POWERED WITH LOVE MAGAZINE Volume 3

VOLUME 3

02/2022

OPERATION WIPE OUT

DO YOU HAVE

THE RIGHT LEADERS?

COVID WHAT’S YOUR PLAN? THE BEST TIME TO FIX SOMETHING IS BEFORE IT’S BROKEN Powered with LOVE Stephen Cromarty

1

FORWARD IT WON’T BE LONG AND WE WILL BE ASKING WHERE HAS THE YEAR GONE! YES, I AM NUTS! IT’S FEBRUARY, HOWEVER, NOW IS THE TIME TO CAPITALISE ON THE MARKET AND GET AHEAD ON YOUR ANNUAL PLAN. The number 1 thing you must do is have your team / company on board, “What’s in it for them?”

I already said this in the last edition, that’s how important it is!

Your company targets needs to be everywhere you look, everyone must know what the company targets are and what the rewards are. 2022 BELONGS TO THE PREPARED!

CONTENTS. 1. WHEN THIS MARKET IS GOING TO STOP?

2

2. DO YOU HAVE THE RIGHT LEADERS?

2

3. YOUR GREATEST ASSET 3

4. PROPERTY MANAGEMENT 4

5. OPERATION WIPE OUT 5

6. COVID / WHAT’S YOUR PLAN? 6

7. PRICE ADJUSTMENTS, NOT A THING OF THE PAST ANYMORE

7

WHEN IS THIS MARKET

GOING TO STOP? IT MAY OR MAY NOT HAVE SLOWED DOWN, however, one thing is for certain the market has not stopped. I think it is really important we accept this is not going to last. At some point the market is going to contract and those who expand their market share prior to this happening will continue to prosper!

Remember the solution to impending market are: 1. More homes for sale 2. Lower prices REGARDLESS OF WHAT’S DRIVING THE CHANGES, I.E, FINANCIAL CHANGES (POLICIES), INTEREST RATES, LOWER DEMAND. THESE TWO KEY FUNDAMENTALS WILL SEE ANY REAL ESTATE SALES BUSINESS PROSPER!

DO YOU HAVE

THE RIGHT LEADERS? THIS IS A QUESTION WE ASK OURSELVES A LOT, HOWEVER, IT IS NOT AS DIFFICULT TO ANSWER AS YOU THINK. Are the leaders able to deliver on the results and projects attached to the area of the company they look after? What is the client and community feedback? What is the staff engagement and level of happiness?

What’s their ability at growing and developing their people and their area of the business.

HOW YOU ANSWER THESE QUESTIONS WILL REVEAL IF YOU HAVE THE RIGHT LEADERS AND WHERE THEY NEED DEVELOPING.

2

YOUR

GREATEST ASSET

YES, “YOUR GREATEST ASSET IS YOUR PEOPLE, SECOND TO THAT IT’S YOUR RENT ROLL”.

However, the greatest asset you have in the BUSINESS WE ARE IN is your rent roll. With this being the case it surprises me when we look into the runnings of this part of the business, or should I say how often we don’t! When was the last time you conducted a health check of your rental roll and what does a health check look like for you?

How many times I hear about the problems that are found, when someone leaves, and the severity of the problems for that matter. What does a health check look like? Well, here are some basics to look at: 1. Properties collecting rent 2. Properties not collecting rent that have not been archived 3. Arrears (total arrears) 4. Frequency of routines 5. Repairs response time / idle time 6. Average fee 7. Audit of the CRM against the MMA and lease 8. Rental increase frequency and amount 9. Net gain / loss In addition to the above we also recommend obtaining a valuation on your own rent roll. This is something we do at least every 24 months. This acts like a forensic audit and ensures your greatest asset is as you expected or hopped.

3

PROPERTY MANAGEMENT WHAT’S YOUR PLAN? HOW MUCH HAVE YOU SET AS YOUR BUDGET TO BRING IN NEW BUSINESS? What’s your plan? How much have you set as your budget to bring in new business? I have said it before, “we purchase other agencies rent rolls at a premium price, but how much do we commit to spending on growing our business organically?”

The answer to this question is typically nothing. I mean a proper budget , i.e. $100,000, $50,000, or even $20,000 and where is it being spent, and how many managements do you expect to obtain from your budget / plan. So, it’s February now is a great time to set the plan and START! A simple plan could look like the following:

FEBRUARY / MARCH.

Offer incentive to tenants to refer landlords

APRIL / MAY / JUNE

Offer incentive to landlords to refer new landlords

JULY / AUGUST / SEPTEMBER

Established client campaign / referral program

OCTOBER / NOVEMBER / DECEMBER

Contact local builders, workers / referral program

In your plan have a set budget for the number of referrals, who’s responsible and what are your key measurables. Imagine an extra 20-30-40-50 managements at just 1/3 the price! Now that sounds like a good business to me!

