Property Social Enterprise ‘Maximises’ Return for Landlords
Tuesday, 24th May 2016 at 11:45 am
A rental property social enterprise, with profits assisting disadvantaged women and their children, has urged landlords to “maximise” their return.
Property Initiatives Real Estate was created as the social enterprise arm of Not for Profit Women’s Property Initiatives (WPI).
It operates as a full-service real estate agency, and all profits help WPI build houses for Melbourne women in need.
Property Initiatives opened its doors a year ago, but for the first time they are now targeting investment property owners.
CEO of WPI and Property Initiatives Jeanette Large said, in the past, well-meaning landlords had asked whether the organisation’s clients could live in their property.
However, Large explained that this would lower the rental return, which was not viable for many people.
She said the social enterprise arm of the organisation provides an ethical rental option without reducing financial returns for owners.
“When you can say to a landlord, you can still get your market return, you can still keep your tenant, but you can also know that any profits that are made by the real estate agency that is managing your property will come across to a Not for Profit organisation that’s assisting women and children in need, that’s great,” Large said.
“It’s a win-win. If they’ve got a mortgage they’re paying, if they’ve got an investment… that’s the way it stays for them, but they’ve engaged a real estate agency that is ethical, that has a purpose that is creating value.
“It’s maximising the return. Their return is money, but their return is also social impact, and social value.”
Property Initiatives had already partnered with building giant Grocon to provide property management services for an apartment complex in Carlton, Melbourne.
While Large said the property management side of the business was strong, she wanted to grow its reach by being a viable competitor in the real estate market.
“As with any new business it will take some time for us to be generating that profit,” she said.
“Our social enterprise real estate agency is out there competing in the real estate agency market, so landlords do not have to accept a reduction in their market rent… but landlords would also know that any of the profits that are created from our real estate agency will come across to Women’s Property Initiatives.
Looking forward, Large also said she would like the social enterprise to also move into residential house sales.