What you need to know about growing a rent roll

If you’re currently building  a rental portfolio in your business, you need to know these six tips to ensure you are growing a valuable business asset.

Recently, the Greenhouse Property team spoke with Certified Business Valuer, Teri Roberts about the elements that make a high value rent roll. The main drivers of a rent roll’s value can be attributed to the income, market demand and risk assessment of the portfolio. Therefore, when you’re striving to grow this asset for your business, these are the things you should consider:

• Accumulate properties within the business catchment. By keeping the properties within your portfolio in and around the same areas, you are positioning the business as an expert in the area to make recommendations on maximising rent returns.
• Ensure fees are set at a level that is appropriate and will provide a profitable portfolio. Discounted management fees have an ongoing impact on revenue and are very hard to increase once in place. Discounts on fees will also significantly reduce the buyer demand for the portfolio and accordingly will affect the portfolio value.
• Have efficient property management systems in place. These systems should relate to arrears, maintenance and vacancies. This will maximise the return to the landlord of their asset and provide higher client satisfaction. Additionally, this will maximise the return on your asset, being the rent roll. With good management practices in place and high landlord satisfaction, you will also minimise the loss of managements.
• Keep compliances in order. Make sure that your trust account is reconciled and properly managed, your audits are up to date, your licences are maintained, your insurances are maintained, and your management agreements are correctly completed and compliant with current legislation.
• Use your technological program to their fullest abilities. This saves the company time and money and reduces errors.
• Look after your property managers. Property managers work hard to manage very valuable assets for both the business ownership and the landlords.

If you’re looking to build a strong, high value rent roll but you don’t want to sacrifice time or money managing properties, speak to our team at Greenhouse Property today.