change of career to property management

That's similar to what I'm doing at the moment. Through structured growth and perfecting processes/systems, growing at a pace that allows that "boutiqueness" to be maintained.

I have a goal / dream that is much different to most PM's that I won't really go into in public, but will be the result of the above.

 

I agree with the above sentiment... It sounds like an interesting gig in theory.. But you would have to deal with soooo much nonsense for such little security/compensation.

 

Good day all,

Thank you to everyone that has contributed. Harsh comments or not I still take them on board as this will certainly help with the decision making. My circumstances at work right now is terrible and I guess this is what drives me to get out of the department. Mind you, I have always been thinking about it but I guess given the situation it’s more or less a kick up the bum to get things moving.

@thatbum - I accept that it may not be a glamorous position, however I am willing to commit to the long hours, the challenges of the role, learn the nature of how to run your own agency, all with the mindset and to achieve my goal of one day opening up my own agency.
Again you are right that I may not know the day to day of being a PM. However if I was to commit to this, I will go all the way and learn from the bottom up.

@Bayview – Apologies for not being clear in my first post, and the word ‘passion’ may have been used wrongly in this case. I was merely trying to outline my determination as an investor and my current skills, to see if this will give me the advantage other than just being another PM.
I agree financial freedom is what I am looking for and am using real estate as my vehicle to get me there.

@richardtaylor – Thank you kindly for your post. At least I am aware this could be the expected salary.

@Scott No Mates – This is something I was even considering and would probably apply for leave without pay if the department will support my application. At least in the event if it does not work out, I could always go back (not that I want to right now). By same token, if I were to quit work altogether this could drive me to go further to succeed knowing that there is no turning back.

@BuyersAgent – Thank you for the post. Points 1 & 2 are my biggest hurdles so far. It is the mindset of being in a secure government position and going into a role where one day I may not have a job. I guess the effect of the GFC really hit me when my wife was affected, and I said to myself then never to put myself in that position again. I think I will take your advice and will read books to help the mindset. Further, I will be talking to some acquaintances who own their agency and see what advice they can offer.
Points 3 – 6, I guess I am in this to change things, be different to the other agencies out there, be smarter in how things are done and willing to work hard to achieve success.
Point 9 – Point taken, but you raise some good points with mindset.

@Biz wow – Really… that certainly wasn’t part of the plan. I will need to look into that.

@Leo2413 – I guess most investors engage their PM to do the usual, collect rent etc. I share your view hence the reason why I manage all my rental properties myself. But I would like to change the way services are delivered, such as better communication to clients, build relationships with clients, put forward a recommendation to investors regarding rent review (what the rental market is like, what tenants are like, risk assessment etc), find ways to minimise on property being vacant on the market beside just dropping rent, (networking?) etc. I accept maybe I am aiming too high, I could be naïve and not understand the role as a PM. Still, I just think there has got to be a better way than offering a standard service.

@D.T – Wow thank you, will keep this and make sure I take this into account when I look at opening up my own agency.

@Chris White – Thank you for your comment. That’s pretty much my focus – to build a positive relationship with my clients, by offering a service with keeping in mind client needs first and foremost, and what is the best outcome for them. I will be going away shortly for two months so will take this opportunity to reflect, and if I decide to go down this road I will then put forward my CV and try to focus on the agency with quality over quantity.

@DiligentPM – No I haven’t and will look into that. I have done some reading on this, probably a couple years back now. Maybe it’s worth reading again to get a refresher and change the mindset.
I have plenty of ideas, plans and strategies on how I like to establish and see the business grow. Maybe now is also the time to put it writing and map it out. In terms of rent roll, I was always planning to undertake the task of building my own rent roll. This will be in line with my view of building relationships with my clients.
The one thing I haven’t quite figured out is the transition from being a PAYE to setting up my business. Ideally would be nice to continue as PAYE until I am ready to take the leap into starting my business. I just don’t know if this will sit well with other real estate agencies as they may see it as conflict/competitor/ taking their clients? Any ideas how I can overcome this?
In any event, I think in WA you have to work as a REA for two years before you can set up your own agency. This is from my last reading of Department of Commerce website. I see this as an opportunity to learn and understand how the real estate industry works.

Thank you again all for your comments and please continue to put your thoughts forward.

 

I really like the attitude and devotion you have. I'm sure you'll go far.

Give me a bell if you ever find yourself in SA for any reason.

 

Great attitude and pro-activeness in getting started - wish you all the best. IMO with that attitude, you'll go very far. I love the 'value' proposition that your already thinking in and your desire to be different. Thats the premise and starting point to defining what you want your brand to be.

