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.