Organic growth of a rent roll Pros and cons of growing an organic rent roll

Pros include

  • Cashflow injection
  • Increased sales commission opportunity for sales side of the business if applicable
  • Often it is easy to add value to a rent roll being purchased
  • Profitability increase when merging outgoings of a business ie; administration, commercial lease, cost of software
  • Increase in new business referrals from marketing in place if this part of the business is acquired ie; website, social media, etc.
  • IP gained on acquisition is a pro that is often overlooked but a very real “Pro”

Cons include

  • Taking on a “dirty book” can be rather painful and costly in terms of time and energy to clean it up
  • Attrition or loss risk of clients during acquisition as there are many factors that must be handled carefully during a rent roll acquisition
  • Taking on staff that are not at the same level as your own in terms of knowledge and skill set. Also, bringing different teams together can be culturally challenging.
  • Employing a BDM is often challenging. A lot of time and expense is involved in employing BDM’s, sometimes without the necessary return on investment.

Published on 03/23/2018

Share this article

Grow your rent roll organically today

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.

Subscribe to our newsletter Get Monthly Rent Roll Listings Updates

Sign up for our monthly newsletter and you will be the first to be notified when there are new listings or updates to our listings. You will also have access to our promotions and free resources.

  • 027 5699991

REAA Licence 10002029, Excalibre Real Estate Richmond Limited
Excalibre Real Estate Richmond Limited – Licensed Agent (REAA 2008)
257 Queen Street, Richmond, 7020