How do you value a rent role?

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