Grow your rent roll: Find a great BDM, and keep them
A rent roll is the bread and butter of any agency. It will give you the cash flow you'll need when sales are slow and it is also the tangible asset you'll rely on when you need to either expand or sell. Growing the rent roll should be one of your top priorities as an agency owner and the best way to grow is by finding (and keeping) a great Business Development Manager (BDM).
There are a few basics that are often overlooked when it comes to BDMs so let's look at a few strategies to help you get the most from your team.
Implement strong incentives
Typically BDMs receive a base salary plus earn additional commissions for securing new business. As there is no set formula for how an agency can structure these commissions often they try and get creative. Keeping bonus calculations simple will ensure you and your BDM can easily understand and forecast the figures. If you ask the successful Principals we work with, the general consensus is to offer a commission that is proportionate to the Average Annual Managed Income generated by the property they have signed up. This keeps your outgoings in line with revenue plus rewards the BDM for securing premium properties.
One thing that is often not considered is rewarding your team for securing peripheral fees on their agreements - like full rate letting fees, admin fees or any other peripheral fees your agency requires to run profitably and efficiently.
Setting and monitoring KPIs will give you a clear idea of how your BDM is performing. It will not only allow you to forecast growth but will give them an idea of your expectations plus motivate them to hit and even exceed your targets. Be mindful of setting targets too low as you might be giving too much away too early. On the other hand, if they're set too high and unrealistic you will get your BDM offside very quickly. We advise looking into the performance of other agencies/BDMs and finding a structure that would fit in with your business.
Feed them leads!
A BDM is not there for lead-gen or marketing - they are salespeople and converting leads is the best use of their time. Develop some peripheral marketing strategies to ensure they have a consistent supply of fresh leads. Sales enquiries are a gold mine for prospective landlord clients so that's a great place to start.