In terms of rewards, i'm sure this will come up in your research and perhaps other PM's can share, but i thought a successful PM could be a financially rewarding business (as most successful business are relative to PAYG work). Having 300 properties under management with a $500 p/w rental and service proposition (not price) with 1-2 staffers would likely earn you significantly more than $100k and the business value (equity?) would be quite large too. Could be wrong though, i know very little about the industry, but the revenue would be pretty strong.

Goodluck!

 

The rent roll as an asset (similar to trail book for a broker) is worth about 2.5x to 3x its gross annual income. It varies a little bit dependent on state, the quality, location, average weekly rents, landlord: property ratio, yadda yadda

But yes, 300 properties at 500pw would be better income than the OP would be getting as a public servant, I'm sure

 

I might have been wrong on those figures, you would know DT. Managing around 100-150 properties what income could you earn from that? Assuming they average out to around $350 per week.

 

@Biz - WA: 8-10% + Lettings fees

 

Remember that's gross not net, I listed a bunch of overheads earlier in the thread (and there's probably more)

 

@wylie – hmmmm actually didn’t think of the “boutique” style agency. I was thinking if I was to do this, I want to go all out. Shake, change and make a difference to the industry . I firstly need to overcome the mindset of a “secure employment”

@D.T. – thanks mate and I will take up on your offer next time I am in SA

@Redom – Thanks mate. It looks like you have taken the leap and started your own business as well. How are you finding it, running the show and being your own boss?

Anyway I will be meeting with an agent this week. He will hopefully advise me the ins and outs of the industry and how he got to the point of owning his own agency. From there I will be on leave for a while and will use this time wisely to discuss with the partner and if this is the route I want to take, then the real work starts. Thanks again all for your kind advice.

 

This is what I hope to do and part of the reason I started my own. I worked for a big name one previously and didn't like how neither they nor my interstate PM's operated.

 

@theobserver - i also leaped from the public service, albeit, i really enjoyed my old job and the people i worked with but didn't enjoy the stability/shackles/ambition it had. Institutional structure can be great, but it can also limit you.

I say go for it. I certainly have no regrets. Develop a plan, hone it, and when you believe in it, you'll know your ready to jump. I met some american angel investor a few weeks ago, he likened it to jumping out of a plane without knowing theres a parachute. I little dramatic, but i get the reference.

As much as 'mindset' training is great, from what i've read, you've already got the core ones and a 'can do' attitude. Funny enough, imo, an over-emphasis on 'developing the mind' can lead to a lack of action/delayed action. Trust in your natural mindset/skills and tweak as you take action.

Being a small business owner demands growth, planning, time, work, etc. Working with individuals (rather than ideas/concepts that i did at Treasury) also is pretty motivating. Suits my personality/drive much better. Definitely an incredible challenge, so many new situations that come up that really tests your skill-set.

Pros:

• Purpose, its awesome to have it and thrive from it.
• Flexibility, i'm relaxed on a day to day level, but very focused on my goals. Too much rigidity doesn't suit me.
• Scalability. Oh this is the best. It promotes you to think big.
• Its yours - you define your brand. I love educating and macro level thinking. I'd love to be a mentor/educator/teacher. I've completely embraced this in this business and its the centre of 'my brand'. Play to your strengths, you'll enjoy it more and well harnessed, can be the real difference between you and your competition.
• Opportunity mindset - being a business owner promotes an opportunity mindset. I'm energised by thinking about how i'm growing, my next idea, how to add value, how to be different, how to help this person, etc etc etc. Always thinking, believing and going somewhere is awesome.
• Leading - i'm finding the opportunity mindset is a brilliant way to instill belief/passion for others. The energy you get (if it goes well) rubs of on others.

Cons:

• Can be lonely to start. Its financially hard to go out there and start with a team. I hated this. One of my first goals is to build a team. One staff, two, three...10...20. I want to lead a team and learn from them. It makes me better, its more fun, its energising. Once you start hiring and building your team, it gets easier though. I'm not sure individuals are meant to work alone, its in our nature to want to be around people. Lots of client interaction helps too. So does PC!
• Admin - my Sunday nights are gone. I need at least 3 hours to review weeks work, next week, accounts, compliance, goals monitoring, etc. Even with good systems, theres definitely more admin.
• Flexibility can be a double edged sword - i've been away once this year, i spent most of it on my phone/working. It can be hard to switch of mentally (personal flaw i guess).
• When things go wrong. The buck stops with you. Things do go wrong. Its life and the nature of the business. Someone will do a runner, there'll be damage, etc etc. You'll need to develop thick skin, be swift on your feet and learn to react quickly. Having good interpersonal skills, empathy and emotional intelligence will be absolutely paramount here.
• Saying no. You'll get to point where you'll need to do this (at least as a broker you do). I don't like doing it, but you'll need to if you want to grow the right way.
• Time out. I have quite a few friends doing their medical internships, they always seem so spacey to me. Like there with you but their also at the hospital thinking about whether they double checked the charts/dosage on their last patient. I find personal interactions/personal life can be a bit like that when your a business owner.

