BUYING A RENT ROLL

WHAT TO LOOK FOR IN A RENT ROLL

Primary factors typically are:

  • Average rent over the rental roll
  • Average management fee
  • Number of properties
  • Location and comparative sales.

Secondary factors include some of the below:

  • Arrears to property ratio
  • Size of the rent roll
  • Age of the rent roll
  • Average rent (+/-) to where it should be
  • Management fee (+/-) to where it should be
  • Secondary Income
  • Letting fees and Inspection fees
  • Owner to property ratio
  • Financial performance

HOW ARE RENT ROLLS VALUED?

Rent Rolls are typically valued by assessing 14 varied factors in conjunction the comparable sales, that give the predicted market value and multiplier. Multipliers change from city to city. Please see the multiplier table below for your interest. 

WHAT ARE THE NEXT STEPS?

Embarking on the journey of acquiring a new business is an exciting step, and we’re here to ensure it’s as seamless as possible. Here’s a brief guide to the upcoming steps:

  1. Complete the NDA: Start by filling out the Non-Disclosure Agreement (NDA). This ensures confidentiality and sets the stage for a trustful exchange of information.
  2. Receive the Information Memorandum: Once the NDA is in place, you’ll promptly receive the Information Memorandum. This comprehensive document provides a deep dive into the business you’re considering.
  3. Request a Sales and Purchase Agreement (SPA) subject to Due Diligence: If the Information Memorandum aligns with your expectations, the next step is to request a Sales and Purchase Agreement, tailored to include a Due Diligence clause. This safeguards your interests as you delve deeper into the details.
  4. Complete Due Diligence (typically 10 working days): Take the time you need for Due Diligence, usually around 10 working days. This period allows for a thorough examination of the business’s ins and outs, ensuring informed decision-making.
  5. Settlement: Once Due Diligence is successfully completed, settlement typically occurs on the first business day of a given month. This marks the official transition of ownership.
  6. Transition Support: To facilitate a smooth transition, we provide comprehensive checklists and templates. These tools are designed to guide you through the process, ensuring no detail is overlooked.
  7. Retention Period (3-6 months): Post-settlement, there’s a retention period of 3-6 months. During this time, we remain actively involved, offering support as needed to both the Vendor and Purchaser.

Our dedicated brokers will be with you every step of the way, providing assistance and guidance to make this journey a successful one

JOIN OUR BUYERS REGISTER

Interested in buying a rent roll? Fill out our form with your information and the specifics of the rent roll you are looking for below. This should only take you 1-2 minutes to complete at most. You will receive a complimentary rent roll growth booklet valued at $99 plus GST upon filling up the form.