Based on research and our own experience, we know that word of mouth is so important in finding the right professionals and companies to look after your investment portfolio. So how do you know when to refer?
Word-of-mouth is an important way for home owners to find good property specialists in their area, but how do you know when to refer your property manager to your friends and family? We look at the value of referrals and how to know when you should refer your property manager.
The Importance Of Referrals In Real Estate And Property Management
Conversations had around the BBQ on the weekend or at a family dinner might feel informal, but they can have a huge impact on the success of your property portfolio. It comes down to the weight we place on recommendations from family and friends, as we’re much more likely to trust the opinions and experiences of loved ones when it comes to a big decision like the management of our most valuable financial assets.
A CoreLogic report from 2015 titled ‘Perceptions of Real Estate Agents’ showed just how important these referrals are in property industry, both for homeowners and real estate professionals. Although the report focused on buying and selling home, the findings also apply to what we know about property management.
The research showed that 36% of people surveyed relied on recommendations from their friends when choosing an agent to work with, much more than the percentage who relied on the proven effectiveness of websites, signage and other advertising. This large percentage really highlights the importance of referrals in selecting the right professional for your needs.
Of course, referrals are also highly valuable to agents and property managers, and many companies rely on them for ongoing business and new leads. If you’ve been satisfied with the services of your property manager, you can make a big difference to their business by providing recommendations to friends and family.
When Should You Refer Your Property Manager To Family And Friends?
For referrals to be trustworthy and effective, they must be genuine, so you should only refer a property manager that you would happily work with again yourself. Consider if your property manager has provided an excellent experience and high-quality service at every step of the way.
The CoreLogic report found that vendors were more likely to recommend agents who 'championed' their needs, understood their personal situations, provided emotional support and went the extra mile to help with the property.
Does your property manager:
- Have your best interests at heart?
- Keep you in the loop?
- Communicate promptly and professionally? Are they happy to answer your questions?
- Know how to find the right tenant for your property?
- Know how to fix things for you when they go wrong with your property or tenant?
- Have the experience to provide you with a value-added property management service?
- Offer you an exceptional service that is good value for money? Note that this doesn’t always mean that they are the cheapest, but that their fee is worth the investment.
If you can answer yes to the above, you can feel confident in referring a high-quality property manager to your family and friends.
Referral Partners And Other Property Management Services
Another important part of the real estate industry is the referral partnerships many companies have with other professionals. For example, your property manager is likely to have great relationships with excellent tradespeople, mortgage brokers, insurance brokers and investment companies, meaning they can make strong recommendations for professionals of the highest quality to continue looking after your investments.
Understanding the breadth of your agency’s services is important in making sure you’re getting a really holistic service across your own investment portfolio, as well as being able to make good recommendations for a range of services to friends and family.