Rental management: a pillar of resilience for tomorrow's real estate

A lifeline in turbulent times

Recent history has shown us that during periods of real estate market downturn, agencies focused exclusively on transactional services have often been the first to suffer. Conversely, those that have developed a rental management business have been able to rely on the regularity of these revenues to weather the storm. It's no coincidence that the most resilient networks today are those that have successfully diversified their revenue sources.

The figures speak for themselves: a well-structured rental management business can increase an agency's turnover by an average of 25%, with the considerable advantage of generating recurring, predictable income, independent of market upheavals.

A booming market

The current context creates particularly favorable conditions for the development of this activity. The housing shortage, coupled with the ever-increasing complexity of rental regulations and the growing demands of tenants, is pushing more and more owners to entrust the management of their properties to professionals.

This trend affects individual owners as well as institutional investors and businesses, significantly expanding the clientele of real estate agencies. This clientele is also proving more loyal thanks to the regular interactions involved in rental management, with retention rates 30% higher than those of a pure transaction.

A virtuous circle with transactional activity

Far from being disconnected from transaction activity, rental management creates a true synergy with it. Investor buyers naturally become potential clients for management, while regular monitoring of managed owners opens up opportunities for new transactions when they decide to adjust their assets.

This 360° approach also allows for the development of in-depth knowledge of the local market, a key asset for positioning oneself as an expert with clients. Agencies offering this comprehensive service clearly differentiate themselves in an increasingly competitive market, offering tangible added value that goes far beyond traditional intermediation.

The risks of inaction: don't get left behind

Agencies that continue to focus solely on transactions risk being overtaken by the competition in an increasingly volatile market. Failing to evolve means missing out on the opportunity to protect themselves against economic crises and regulatory changes.

What if you don't feel ready? There are solutions.

Of course, getting started in rental management can seem intimidating for agencies that have traditionally focused on transactional matters. The profession is technical, regulated, and sometimes perceived as time-consuming. But not pursuing it due to a lack of in-house expertise would be a strategic error. Today, there are solutions that allow you to get started quickly and smoothly. This is particularly the case with outsourcing accounting (for rental or condominium management), which allows you to entrust this aspect to experts while focusing on what matters most: acquiring new clients.

Solutions are already supporting many agencies in this transition. They offer a secure, structured, and scalable framework, guaranteeing impeccable service quality without increasing internal costs. A simple and effective way to lay the foundation for a profitable rental management business.

An asset with long-term value

The impact of rental management on the company's valuation itself deserves to be highlighted. In times of agency sales, the figures speak for themselves: while a transaction activity is generally valued between 0,2 and 0,3 times turnover, and rentals between 1 and 1,2 times, rental management reaches multiples of 3 to 3,2 times turnover. A significantly more valuable professional asset for managers who have made this strategic choice.

Digital transformation, a performance accelerator

The emergence of digital solutions represents an additional opportunity for property management professionals. According to the Real Estate Professions Observatory, these tools can reduce operational costs by 15% while improving property management efficiency by 20%. Digitalization thus makes it possible to reconcile quality of service and profitability by automating time-consuming tasks to focus on high-value customer relations.

Rethinking your model to prepare for the future

For agencies still focused exclusively on transactions, the time has come to rethink their business model. Developing a property management business not only represents a short-term growth opportunity, but also constitutes a true professional life insurance policy in the face of market uncertainties.

This diversification certainly requires an initial investment in skills, organization, and tools, but offers a rapid and lasting return on investment. More than just a simple evolution, it represents a profound transformation of the real estate agent's profession, moving from the role of one-off intermediary to that of long-term wealth advisor.

The time to act is now!

The time has come to take control of your future. Diversify your activities, secure your income, and position yourself today as a key player in the real estate industry of tomorrow.

Tribune by Charles-Antoine Perichon, ADB Market Director at Orisha Real Estate (LinkedIn).