On first impressions the role of a BDM would look like it is to continue or establish the growth of a rent roll for the office that they work for. There are many ways that this can be achieved, both aggressively and also capitalising on the organic growth of the agency.
Your BDM should be working with the Sales Team’s and Property Management team on a daily basis forming those relationships so that the entire “team” is working towards the common goal, rent roll growth and supreme service. daily and working with also with the Property Managers.
The BDM role should ideally be only sourcing new managements, building relationships and networking with landlords and investors and establishing a sales system that works to grow the rent roll. Too often we see principals “drag” the BDM into too many property management duties and this takes them away form the core focus – new managements. A BDM will have a strong sales background, extensive knowledge of the Property Management industry and also be a person who can close a management deal with ease.
It is becoming for us to see some job opportunities come through where a principal wants to combine the role of a BDM to a Property Manager managing a portfolio. This will not work full-time and not allow an absolute commitment to the role of a BDM if they can only perform .5 or less of the role.
The functions of a BDM should be:
- Sourcing new business opportunities within the business either from sales department or property management department / leasing consultants.
- Maintaining and develop client / landlord investors relationships.
- Arranging and conducting market appraisals.
- Be at the forefront of all marketing and campaigns and projects that relate to Property Management. Implement new marketing and branding strategies for Property Management with the absolute goal of bring in further managements.
Can I afford a BDM?
This is an excellent question so let’s look at a case study of what is common in today’s market.
A good BDM will bring in 10 – 15 new managements a month so let’s work on 10 and do the maths on a management fee of 7% (ex GST) and an average rent of $400.00 per week.
After 11 months of hard graft you will have a new rent roll that’s bringing in approx. $3080.00 per week from management fees or if we annualise this $160,160.00 per year. Yes you will have to “fund” the BDM for the short term before they start to pay their way however this will not be for long and you will see real benefits in the second and subsequent years with the growth.
Remember this is going to bring you a new portfolio every year on an ongoing basis, compare the investment in a BDM versus having to buy a rent roll of 100 properties and the issues that this brings with it. So the investment of between $50 – $60K as a base plus incentives is really worth the effort if someone is serious about growing their rent roll.
Julie Davis & Neil Williams – Agent Dynamics
Like all industries Real Estate is no different, in that a group of people work together to achieve a common goal utilising both their innate and their learned skill sets. In property management teams there are typically two different “sections” requiring two different subsets of skill and talent.
The guys in the “Engine Room” look after the day to day management of the property and the associated tasks. These task include but are not limited to tenant selection, maintenance and accounting etc and involve a lot of process and systems skills.
The other requirement is to have someone out in the marketplace generating new business. The Business Development Manager or BDM. BDM’s require a totally different set of skills and talents to the rest of the team. They are the property management sales gurus. They require the ability to generate, nurture and negotiate.
Within Agent Dynamics we would steer toward someone who is a “Deal Maker” profile. Whilst a number of the different profile types would suit the BDM role Dealmakers have an innate talent for networking, negotiation, and conflict resolution. They also have workplace strength in market research and qualifying.
Presenting to potential landlords is not the place to practice your skills so the more natural talent the BDM brings to the table the greater the opportunity to grow the rent roll.
Profiling can help identify the innate talents that you need in the team. With each new management adding $4,000 to $5,000 to the asset value of the business why wouldn’t you utilise profiling to increase your chances of getting the right candidate first time up.