Key tips for a successful delegation of authority

Key tips for a successful delegation of authority

Delegating mandates between real estate agencies is a common practice in the industry, allowing for maximum exposure of a property and increased sales or rental opportunities. However, successful mandate delegation requires careful management of the relationships between agencies, strict adherence to commitments, and optimal coordination of efforts to guarantee client satisfaction. In this article, we will provide you with key tips for successful collaboration, whether you are the delegating or delegated agency. These practical recommendations will enable you to optimize your results and maintain a relationship of trust with all parties involved.

1. Establish clear and regular communication

Communication of the most crucial elements in a mandate delegation. Good communication ensures that all parties involved, including agencies and the owner, are aligned on the objectives and actions to be taken.

Key tip: From the outset of the collaboration, define the communication channels that will be used (phone, email, shared management platforms, etc.). Establish regular follow-up meetings to inform the property owner and the delegating agency of progress made, feedback from potential clients, and new opportunities.

Transparent communication also helps avoid misunderstandings and allows for quick adjustments if necessary. For example, if a viewing does not result in an offer, the delegated agency must inform the delegating agency to determine if adjustments are needed to the property's marketing strategy.

2. Formalize expectations and commitments

One of the first steps to successfully delegating a mandate is to formalize each agency's expectations and commitments in a detailed contract. This avoids ambiguity and ensures that both agencies are on the same page.

Key tip: Take the time to draft a service agreement that clearly specifies the roles and responsibilities of each party, as well as the objectives to be achieved. This document should include essential information such as client selection criteria, fee allocation, visit management timelines, and update frequency. Leave no room for ambiguity in the contract: the clearer the expectations, the more successful the collaboration will be.

3. Choosing the right partner for delegation

Choosing the right partner for delegating the mandate is essential to ensure effective collaboration. It is important to select an agency with a solid reputation and relevant experience in the specific real estate sector.

Key tip: Before delegating a mandate to another agency, ensure they have the necessary skills and resources to manage the property professionally. Check their portfolio of similar properties, their client network, and the quality of their customer service. Don't hesitate to ask for references and meet with the managers of the delegated agency to ensure compatibility of approaches and the ability to work together.

4. Ensure a clear allocation of fees

One of the main sources of conflict between agencies is the distribution of fees . If the distribution of commissions is not clearly defined, tensions can arise, which will harm collaboration and professional relationships.

Key tip: Before you start working together, agree on a fair fee split based on each agency's responsibilities and effort. There are different methods for splitting fees, depending on the work done by each agency: a fixed commission for the delegating agency and another for the delegated agency, or a sales-based split based on the tasks performed (client research, viewings, negotiations, etc.). Include this split in the contract to avoid any ambiguity.

5. Ensure effective management of visits and prospects

Managing visits and leads is a key task in a delegated mandate. Effective management optimizes time, maximizes the conversion rate of visits into transactions, and strengthens the reputation of the agencies involved.

Key tip: Ensure all viewings are well-organized, followed up, and documented. This includes managing client feedback and adapting your approach to their expectations. If a property fails to generate interest from a prospective buyer, the managing agency must inform the managing agency and suggest adjustments, such as a price reduction or improvements to the property's presentation. Furthermore, ensure each prospective buyer or tenant receives proper follow-up to avoid losing potential buyers or tenants.

6. Maintain transparency with the owner

In a delegated mandate , the relationship with the property owner must be maintained with the utmost care. The owner must be informed of the actions taken by the agencies and the results obtained, without feeling held hostage by the process.

Key tip: From the outset of the collaboration, ensure the owner is informed of the delegation of the mandate and understands the roles of each agency. Keep them regularly updated on the progress of the process, viewings conducted, feedback received, and adjustments made to the sales strategy. In the event of significant changes (new offer, price revisions, etc.), be sure to discuss them with the owner before making any adjustments.

By communicating regularly and transparently, you establish a relationship of trust with the owner, which can greatly facilitate the completion of a sale or rental.

7. Implement shared management tools

Managing delegated authority becomes much more efficient when all transaction-related information is centralized and accessible to all parties. Using shared management tools, such as CRM (Customer Relationship Management) platforms, facilitates communication and coordination.

Key tip: Use digital tools that allow all agencies involved to access information in real time. These tools can include dashboards, visit calendars, follow-up reports, and prospect databases. By having access to the same information, you avoid duplication, communication errors, and conflicts of interest.

8. Maintain a professional and respectful attitude

Mutual respect is essential in any collaboration. A professional and respectful attitude allows for building a long-term, trusting relationship between agencies.

Key tip: In your interactions, always maintain a respectful and professional attitude, even in the event of disagreements. If a problem arises, try to resolve it quickly and constructively. A solution-oriented approach ensures harmonious cooperation and guarantees that the ultimate goal—the sale or rental of the property—is achieved under the best possible conditions.

9. Regularly evaluate results and adjust strategies

It is crucial to regularly assess the effectiveness of delegated authority to ensure that objectives are met. Regular evaluation allows for the identification of potential problems and their prompt resolution.

Key tip: Hold regular follow-up meetings between agencies to discuss results, client feedback, and next steps. If certain strategies aren't working, don't hesitate to adjust your plans. This could include changes to marketing materials, pricing, or even your target customer base.

Delegating mandates is a strategic practice that, when executed correctly, can significantly improve the efficiency of real estate agencies and enhance client satisfaction. For it to be successful, it is essential to establish clear communication, formalize expectations, carefully select partners, and manage fees transparently. The use of shared management tools, regular monitoring of actions, and maintaining a relationship of trust with the property owner are also key elements for ensuring optimal results. By following these guidelines, agencies can maximize their efficiency and offer a high-quality experience to their clients.