So what does this mean for you as a business owner or as a buyer of a rent roll? Certainly, you should have the status of properties up to date where required/per legislative requirements. And when selling your rent roll, what it means is that whatever terms you agree to should be thought through in terms of what resources are required to complete terms agreed to, together with potential capital value loss if it is not.
Historically retention, deposits and restraint of trade have been some of the primary terms seen in the sale of a rent roll. I believe based on the number of acquisitions I am seeing with these “newer terms” that legislative requirements are very much going to become a primary term consideration in addition to these more historical terms that we tend to expect on the sale or acquisition of a rent roll.