Rent Roll Values are Rising!!
In last month’s newsletter I wrote an article discussing the increase of the rent roll multiplier and improved value of the property management business. Thank you to those who responded providing feedback and thanking me for the information, I had the largest response ever to an article. This would suggest it is a subject of significant importance to most Principals.
The great news is, over the past month we have still seen further signs of recovery. Two Gold Coast rent rolls have gone under offer within just a few weeks with multiple offers on both in a market which was previously fairly tough. We continue to receive excellent buyer enquiry and feel more confident of achieving excellent value for quality rent rolls.
However, let’s also remember, in some markets the recovery is starting from a long way back and I’m certainly not saying prices are back to their peak just yet.
But just like a perfectly presented, quality home in a good location is always saleable and will achieve a premium price in any market the same can be said for a rent roll.
A good quality rent roll is always sought after and will attract a higher multiple in any market in almost any location. Maintaining a high management fee, low arrears and a local portfolio will always be attractive to buyers. Another primary KPI buyers look at when ascertaining rent roll values are the proportion of multiple landlords. Landlords with high levels of multiple properties under management will be considered of greater risk for the buyer.
You can read more information here on what defines a Quality portfolio.
If you would like to discuss this further please contact us anytime.
Graeme Bagshaw – 0439 789 789 or firstname.lastname@example.org
Kevin Hockey – 0439 789 789 or email@example.com