When meeting new landlords or tenants, we often receive comments such as "We hadn't heard of you before". This is understandable - our family-owned and run business is far from a household name, and that's fine with us!
But let's reflect on this. Does being a "name brand" in real estate really translate into superior service or reliability?
Research Shows Most Real Estate Agents Are Terrible At Property Management
The consistent high turnover of staff, lack of motivation and lack of experience of property managers in Australia is not just anecdotal, it is backed by research.
Just some of the findings from Rockend and Elite Agent's 2018 Voice of Australian Property Management Report, a nationwide survey of 1,034 property management professionals, revealed:
As the report concludes, "When employees are disillusioned and unhappy it impacts training costs, onboarding and loss of business knowledge resulting in a poorer service to owners and tenants as teams constantly struggle to be on top of their workloads".
Reasons Most Real Estate Agency Brands Are Well Known
Almost every established real estate agency brand in Newcastle is well known to the public. Here are just some of the reasons why:
Of course, other marketing methods are used, but these are the main drivers which build awareness of real estate brands in the local market.
Does Being A "Name Brand" In Real Estate Translate Into Superior Service?
In a word, no. Here are just a few reasons why.
Service Quality Can Decrease With Company Size
None of the above marketing methods provides evidence of superior service or reliability. At best, they provide an indication of the agency's size. And as many company founders have attested through time, a great culture, job satisfaction, attention to detail and quality of service often deteriorates as a business grows.
Staff Turnover Is High Among Corporate Real Estate Agencies
As a result, real estate agencies are renowned for having very high staff turnover. We have met countless investors who have worked with a range of corporate real estate agencies in the past, and chosen to leave the "big name" brand because the great property manager they once had has now left. (As of 2019, Carnelian Property Management has had no staff turnover since its operations commenced in 2011).
Meetings Should Take Place At The Location Most Convenient To The Investor and Tenant
Instead of following the established norm, we do not have a designer-styled office in a main street location. Why? Because we are in the business of managing other properties. We meet our investors where they want to meet. We meet our tenants at the properties they want to rent.
Our business expands largely through positive referrals and word of mouth recommendations, rather than through mass marketing, running competitions or heavy discounting. As a result, we continue to grow at a steady and sustainable pace, without compromising on providing excellent service.
How Do You Know The Level of Service You Will Get From Your Property Manager?
If you're an investor considering changing your property manager in Newcastle, take a look at the reviews of your shortlisted property management companies on Facebook and Google. These are the first places most disappointed landlords will voice their concern over a company's service, while even delighted customers rarely leave positive comments for a business. A number of positive reviews and low negative comments provides a good indication of the level of service you could expect from the agency should you choose them.
Remember, it's not the brand that leases the property, it's a person (or a team of great people).
Carnelian Property Management Newcastle NSW
We are a family-owned and run Newcastle real estate agent offering expert property management across Newcastle and Lake Macquarie.