The difference between outstanding Property Managers, and successful Business Development Managers

With the turn in the Real Estate Sales market in 2011, I have noticed many of my clients are recognising the value of their rent roll and have decided to employ Business Development Managers to proactively grow this valuable asset. As the popularity of Business Development Managers (BDM’s) has increased I have found myself discussing with a number of clients what type of candidates make great BDM’s. Most clients want me to find them a fantastic Property Manager with great references in a Property Management role who now wants to do Business Development Management. Surprisingly, I have found the best BDM’s are often not ex-Property Managers. Or if they did come from a Property Management background, were not particularly great at it as they tend to lack attention to detail.

Great Property Managers are nurturers, successful BDM’s are great sales people, which is a totally different mindset. The personalities and motivations of outstanding Property Managers, compared to successful Business Development Managers are often as different as chalk and cheese.

I have met many excellent Property Managers and what sets them apart from the pack, is they really care about people. They want people to like them. For a good Property Manager getting an unsolicited testimonial from a happy client is the highlight of their week. They don’t like to push people, which is why many Directors complain as their Property Managers won’t even ask landlords if they have any other properties they could manage. These Property Managers gain listings by delivering such a high level customer service that their clients decide to bring their other properties over for them to manage – they don’t like to ask. PM’s will often take rejection quite personally. If they hold a listing presentation & don’t secure the listing they will take this to heart, desperate to understand why the landlord didn’t like them. When I ask Property Management candidates what is important to them in a new role they will usually list a nice team environment, organised systems & procedures & colleagues who they ‘connect’ with.

Property Managers often don’t see commissions as ‘real money’. They only see their base salary as the income they will be making over the year, even if they are earning commissions for new business they are already bringing in from referrals etc, they tend not to include these commissions when discussing their salary. This is why attempting to convince a Property Manager to accept the lower base salary of a BDM, despite the fact they will actually be earning considerably more than they were on a PM’s base is such a difficult task. Property Managers know what they are worth and won’t accept less than that figure, but they are not only chasing the dollar and seeking the highest potential salary in a new role.

Great BDM’s on the other hand are fantastic sales people. They are like a dog with a bone, they are driven by the dollar and don’t take things too personally. They have no hesitation proactively hunting down leads even if that means picking up the phone, making cold calls and being rejected fifty times before they get in a door. Once they have a listing, they are intent on leasing the property, adding it to the rent role and collecting their commission. They often see administration & paperwork as a waste of time as it is taking up time they could be out there, chasing leads & getting results. If BDM’s have come from a Property Management background they may more often than not have been particularly great Property Managers, as they tend lack attention to detail and not leave a solid paper trail. They are numbers people who are happy to work long hours to make the big bucks. When I ask BDM candidates what is important to them in a new role they usually only focus on one thing; money. They want a job with a company who has a strong reputation in the area which (they recognise) will help them to make as much money as possible.

BDM’s don’t usually have an issue with a lower base plus commissions, as long as it is clear what the commission structure is and how the agency plans to support them (marketing etc) so they can quickly start earning decent commissions. A table showing exactly how much they can earn if they hit specific targets is often a big draw card for these candidates as they can see in black and white exactly how much they can be earning if they succeed.

Obviously there are exceptions. I have met eight outstanding Property Managers who went on to be highly successful BDM’s in the three years I have worked in Real Estate Recruitment but these candidates are certainly an exception, not the norm. For this reason, agencies who decide to combine their BDM role with a reduced portfolio will often find they end up with someone who is so focused on maintaining the small portfolio they are not proactively growing the rent roll; or someone who quickly gets results on the BDM side, but is receiving complaints from tenants/landlords who’s properties they are managing.

Recognising these definitive psychological traits and drivers that clearly differentiate a Property Manger from a Business Development Manager is the key to success in recruiting for longevity. The process should always be about adding value to a business to ensure its’ growth. The value elicited from this process is infinite in the case of placing an insatiably hungry BDM within an agency allowing for huge potential to grow. The same applies when placing a detail oriented Property Manager who nurtures strong relationships and understands the value of delivering top customer service to landlords and tenants alike.