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Rent Roll Valuation

Unlocking the value of property management assets

Valuing rent rolls

Rent roll valuations involve a comprehensive process that considers various factors. Valuers employ an analysis to work out the net management fee income of the rent roll, we then undertake market comparison of other transacted rent rolls to determine a multiplier, the industry standard for buying and selling rent rolls is on a derived multiplier of management fee income. They consider 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 compliancy to legislation. This holistic assessment provides a comprehensive picture of the rent roll’s value and also a due diligence of how the rent roll is run in comparison to other rent rolls with industry bench marking. Our valuers have a good understanding of the management systems used, the industry and the overall rent roll market in any location across Australia. They are also recognised as Industry leaders in this specialist valuation work and are on numerous bank panels to undertake this work.

 

 

Why choose Acumentis property valuers?

Rent roll valuations are complex and require an experienced Valuer. At Acumentis our team have the expertise, industry knowledge, and commitment to delivering accurate and reliable valuations that consider the unique requirements of each rent roll.

Factors affecting rent roll values

Many factors influence rent roll values including – number of rental properties managed, average weekly rent, type and condition or 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 compliancy to legislation. These factors impact the rent roll’s financial performance, growth potential, and overall market value and need to be considered and interpreted by an experienced, qualified valuer.

The Acumentis Experience

Rod Davidson leads the Acumentis rent roll valuation team, a specialist in this field with over 20 years of experience.

 

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 managing properties effectively.

In undertaking our valuation analysis the Acumentis team apply a valuation methodology that is in line with industry practice. This method identifies the annual commission received by the real estate agency over one year (excl. extra fees such as admin and letting fees) and then apply a multiple (approx. 2.0 – 3.3 times) over the management fees of the rent roll. This multiplier is derived from the analysis of sales of similar rent rolls and adjusted to take into account points of difference. These adjustments may be made to one or more of the following;

•           Market rent of the properties being managed

•           The level of ancillary income being charged on the managements

•            The average commission being charged on the managements

•            Vacancy of the rent roll

•            Level of arrears of the rent roll

•            Key staff experience and tenure to the business

•            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 to legislation. These factors impact the rent roll's financial performance, growth potential, and overall market value and need to be considered and interpreted by an experienced, qualified valuer.

Property Owners: Determine value for sale or investment decisions.

Real Estate Agencies: Evaluate performance and optimise processes.

Property Investors: Assess the value and potential returns.

Financial Institutions: Evaluate collateral and loan repayment ability.

Business Buyers: Evaluate potential acquisitions.

Accountants and Financial Advisors: Aid in financial planning and analysis.

Regulatory Bodies and Government Agencies: Ensure compliance and monitor market stability.

Our rent roll valuation specialists

Usha Abbey 
Business Valuer
Brisbane
Teri Roberts 
Director Business Valuations
Brisbane
Joe Stansfield
Regional Director - Tasmania (North)
Launceston
Rod Davidson
Director Valuations
Perth
Usha Abbey 
Business Valuer
Brisbane
Teri Roberts 
Director Business Valuations
Brisbane
Joe Stansfield
Regional Director - Tasmania (North)
Launceston
Rod Davidson
Director Valuations
Perth

How can we help you with your property needs?

Get in touch
Nick Funnell
National Director - Asset Advisory
— Melbourne Property Valuers
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