2011, says Bill Rawson, chairman of Rawson Properties, is likely to be remembered in the property sector as the year in which improper conduct and misappropriation of funds by several of the industrys leaders did much to tarnish their reputations and that of the industry in general.
This, he said, was doubly regrettable because many of those who had been implicated had spent years establishing their reputations and building good brands. The damage to themselves and their companies, he said, had been increased by the general publics ability to comment and communicate to the world on these matters via the electronic media. In one case a dedicated blog had been started just to air grievances about one operation.
Also damaging to the industry, said Rawson, had been the lack of efficiency, the changes and staff suspensions in the Institute of Estate Agents and Estate Agency Affairs Board. Fortunately, he said, these are being dealt with.
It would, however, help greatly, said Rawson, if the Department of Trade and Industry communicated with the industry leaders rather than implementing new legislation without much consultation.
In the circumstances, he said, those brands with clean images are attracting clients and staff formerly linked to the 'damaged' groups '“ but, he warned, it will require continual vigilance to ensure that one or two operators within those groups do not let the side down.
'2011 has shown again that the independence and flexibility of the franchise system do attract the bold entrepreneurial types that real estate marketing needs. However, it is also clear that a franchisee who is not properly trained and mentored and who is possibly able to operate on systems of his own and without much feedback to his head office can be dangerous. The strength of good franchising lies in its ability to provide the franchisee and his agents with systems that simplify and speed up their work while at the same time revealing quickly to the head office any area where there is weakness or misconduct'
Any agency operating a trust in its own name, added Rawson, should be questioned.
'The golden rule is that trusts in which clients money is held should be independent and preferably associated with attorneys. Even these have on occasions proved vulnerable but it is always safer if the trustees are not directly linked to the agency'
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