4

OPERATION

WIPE OUT

WHAT’S OPERATION WIPE OUT?

Sounds military doesn’t it? Well, what it is, is a well thought out strategy that typically brings together either all team members / or specifically sales staff only, where they put their entire focus on finding listings.

The best time to conduct an operation WIPE OUT is at the start of every quarter, and in particular, RIGHT NOW! Why? It will set you up for the first half of the year financially and will create the momentum to push you through the first 6 months. The results achieved in an operation WIPE OUT should well surpass a normal month. On one of our most successful operation WIPE OUTS we listed 106 listings with just 3 listing agents and only 6 people in our team. You can read about our success which was documented by Lee Woodward, simply google “LOVE REALTY A CULTURE OF ABUNDANCE” and you will find the article.

So, let’s look at the plan that will deliver the results!

An operation WIPE OUT plan might look like the following: 1. Letter box drop- “Please phone me about some buyers I may have for your home”.

150 per agent per day.

2. Message to all landlords- “If I had a buyer for your investment property, at what price would you think to yourself, “I am cashing in” (Then have someone call behind this message i.e. 50-80 connections per day) 3. 10x10x10 all your JUST SOLD / JUST LISTED properties.

4. Phone all your past appraisals- “I was just out with some buyers today, I was wondering if you would like me to see if they would be interested in your home before I showed them something else?”

5. You could run a special media campaign, the campaign obviously promoting listings with your agency, i.e. List your home with LOVE and test the market for FREE! Now you have your plan, you need to set the actions every day, with a number of listing appointments to be achieved every day. This is to be high intensity and the results “HIGH”.

An example may be 5 days (one week), 100 listing appointments, prospect and work the plan up until 1pm. Another idea might be for the entire month, or for 2-3 hours per day for the entire month.

I GUESS IT COMES DOWN TO HOW SUCCESSFUL YOU AND YOUR PEOPLE WANT TO BE. GOOD LUCK!

5

COVID

WHAT’S YOUR PLAN?

I THINK IT IS SAFE TO SAY YOU ARE GOING TO REQUIRE A COVID PLAN FOR A LOT LONGER YET! WHAT IS A COVID PLAN AND WHAT’S THE PURPOSE? Well, most people answer, it’s to keep the office open and to keep us all safe, yes, that’s true, but what about results and profit? You see, your COVID plan should ensure the RESULTS continue as well as keep you open and safe. A COVID plan should include how you are making the results, where the results are coming from, what the expectations are, reporting and tracking. I think it is important introduce team rewards to recognise individuals efforts around the activities that drive results it keeps your team engaged and focused.

A checklist to work through building your COVID plan might be: 1. Dividing of teams

5. Keep same standard of dress code

2. Office testing policy (RAT tests)

6. 24 hour targets

3. Team competition (team A against team B)

7. Team incentives / individual incentives

4. Morning zoom / Office meeting

8. Reporting and expectations

In the past companies have used the restrictions as down time, companies who continue to do this will see their profits plummet.

UNDERSTAND THIS, THE QUALITY OF YOUR PLAN AND PREPARATION WILL DETERMINE HOW WELL YOUR COMPANY / TEAM PERFORMS IN WHAT IS NOW THE NEW NORM!

6

PRICE ADJUSTMENTS,

NOT A THING OF THE PAST ANYMORE THE LAST 24 MONTHS HAS SEEN PRICE ADJUSTMENTS BE A THING WE USE TO DO, HOWEVER, NOW, VENDOR MANAGEMENT AND THE ABILITY TO GIVE YOUR OWNER THE CONFIDENCE TO ADJUST THEIR PRICE, WILL BE KEY THE INGREDIENT IN GETTING MOST HOMES SOLD THROUGHOUT 2022!

My business partner put together an audio called “A price reduction a day” which was released on HOT TOPICS. This was used by thousands of agents around the country to help their owners sell!

Here are some of the key activities to vendor management that will give your owners confidence to adjust their price; 1. Give them feedback daily (activity, calls, inspections, other sales, competition, new listings).

2. Tell them what you are you going to do to get them their price.

3. Make your calls to your owners after hours (this shows your work ethic).

4. Send a vendor report every week (i.e. on Monday send - internet viewings, enquires, phone & email, inspections including feedback, examples of new listings & sold properties).

5. Meet with your vendors every 7-14 days for a face to face meeting where you go through the report and feedback.

6. A general market wrap should go to all owners listed for sale every week from the company to lay the ground cover for your team.

If you bring this level of vendor management into your business you and your team will be asking yourselves “ What market change?”

Remember “THE BEST TIME TO FIX SOMETHING IS BEFORE IT’S BROKEN”.

1