Hope this helps. All the best!

Cheers,
Redom

 

@Redom - thank you for the tips and setting out the pros and cons. I think you hit the nail on the head. My over thinking of the situation leads to a delay in my actions. In fact, I have been thinking about this idea for the last 2-3 years and the same concerns and fear are what stops me from taking this further.

Anyway just a bit of update, I have had the opportunity to talk to an owner of the agency who has been extremely generous with his time. He pretty much reiterated what was advised to me in this forum and also said overall it isrewarding and would not have it any other way.

I will now take everything on board, look forward to some annual leave for 2 months and will make my mind up by the time I get back.

Thank you all for the ongoing support, advice and will keep you guys updated.

Cheers
theobserver

 

Just thought I'd follow on from this, instead of creating a new thread.

I was notified today that I was successful in the real estate assessment. I am now in the process of completing the rest of the paper work to obtain my registration and will be giving my 4 weeks’ notice shortly.

I have since changed my position as I initially had planned to apply for the role as a property manager, but have decided that I will focus on being a sales agent. The agency that will take me on has given me the option at a later stage to work as a property manager, to improve my development in that area, the owner has also said he will share with me his knowledge and experience of starting your own agency.

So the plan is to tag along with a real estate agent every weekend to try and get the experience and knowledge while I am waiting for my registration. I would also be grateful to hear from other real estate agents, please share any advice, tips, reading materials, methods used to get listings, and techniques that you may have come across that makes you a step above the rest.

Thanks all for reading.

 

Good on you.
Why the sales route?
With the attitude you've shown I bet you'd be successful either way

 

Hi Jackson
Congratulations on your descision to transition into the real estate industry.

It's a rewarding career and I have learned a lot especially about myself in handling very difficult situations.

Property management and sales are relatively easy once you know the systems and how to handle people.

The biggest challenge as with any business is bringing in the business. You can always learn how to "do" the business but bringing it in is the stumbling block where many fail.

The key is persistence and position in the market place.

If you are beginning with an established company you will do well, I started off a brand from scratch, grew to 250 properties on a rent roll then got out of that business to begin another one again from scratch. The second one was created in a week including office space, licensing, branding etc and because it was my second one, it was much better than the first. I changed what did not work and implemented new strategies so that it all works efficiently. I'm still running the second agency.

Real estate sales are also a system to follow and I'm sure you will develop your own unique method that works best for your personality.

You will love the industry, all the best to you and Im certain you will do very well.
X

 

Just want to share one more thing - there are no competitors only teachers, I learned a lot from other bigger agencies when I was starting and still do.

We began selling properties off our rent roll and a many years ago I was given 5 listings in a week. I wrote the ads, ordered signs and started to do open inspections - no one was coming. Then I noticed a similar house down the street with lots of people attending inspections.

I went along and when the agent handed me a brochure I disclosed that I was also an agent and just wanted to find out why he was getting buyers in and I was not.

He asked me where I was putting my directional signs and I said "my what" lol I was very green in those days.

I then took him out for lunch and we went through the appraisal price etc (which he came up with the same sale figure as I did). He gave me some great tips and suggested that I schedule my inspections at the same time as his so that We can get the same buyers looking at both. Both got sold.

years later this same guy called me for another lunch meeting, he had just purchased a rent roll and I helped him establish it and gave him tips on charges, systems etc...

It's great that you are tagging along with someone but always feel free to ask others that are doing it, most would be happy to help. The more established agents have an abundance mentality and would be happy to see you succeed.

 

I dont think i could ever be an REA... all i would be thinking about is snapping up their good deals and not taking it to market...

 

@D.T. – I realise by having all the knowledge about the legislation and property management etc I won’t know how to sell it to my client. I wanted to focus on my selling skills such as communication, negotiation, how to deal with clients etc so it will teach me how to approach clients and discuss with clients the type of services my agency could offer/the point of difference between other agency and mine. I don’t know if its right but I will give it a good crack this year and review what needs improvement.

@Xenia – thank you for the tips and kind words. I think you hit the nail on the head, hence why I changed my focus as I wanted to learn how to bring in the business. I actually emailed another agency to see if I could tag along on the weekend with one of their agents, who has won multiple awards. Unfortunately I was declined of the opportunity L I wanted to learn from the best J

My concern is how real estate agents get their listings and I take it as the established agents rely on referrals to get their listings. I was going to start with door knocking to build up my list but unsure if this method still works. Are you able to advise on this method or any other methods?