Rent Roll Valuation
Rent Roll Valuations with Pendium Advisory
Are you looking for a comprehensive valuation of your rent roll? Then you’ve come to the right place. Our team of valuation experts specialise in providing industry leading valuations to real estate business owners around Australia servicing residential, commercial and strata company management portfolios.
Don’t hesitate to reach out to us for a consultation. We’re here to help you succeed.
Why Choose Us?
With more than a decade of experience, we understand the ins and outs of real estate business valuations and are here to help you make informed decisions.
Our Services
For business owners looking to sell their rent roll, being aware of the value of their rent roll is an essential component of determining, and influencing, current and future market appeal.
An in-depth strategic analysis can help you solidify plans to sell your rent roll, or outline opportunities to advance your asset to better meet your goals and objectives in the long term.
Our specialists will complete a comprehensive rent roll valuation to determine areas of improvement, gaps in the market, and potential for greater profitability in your asset.
Crafting a succinct strategy for success, our team will help you better understand your current positioning, as well as a pathway to achieve your future aspirations quickly and efficiently.
This is especially important before entering negotiations for your asset, with a comprehensive valuation ensuring you don’t sell your rent roll, or yourself, short in a transaction.
On the flip side, for business owners looking to buy a rent roll, a Valuation of a rent roll looking to be acquired can save you many headaches down the track by identifying the positive and negative attributes of an opportunity so you can make a clear, commercial decision before making a significant financial decision.
In addition to buyers and sellers, rent roll valuations can be used by outside stakeholders including but not limited to accountants, financiers and external parties for a variety of purposes including succession planning, ascertaining debt funding and serviceability and investment feasibility, amongst other purposes.
For More Information on buying a rent roll, get in touch. We’re here to help you succeed.
Why Rent Roll Valuations are Important
Rent roll valuations involve a comprehensive process that takes into account more than 26 different metrics.
Valuers analyse the annualised net management fees of the rent roll and key factors that impact value then compare it to other transacted rent rolls to determine a multiplier.
The industry standard for buying and selling rent rolls is based on this adjusted multiplier times the annualised net management fees.
Many factors influence rent roll values, including the number of properties managed, average rental values, type of properties and management, term of contracts, management fees charged, average annual management income per property, geographic spread, property to landlord ratio, ancillary fees and charges, arrears rates, vacancy rates, staff and wages, economic factors, supply and demand, and compliance with legislation. These factors impact the financial performance, demand, and overall market value of a rent roll.
This thorough assessment provides a comprehensive understanding of the rent roll’s value and allows for a comparison to other rent rolls in the industry, identifying areas of improvement to optimise value.
Our valuers have extensive knowledge of the rent roll market throughout Australia, continuously recognised as industry leaders in this specialised field of rent roll and real estate business valuation and are regularly called upon by numerous banks to perform these assessments.
If you’re seeking a comprehensive valuation of your rent roll or a rent roll you are looking to purchase, the team at Pendium Advisory is here to assist you.
Contact us today to schedule a consultation and take the first step towards a successful transaction.
FAQ Enquiry
Frequently Asked Questions
A rent roll is a real estate agency’s portfolio of rental properties. The portfolio includes intellectual property such as property addresses, tenant and landlord details, rental values, and chargeable fees.
Contrary to much belief, rent rolls are tangible and bankable assets that can be transacted.
To value a rent roll, the Pendium Advisory team uses valuation methodologies in line with industry practice.
This method calculates the annual commission received by the real estate business over one year (excluding ancillary fees) and applies a multiplier to the rent roll’s management fees.
This multiplier is determined through an analysis of sales of similar rent rolls and adjusted to account for any differences in the key metrics.
Many factors influence rent roll values, including the number of properties managed, average rental values, type of properties and management, term of contracts, management fees charged, average annual management income per property, geographic spread, property to landlord ratio, ancillary fees and charges, arrears rates, vacancy rates, staff and wages, economic factors, supply and demand, and compliance with legislation.
These factors impact the financial performance, demand, and overall market value of a rent roll.
For business owners looking to sell their rent roll, being aware of the value of their rent roll is an essential component of determining, and influencing, current and future market appeal.
An in-depth strategic analysis can help you solidify plans to sell your rent roll, or outline opportunities to advance your asset to better meet your goals and objectives in the long term.
Our specialists will complete a comprehensive rent roll valuation to determine areas of improvement, gaps in the market, and potential for greater profitability in your asset.
Crafting a succinct strategy for success, our team will help you better understand your current positioning, as well as a pathway to achieve your future aspirations quickly and efficiently.
This is especially important before entering negotiations for your asset, with a comprehensive valuation ensuring you don’t sell your rent roll, or yourself, short in a transaction.
On the flip side, for business owners looking to buy a rent roll, a Valuation of a rent roll looking to be acquired can save you many headaches down the track by identifying the positive and negative attributes of an opportunity so you can make a clear, commercial decision before making a significant financial decision.
In addition to buyers and sellers, rent roll valuations can be used by outside stakeholders including but not limited to accountants, financiers and external parties for a variety of purposes including succession planning, ascertaining debt funding and serviceability and investment feasibility amongst other purposes.
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