Policy: Owner Property Management Commission Commitment

Company Position: 

Property Providers’ vision is to “Help People Live Better” by being Sydney’s most flexible residential rental company.  This vision is driven by three core values: Passion, Performance and Partnership. This policy has been created in line with our guiding principle that all great long-term partnerships have a strong foundation of mutual respect, mutual reward, mutual investment and mutual risk.

Document Purpose: 

The purpose of this document is to clearly communicate Property Providers’ Policy in relation to competitive property management commission.  

Background:

We understand that like most industries in their mature stage of the life cycle, property management is competitive. As we operate in the more premium end of the market (i.e. Executive Leasing, Corporate Letting and Luxury Holiday Rentals), we are in the business of providing a premium concierge level service versus a commodity-centric utility for high value assets. Therefore, our owner investors naturally embrace a partnership approach versus a supplier procurement mentality. It is critical that our investors are confident that they are receiving fair and balanced value for money. To stand by and support our values, Property Providers is committed to being competitive when commencing new relationships with investors and their property. We feel that it is critical to be upfront as it relates our Commission Commitment and how it is structured to benefit all.

Policy Objectives:

  1. To deliver a premium owner experience as well as to effectively manage expectations at the commencement of a relationship.
  2. To provide customer confidence that Property Providers is competitive and meeting the market. 
  3. To educate investors as to the range of services that we provide to help enable better decision-making (i.e. selecting the right level of service to suit the customers’ wants and needs).
  4. To be clear regarding the principle and specific mechanics of our commitment, we are offering a consistent and scalable solution.
  5. To support the company’s guiding principle that all long-term relationships have a foundation of mutual respect, mutual reward, mutual investment and mutual risk.

Agency Policy:

  1. Property Providers will match any competitive property management commission provided that
    • the competitive offer is from an established, credible and local agency and is like for like (i.e. level of service, furnished versus unfurnished etc.).  Evidence of the competitor actually viewing the property in person is required so that we can be confident that it was effectively assessed.
    • the timing of the competitive proposal and Property Providers is within a reasonable gap (i.e. no more than three months) and is within the same season (i.e. winter versus summer months).
    • the owner shares and/or forwards the entire competitive proposal and property management agreement (signed).
    • the relationship is new (i.e. not retroactive on existing management).
    • the agreement between the investor and Property Providers is exclusive.

Mechanics:

  1. The owner investor requests/calls Property Providers Commission Commitment and shares competitive material for review.
  2. For the request to be considered, the property must have been personally inspected by a member of Property Providers’ staff in order to adequately evaluate the property’s current state, immediate surroundings and features and benefits.
  3. All requests are to be escalated with a member of the agency’s senior management for review/approval.  All proposal commission adjustments or approvals must be communicated by a Senior Manager directly to the investor.
  4. Where/when Property Providers does adjust our property management commission, we will do so in writing and a revised exclusive management agreement will be sent to the investor for their approval/signature.
  5. All revised offers are valid for three working days. Should the investor not return the management agreement signed by this point, Property Providers reserves the right to rescind the offer/agreement.
  6. To support our corporate culture and well-being, Property Providers reserves the right to not participate in price matching should we feel the property is not appropriate for our portfolio or if we feel there is a misalignment in values between the agency and the investor. In these cases, it is best for both parties that the property is awarded to the competitive agency.
  7. The intent of our Commission Commitment is to support a spirit of transparency, authenticity, competitiveness as well as partnership. Therefore, we will honour this pledge once and will not engage in perpetual price fighting.

Effective Date:  This policy is effective February 1, 2020.

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