Finding the next listing doesn't always mean waiting for the phone to ring. It can take a proactive effort: working through a database, reaching out to homeowners, starting real conversations, and spotting someone who is thinking about making a move.
Those calls can be an important part of building a pipeline because inventory is the lifeblood of real estate. With new cold-calling rules changing how property practitioners can approach potential clients, Prop Data polled industry professionals to find out their thoughts.
Cold calling changes get a chilly reception
In Prop Data’s poll, 55% of property practitioners said they were either “very concerned” or “extremely concerned” about the recent cold-calling restrictions.
Commenting on the high level of concern, Donovan Melville, Principal of Badger Properties, believes the industry is already subject to too much regulation and questions whether the new requirements place an unnecessary burden on real estate businesses. “This industry is already over-regulated, and they are once again ‘piggybacking’ on us to bring in another ‘cash cow’,” he says.
“They are again being heavy-handed in their approach to force real estate agencies to comply and conform by means of fear tactics and hefty fines on the business owners in the event of one of their practitioners falling out of line,” he adds.
Melville also raises concerns about the practical implications of the new opt-out system, particularly for businesses that have spent years building and managing their databases through CRM systems. “It is cumbersome, and quite frankly, it is almost as if they want to scrutinise all your contacts and data. Most businesses have been using CRM tools for years, but this opt-out system that is coming into effect is a farce.”
For others, the concern lies in the challenges it could create for people trying to enter the industry. “New entrants, candidate property practitioners, and practitioners without an active database of past customers are facing a daunting task,” says Benhard Wiese, Principal of CCH Properties. “The swing to so-called ‘inward marketing’ will effectively ‘remove’ quite a big percentage of real estate professionals from the industry.”
Practitioner prospecting takes a punch
Real estate businesses and property businesses are having to rethink how they market to prospective sellers. Unsolicited messaging campaigns, mass cold calls, and blanket prospecting may become less practical as stricter compliance requirements and opt-out rules require practitioners to double-check their contact lists before launching a campaign or picking up the phone.
For practitioners on the ground, navigating these new boundary lines is already impacting real estate operations. “The number of calls ended prematurely by clients has increased because you now have to satisfactorily explain where you obtained the client’s contact details,” says Bokaba Maluleka, Principal of Bokaba Property Solutions.
Adding to the tension is a widespread uncertainty around how the framework is meant to be interpreted in daily practice. “To apply the 'letter of the new law' at the moment is a confusing exercise, as there are still quite a few grey areas around how to be a compliant property practitioner,” explains Wiese.
However, some practitioners see it as business as usual. Melville says cold calling remains a necessary part of the job: “It hasn’t changed the way I personally prospect. Should a new contact or client indicate that they do not wish to receive further communication/information, I will rectify and remove them as required. The nature of this business doesn’t afford the luxury of avoiding cold calling.”
Cold calling with compliance in mind
For practitioners looking for practical ways to adjust, Property Professional has outlined several steps that real estate businesses can take to get their prospecting processes in order:
- Know if you're in scope: If your business cold calls, canvasses for mandates, sends unsolicited bulk messages, or uses contact lists for prospecting, treat these activities as direct marketing.
- Put someone in charge: Assign the principal or a nominated person to oversee compliance rather than leaving it to individual practitioners.
- Get your paperwork ready: Gather the company registration, VAT, tax clearance, and B-BBEE information required for registration so you are ready when the National Consumer Commission (NCC) registration process is operational.
- Know where your contacts come from: Map every database used for prospecting, including your CRM, older lists, spreadsheets, purchased contacts, portal leads, WhatsApp lists, and outsourced lead-generation databases.
- Cleanse databases monthly: Build the required monthly check against the NCC’s pre-emptive block registry into your compliance calendar rather than treating it as a once-off exercise.
- Keep your own do-not-contact list: Record consumers who ask not to be contacted and honour those requests immediately, regardless of whether their details appear elsewhere in your database.
- Review your messages: Make sure your cold calls, SMS messages, WhatsApp messages, and other direct marketing clearly identify your business and provide the required contact details.
- Assess high-volume prospecting activity: Before continuing large-scale direct marketing, ensure your business has completed the applicable registration and compliance steps.
- Budget for the process: Factor registration, renewal, and database-cleansing costs into your business’s compliance planning.
- Register when the NCC process opens: Once the registration portal is operational, businesses should complete the required registration and ensure their databases have been checked against the relevant block list before continuing direct marketing.