the property ..build and basically use this first property as a
way to build a relationship for the next one all their mates property see the people it’s the best way to go out and see someone so on a Saturday you could go and see 15 hot prospective landlords who have vacant properties
that need tennats fast seventy-six percent of our growth from 31% to 79% … 56%
came to us as a vacant property or a void so it gave us the opportunity then
to because we fix that problem they hadn’t notice they had no money coming

Stephen Childs

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