Rent Roll Valuation
Your Accurate Rent Roll Valuations with Pendium Advisory in Australia
Are you looking for your rent roll valuation in Australia? Look no further than our experienced team at Pendium Advisory. We offer rent roll valuation to ensure fair and accurate pricing. Whether you are a buyer or seller, our team at Pendium Advisory is here to assist you every step of the way.
Why Choose Us?
With over 10 years of experience in the industry, we understand the ins and outs of buying and selling rent rolls in Australia. Our team is committed to providing personalized service and expert guidance to ensure a successful transaction.
For Sellers: If you’re looking to sell your rent roll, we offer a comprehensive package that includes a valuation of your portfolio, marketing your rent roll to potential buyers, and negotiating the best possible price for you.
For Buyers: If you’re interested in buying a rent roll, we can assist you in finding the right portfolio to suit your needs and budget. We’ll also provide support throughout the buying process, from due diligence to settlement.
Alternatively, if you’re looking to buy a real estate business or rent roll, our extensive industry network, processes, and experience puts us in the position to source you the kind of asset that will secure your objectives in the short and long term. We’ll analyse your existing portfolio for the opportunity and fulfill your brief with the best fit to maximise the value of your business.
Why Rent Roll Valuation is Important
Rent roll valuations involve a comprehensive process that takes into account various factors. Valuers analyze the net management fee income of the rent roll and compare it to other transacted rent rolls to determine a multiplier. The industry standard for buying and selling rent rolls is based on this multiplier. Factors such as the number of properties managed, average weekly rent, management fees, geographical spread, property to landlord ratio, ancillary fees and charges, arrears rates, vacancy rates, staff and wages, economic factors, and compliance with legislation are all considered.
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.
Our valuers have extensive knowledge of the management systems used, the industry, and the rent roll market throughout Australia. They are recognised as industry leaders in this specialized valuation work and are selected by numerous banks to perform these assessments.
Frequently Asked Questions
A rent roll is a comprehensive register of rental properties managed by a property management company or landlord. It includes key details such as property addresses, tenant information, lease terms, and rental payment history. A rent roll is a vital tool for tracking rental income and effectively managing properties.
To value a rent roll, the Pendium Advisory team uses a valuation methodology in line with industry practice. This method calculates the annual commission received by the real estate agency over one year (excluding extra fees like admin and letting fees) and applies a multiple (approximately 2.0 – 3.3 times) over the management fees of the rent roll. This multiplier is determined through an analysis of sales of similar rent rolls and adjusted to account for any differences. These adjustments can be made to one or more of the following:
The market rent of the properties that are being managed
the level of ancillary income being charged
the average commission being charged
the vacancy rate
the level of arrears
key staff experience and tenure
documentation and files
sales evidence and demand in the marketplace
Many factors influence rent roll values, including the number of rental properties managed, average weekly rent, type and condition of properties, occupancy rates, term of contracts, management fees, geographical spread, property to landlord ratio, additional 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, growth potential, and overall market value of the rent roll. They need to be considered and interpreted by an experienced and qualified valuer.
Rent roll valuations are beneficial for various parties:
Property Owners: They help determine the value of the rent roll for sale or investment decisions.
Real Estate Agencies: They can evaluate performance and optimize processes based on the valuation.
Property Investors: Rent roll valuations assist in assessing the value and potential returns.
Financial Institutions: They evaluate collateral and the rent roll’s ability to repay loans.
Business Buyers: Valuations aid in evaluating potential acquisitions.
Accountants and Financial Advisors: They use rent roll valuations for financial planning and analysis purposes.
Regulatory Bodies and Government Agencies: Rent roll valuations ensure compliance and monitor market stability.
Request Further Information
"*" indicates required fields