Rent rolls are easily valued or determined by a willing purchaser looking for extra income to help profitability, scale and growth seldom achieved by organic means in such a short period of time.
Goodwill comes at a price over and above the value of the rent roll.
mc rent roll broking has seen business goodwill values as little as $20,000 for an office and as high as $300,000 for a top performing property management and sales business. The question remains what are you buying or selling when asking for a value over and above the rent roll.
mc rent roll broking has been engaged in selling rent rolls anywhere from 30 properties under management to 720. Price has a bearing on size somewhat, however we have seen large rent rolls sell for over and above market prices.
What is constant, is that the pool of buyers shrink with larger rent rolls over and above 500, and the smaller the rent roll under 50 has less demand due to the same legal costs involved as if the sale were 500.
As the rent roll increases in size, profitability becomes increasingly important, so average income per property per annum should be the key driver of appetite for acquisition.
When buying or selling a rent roll, retention is so important for financial and reputational success. mc rent roll broking employs a detailed transition program in order to achieve the highest possible retention.
Communication to owners, scripts & dialogues through to compliance of newly signed agreements.
A high multiplier stands for nothing if considerable managements are not successfully transitioned across to the purchaser.