As a broker, you are often relying on others to do the things that bring income to your business. But what if you could bring a more steady, reliable, and consistent income in as well? To survive and be successful in this business, you need to make sure you have several different streams of income. If possible, some of those streams should be things that don’t have the strict deadlines of a real estate agent. Try to find things you can do at different hours of the day, and from anywhere.
JoEll Abbott of Remax Whatcom County is a broker who really knows how to diversify her income streams. Along with being a Locker Room Coach, she is also a full-time realtor and broker, owns an HOA company, and a property management company. She has perfected the art of bringing the many aspects of a business together to benefit her in multiple ways.
For example, as a property manager, she receives a certain percentage of the rent she collects, every month. Typically, this is around 8%. She focuses on creating a reputation of being fair with both tenant and landlord. She wants to be an advocate for both. In this way, she creates happy clients, and ample referrals. A side benefit of this is that the rent is far more likely to be paid when there is a good relationship between the property manager and the tenants.
HOA management pays between $15-50 per door within the HOA. There is very little overhead, which helps keep costs down. Managing an HOA can be tedious and can sometimes feel like babysitting. You have to do the mundane work of knowing what CCNR’s and by-laws are, and sometimes you manage fights between board members. Beyond that, you might spend 10 hours a month paying bills.
JoEll is always looking for other ways to add in-house service to existing customers, and to increase the portion of the pie that she can profit from. For example, property management and maintenance, repairs, and cleaning often go hand in hand. To benefit from this, she is creating companies to be able to provide all of those services. In addition to offering these services to existing clients, she will also offer them to other brokerages. But she hasn’t stopped there. Even her husband has gotten his professional photography license, so he can take photos of her listings! He also hangs her signs!
For software, JoEll uses Buildium, an online cloud-based accounting program for owners and property managers. Through this platform, everyone can pay rents, dues, and access relevant documents.
If you haven’t been thinking of ways to diversify your income stream, it’s not too late to start! It’s time to brainstorm which services you would be best positioned to offer, and then make a plan to start doing it!
If you would like to learn more about how to build a multi-point revenue business, or to learn more about Explore My Town and MyTown Connects, send an email to PartnerSuccess@ExploreMyTown.com
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