Another change of career to a PM thread

Discussion in 'Property Management' started by AJK, 13th Oct, 2017.

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  1. AJK

    AJK Member

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    Hi folks,

    Long time lurker, first time poster. I am really interested in starting a PM only agency in Vic as I believe there is a real gap in the market in my local area and poor service from the local sales/PM agencies.

    I have previously self managed IP's both here and in SA and am comfortable with the business side of things and am frustrated with the poor local service offered by current agents. I think I could run a profitable business by offering purely PM and better customer service.

    I have a good understanding of the educational requirements required to become a Licensee however my big stumbling block is the 1 year experience requirement!

    Interested to hear how other PM agencies have started out - (did you work for a sales/PM agency in your area for experience then go out on your own?) or even better if there is some way around the 1 year experience requirement? The idea of trying to gain employment at a local agency for a year just to get the experience doesn't really sit well with me ethically(however suppose if that is the only way you've gotta do what you've gotta do!)

    Also happy to hear any other helpful suggestions as well.

    Cheers,

    Adam.
     
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  2. D.T.

    D.T. Specialist Property Manager Business Member

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    That bit sounds pretty similar to how I got into it. Had IPs in Adelaide while living in Perth, tried them with a few different PMs. Gave up on the idea that there'd be any good ones here which smelled a lot like opportunity to fill a gap.

    What area you thinking of operating in? Do you have back up funds, a business plan, a way to get clients in the door?
     
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  3. AJK

    AJK Member

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    Hi D.T.

    Thanks for the reply! You were actually one of the members I was hoping to get some insight from.

    Would be in South Eastern suburbs of Melbourne. Business plan and attracting clients I am comfortable with and back up funds/ capital is reasonably under control.

    My big issue is the experience component of the Licensee requirement. One of my initial ideas was to 'transition' into the business by building up the business whilst retaining my current role part time.

    How did you (or anyone else that has done similar) start your own PM business?

    Thanks,

    Adam
     
  4. Chivaun.Shortis

    Chivaun.Shortis Well-Known Member

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    If you do have to go down the line of 1 years experience it may be good to work for a boutique agency and not a known brand agency to get some ideas of the do and donts in starting your business. I know it would be easier just to start your own business straight away. Have you done PM in another state as you may be entitled to prior recognition
     
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  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Getting that experience for a year will really help with making your business successful as it's a big leap from self managing to running corporate style systems for a PM business
     
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  6. AJK

    AJK Member

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    Thanks for the advice @Westminster & @Chivaun.Shortis,

    I do understand the value of the experience and how different running a corporate style system is to self managing a few properties however the plan was to complete Cert 4 to gain the licence and set up the appropriate systems (such as PM software, tenant database, IRE etc) and then start by managing a limited and manageable number of properties (say 10 or so) around my current job which is reasonably flexible to gain the experience.

    Only issue with that is the Vic licence requirement of 1 year full time experience which I suppose in a nutshell I am just appealing to those on this forum that have the experience/knowledge of the industry if there is any way around around the experience component of the licence.

    If not I suppose I would have to bite the bullet and do a year in an agency strong in PM.

    Thanks,

    Adam
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Do all states have that requirement? Just wondering if its possible to get licensed in another state and transfer it to Vic? Or even get licensed in another state, wait 12mths, then transfer it to Vic and just do your normal job for 12mths.

    Alternatively you could find someone in Vic who does have a license that can come to an agreement to let you somehow use it for a year so you can operate your business from day 1 but with their license.

    I'm brainstorming crazy ideas. People with license will know more than me :)
     
  8. D.T.

    D.T. Specialist Property Manager Business Member

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    WA has 2 yrs, Vic 1 yr, SA 0. Not sure on the rest.

    Paying a licensee could be another option.

    But getting some experience wouldn't be the worst thing in the world.
     
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  9. AJK

    AJK Member

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    Thanks @Westminster and @D.T.

    Just the sort of thinking I was after!

    @D.T. - you mentioned living in WA with properties in SA and noticing a gap- were you already in the industry before starting your Adelaide PM? Reason I ask is that I like the concept of your model.

    Cheers,

    Adam
     
  10. D.T.

    D.T. Specialist Property Manager Business Member

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    Yes, worked at others first. Which concept do you mean?
     
  11. AJK

    AJK Member

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    Sorry should have elaborated... I like the concept of your PM focused business model with flat rate pricing and the value add of an owners portal.

    Doesn’t appear to be anyone offering that kind of service in my local area in Vic.
     
  12. datto

    datto Well-Known Member

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    AJ, are you sure you understand what you are wishing for?

    There's a big difference between self managing a few properties and managing a full blown portfolio.

    You are going to be the meat in the sandwich between a nagging tenant and a tight wad landlord. The former you are going to try and throw under a bus and the latter over a cliff.

    And that's just over a bathroom smell from a tenant with IBS who thinks there's a dead cat under the house lol.

    You might end up with PTSD.
     
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  13. D.T.

    D.T. Specialist Property Manager Business Member

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    Thanks
    Qura in South Yarra is and they're great :)
     
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  14. Ted Varrick

    Ted Varrick Well-Known Member

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    This doesnt seem ideal.

    "...meat in the sandwich..." and "...dead cat..." is hard to reconcile...
     
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  15. D.T.

    D.T. Specialist Property Manager Business Member

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    Kinda accurate some days, but the other 99.5% of owners / tenants makes it all worthwhile :)
     
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  16. AJK

    AJK Member

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    Thanks for the advice @datto ! Nice analogy too.

    I do have a fair idea of what will be involved and I’m already the meat in the sandwich in my current industry! You just can’t please some people and that’s one of the main reasons I’m keen on this as I really think in my area I could offer better service for landlords and tenants alike than what is currently on offer.
     
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  17. J.C Murphy

    J.C Murphy Member

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    Honestly, I think you're on the right track. Everybody starts somewhere and sometimes an outside perspective can be more valuable than insider experience. If you're looking to do things differently than those in the industry already, maybe it's worth making your own mistakes and coming up with your own solutions. A caveat to that is that you're dealing with peoples investments worth a considerable sum so try to keep the mistakes limited without costing your clients too much money.

    There is an amazing amount of information available to anyone with the time to look for it. My advice would be in alignment with Peter Thiels concept of starting small, work like mad to develop not only exceptional service but the systems that support that level of service and then and only then start to grow.

    As D.T said, make sure you've done the homework and set yourself up with enough of a safety net to hold out for a period of time without much revenue and learn quickly.
     
  18. Lil Skater

    Lil Skater Well-Known Member

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    The most important thing that I think most people miss is actually learning the legislation back to front, then of course customer service in general and returning phone calls.

    There’s really no way around the one year experience, and I think it’s important as it shows you things you don’t learn by simply going in head first.

    I’m more than happy to have a chat with you and help you, a little bit of competition is a good thing ;)

    I had 4 years experience before starting, however I’d probably deduct a year because I had a baby and therefore there was a while where I wasn’t working full time. I’ve now been running mine for 4 years - the job itself was the easy part for me and I was fortunate that I had a husband, in laws and parents that had all run their own businesses in the past.

    And as Dave mentioned, I do offer an inclusive rate and owners portal plus service some of the South Eastern suburbs. I also know of quite a few more that do it too, usually they’re small businesses like myself and don’t have big names. ;)
     
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