The housing market is constantly going through price hikes and lows, and it's up to the real estate agent to work efficiently when managing expenses. Let’s explore why real estate agents need automated expense management to manage expenses for real estate agents, reduce admin burdens and thrive in their competitive market.
The Real Estate Industry Has Flourished Lately, but Why?
Real estate in Australia thrives as residents, tourists and foreigners seek to experience the best things the country offers. With a large number of people migrating to Australia every year—students coming to study, people travelling on working holidays and professionals coming here to work—there’s one industry that has seen both the boon and the bane: the real estate industry. Here are three reasons why the real estate industry in Australia has flourished.
1. Demand is escalating for both rental properties and homes for sale
The real estate market in Australia is becoming more competitive as the demand rises for both properties for rent and sale. According to Emil Kozina, a real estate buyer’s agent, this growing demand “necessitates a strategic approach to investments.”
2. Home sales are on a growth trajectory
Key cities in the country are listing positive numbers. For instance, Sydney has been ranked as the ninth in the world for sales of properties.
3. There’s an influx of migrants
More than 700,000 migrants are forecast to flock to Australia by the end of 2024, which inevitably means a significant increase in population and housing needs. News.com.au explains that this adds to “the squeeze on the nation’s already very tight rental market.”
What Are Examples of Real Estate Agent Expenses?
Meeting with multiple clients a day means driving to various locations, managing expenses for real estate agents and spending on typical fees for property management. Below are some examples of real estate agent fees for selling a house or renting it out.
1. Driving clients to viewings
It’s common for real estate agents to drive clients to property viewings to provide convenience, guide them to the property and build rapport. This is especially true when clients do not have easy access to public transportation or are not familiar with the area.
2. Purchasing client meals
Real estate agents may choose to purchase meals for their clients, especially when their meeting reaches mealtime during a whole-day tour or viewing of a property.
3. Staging a house for showings
Staging a house for showings includes arranging and decorating the property to make it more appealing. Due to this, real estate agents may spend money on property costs such as staging services to enhance the look of the home.
4. Paying for parking tickets
Going to different properties will require parking your car which, inevitably, requires paying for parking tickets. If the agent operates under a brokerage, they may follow specific policies about paying for parking tickets. However, if they’re classified as an independent contractor rather than an employee, they may be responsible for covering the cost themselves.
5. Paying for phone bills
Like parking tickets, phone bills are an inevitable part of the life of a real estate agent. Aside from client communication, real estate agents also use their phones for lead generation, marketing and promotions.
How Can Expense Management Increase Real Estate Agents’ Efficiency?
Being a real estate agent involves dealing with documents such as receipts and rental property spreadsheets, but what if there’s a way to make things easier? Expense management can help increase the efficiency of real estate agents without the involvement of manual processes and physical papers. Here are specific ways expense management can help.
1. Tracking mileage
As already established, real estate agents drive to various locations, which means more mileage. Tracking their mileage using an expense management platform will make it easier for them to pinpoint their location from the starting point to the endpoint.
Tracking one’s mileage with an expense management app will help save a huge amount of time and allow the agents to focus on other tasks.
2. Tracking receipts
Reimbursements are likely part of their company policy, which means real estate agents need to take good care of receipts. With an expense management app, real estate agents can simply take a photo of the receipt and let the app get the relevant data. This ensures that their expenses are smoothly added into the system moments after purchase, making reimbursements so much easier.
3. Matching receipts
Imagine the time you save when the app can do automatic receipt matching. An expense management app’s smart receipt matching technology can automatically pair receipts to their correct credit card purchase. ProSpend, in particular, has the expertise and knowledge of the different card and bank feeds available in Australia.
4. Not spending out-of-pocket
While many real estate companies have reimbursements in their company policy, it doesn’t always have to be that way. Instead of the real estate agent spending out of pocket and being reimbursed later, they can simply use the company’s virtual cards!
Virtual cards don’t only mean the agents’ convenience; they also mean transparency for the company. The employer will have access to the spending with real-time visibility and can create virtual cards uniquely tailored to individual user needs.
Real estate management fees for rentals and sales can be a bit of a hassle, but they don't have to be! Expense management apps handle the admin work that real estate agents previously had to manually deal with. With a streamlined process developed by expense management apps, real estate agents can focus on their core responsibilities and enhance overall productivity and profitability.
