I recently had the pleasure of hosting Sarah Cincotta, a seasoned professional in the real estate industry, on my show. We had an insightful conversation about her journey, the challenges in the property management industry, and her current work in empowering business development managers (BDMs). Here's a recap of our discussion.

A Background in Real Estate

Sarah's journey in the real estate industry began as an assistant property manager. Over time, she transitioned into business development, eventually launching her own business, Rise with Sarah. Her mission? To support and empower BDMs in property management. Sarah works with a diverse range of BDMs, from industry newcomers to seasoned professionals.

The Isolation of BDMs

During our conversation, I highlighted the isolation often felt by BDMs. They serve as the bridge between property management and sales, yet lack the strong community that property managers enjoy. Sarah agreed, emphasizing the importance of providing support and strategies to BDMs to help them feel connected and part of a community across Australia.

The Three Challenges Hurting the Industry

We then delved into the three main issues affecting the property management industry: reducing fees, not charging for services that should be charged for, and the detrimental effects of comparison.

Reducing Fees

Sarah observed that well-known brands and established businesses in local areas are undercutting fees, reflecting poorly on the industry. She noted that some business owners haven't properly assessed their break-even costs or profit and loss, leading them to set fees based on assumptions rather than solid financial analysis. We discussed different ways businesses can structure their commission payments. My team, for instance, has a set amount per property, while Sarah has seen businesses use a percentage of the annual income as a commission. We agreed that aligning the commission structure with the revenue and fees charged to clients is crucial.

Not Charging for Services

We also touched on the importance of charging for services in the property management industry. For instance, Sarah was one of the first to charge for pre-purchase inspections, which elevated her brand and attracted more clients. We also discussed charging for renovation services. I shared that my team has been taking baby steps in this area, offering a free option for works under $10,000 and charging for subsequent quotes or higher maintenance clients. Sara shared her experience of managing a $100,000 renovation for a property left in a bad state by tenants, emphasizing the effort and energy she put into managing the renovations and liaising with tradespeople.

The Detrimental Effects of Comparison

Sarah and I agreed that comparing oneself to others can be detrimental if it leads to negative thoughts and doubts. However, I see comparison as a positive tool when used correctly. She emphasized the importance of awareness and empathy when it comes to comparison, highlighting that everyone's reality and perception are different.

We also discussed the role of social media as a marketing tool and the struggle many people face in confidently showing up on these platforms. She shared a personal story of a girl who compared herself to her and felt insecure about her own appearance. She encourages people to start somewhere and not let comparison hold them back from sharing their opinions and perspectives.

Our conversation was enlightening, shedding light on the challenges and opportunities in the property management industry. Her insights serve as a reminder of the importance of charging appropriately for services, the need for transparency in business operations, and the power of community in overcoming isolation. As we navigate this industry, let's remember to respect each other's journeys and avoid negative comparison, focusing instead on growth and improvement.