What makes a good rent roll and how can you get there?

Greenhouse Property engaged rent roll expert, Tarsi Hynes from Opulence Consultancy to share insights into the world of building a successful and saleable property management business.

Every rent roll is uniquely created to match every owner’s specific business plan. Tarsi believes that all businesses should be built by creating your end game goal and working backwards. So, if your end game is financial wealth and freedom, keep reading.

These are Tarsi’s top 5 things that make a GREAT rent roll and in no particular order as they are all equally important:

1. Location.

In the beginning, having a rent roll with properties that are in close proximity is for the best. This is because a widely dispersed rent roll requires property management staff to be out of office longer travelling to inspections and showings. Our time is money in this industry and if you’re just starting to build your portfolio, keeping the properties close to home lowers costs and gives you a competitive edge as the area expert.

2. Income Streams.

Whilst staying competitive is good, understanding your value is better. By making sure that your fee structure is strong, you are ensuring a good return for both the landlord and your business. Your fee structure should be created in such a way that you can uphold your management fee without discounting it. After all, when you go to sell your rent roll, your annual management fee income is what the multiplier will be adopted over and the sale price calculated on.

3. Your People.

Property management can make or break your rent roll and business. A good quality property manager can help drive more business with higher fees whilst a poor performing property manager, could do the opposite. It is important to monitor your staff’s performance, mental health and provide quality training.

4. Policy and Procedures.

Every business should have policies and procedures in place to assist in retaining more income and long-term employees. Success comes when these are implemented and are the basis of all training. When you set the right procedural foundations, the benefits will show in your rent roll statistics.

5. Regular Rent Roll Check Ups.

A rent roll isn’t a set and forget asset, it needs to be constantly monitored. You should conduct rent roll due diligence at minimum intervals of 2 years, this will help you find any discrepancies and ensure that you are operating well. This process will also assist you with employment reviews and checking that you are correctly charging your fees in accordance with your management agreement. Additionally, this process may show you where you may need to review your office policy and procedures. In some cases, it is best to outsource this process to allow for fresh eyes over the rent roll with no preconceived ideas.

Tarsi’s advice to Real Estate Agents striving to grow a rent roll in their business:

1. Have a business plan.

Decide on what you want for you and your family and then build your business from there. Your business plan doesn’t have to be set in stone, in fact, it should be reviewed and evolved regularly. Your business plan is a guide to where you want to be and what you would like to achieve. Ask yourself, “How many properties would I like to be managing and by when?”.

2. Seek professional advice.

If you are striving to grow a successful rent roll and build a saleable long-term asset, consult professionals who can get you there. I assist businesses in growing through purchasing and managing rent rolls. I also assist in minimising risk associated with operating a rent roll. Much like Greenhouse Property, who also assist agents in building a rent roll by eliminating the back-end stress of property management. If you are looking at doing both as part of your business strategy, then you should be consulting both types of professionals.

Want to learn more? Contact Greenhouse Property today.