Have you ever had that moment when you’re wandering through your garage, looking for the extra-long extension cord you know you have, and instead you stumble upon an old painting you’re sure must be worth something by now?
Then you will know what it’s like to have treasure sitting right under your nose without realising it. Well, if you’re a Real Estate Agency, then you might just be sitting on the same type of treasure.
Your rent roll could be worth a lot more than you think. Maybe it’s become a little stagnant because you’ve had some of the properties for a long time. Perhaps it might be worth more to an agency that is newer or has a different focus to yours or perhaps it is an asset that can be used as security for finance to grow your business or personal wealth.
There are a few factors to consider if you are contemplating the value of your rent roll. We have outlined four which we believe are important ones below:
- First and foremost, the number of properties you have under your jurisdiction is going to be critical in increasing the validity and, more importantly, the value of your rent roll.
- How long you have had the properties on your rent roll. A buyer is going to want to be confident there is some stability in taking over a new list. Another agency will want value for money just as much as you do.
- The geography of your rent roll is also extremely important. Aspects such as if the area or areas are on the rise or in decline—not to mention how competitive they are in terms of other agencies.
- Is the growth via your reputation as a managing agent or is it via your sales team funnel of properties recently sold?
Therefore, when you are looking at ways that can assist you in growing your business or looking for a succession to exit then knowing what your key assets are worth is critical when making these decisions.
Mead Partners can assist you in making sure you are getting the right advise and point you in the right direction in this very specialised field. Contact us today on (03) 9523 2277, or get in touch here.