How are rent rolls valued in New Zealand?

Rent rolls are most commonly valued based on annualised management fees across a multiplier range.

This range differs from region to region and again within a region when looking at city, say compared to rural location.

The primary factors in determining rent roll value include average rent, average management fees, number of properties and of course location of rent roll. Secondary factors include the age of rent roll, number of owners versus properties ratio, arrears, vacancy, market demand, other sales in a same or similar location, additional fees and potential “additional” revenue.

In other words, the way rent rolls are valued are specific to our industry.  There are other less used valuing methods, typically used when secondary revenue streams to management fees, sit higher than average.

Published on 03/22/2019

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About the author

Hamish has over 17 years of experience within the property management industry and has experience throughout New Zealand and Australia as a manager, principal and consultant. He utilised all of this experience to form a property management business that he expanded between 2009 and 2016 into 7 locations around New Zealand.

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