Having handled the sale of dozens of rent rolls over the last few years, I’ve come to recognise the precursors of a smooth and successful sale process.
For example, agency owners who stay on top of bookkeeping find it much easier to prepare their rent roll for sale. They have all the information of the past three to five years to hand and they’re able to present it clearly. This helps quantify the value more easily to the buyer.
A successful rent roll sale can also come about thanks to a great team. A mile-long list of tenants and landlords who are well looked after and have few complaints is much easier to pass on than a troubled collection of disgruntled customers looking for any excuse to move their business.
What’s more, it can be easier to secure a rent roll sale if you ‘pick and stick’, and niche your market. By being the ‘XYZ’ specialists, you can build a rent roll which is easier to manage and therefore more valuable.
Here are some ways to niche your rent roll:
Geographically
If possible, try to keep the majority of properties overseen by your rent roll within the same few postcodes. This reduces travel time for your team and enhances their local knowledge so they can serve your customers better.
When you stick with one or two locations, you can also build up a database of trustworthy local service providers. Plumbers, electricians and carpenters will be on call to make emergency repairs without having to travel to far-flung locations.
You can even specialise in a single building complex, taking over the property management of a large apartment block (or two or three) and narrowing your services to suit owners and tenants of these properties.
Demographically
Focusing on a type of tenant can also work in your favour.
You may decide to be the agency which specialises in student housing. There is always demand for this type of accommodation near schools and universities so if you put the right strategies and procedures in place you can expect a busy trade.
Your agency could cater to city-based high rises which are sought after as short-term rentals by visiting professionals. In return for the shorter leases, you could rent these properties fully furnished and recommend the landlord charge a premium.
Families are another niche which it can pay to specialise in, particularly as they tend to seek long-term accommodation arrangements. Generally speaking, people with children make an effort to take care of a property as they do not want to find themselves looking for somewhere new to live every couple of years.
When you specialise in a demographic niche, you will get to know the pitfalls of working with these types of people and be able to adjust your management of them accordingly.
Economically
High-end, luxury properties can be difficult to find tenants for but can also be lucrative in terms of payday. Alternatively, you can profit from managing a large number of reasonably priced properties, which are in demand from more people.
Again, by specialising, you can build your reputation as the ‘go-to’ property manager for this section of the population and refine your marketing to target your audience and grow further. If you don’t want to put all your eggs in one basket, choose a couple of areas to focus on and concentrate on outperforming the competition in terms of professionalism, service and business results.
When helping my clients sell their rent rolls, the paperwork, the reputation of the agency and the quality of the landlords, tenants and properties on the books all come into play. The more organised and strategic the owner of the rent roll has been, the more likely they are to secure a quick and hassle-free sale.
BDH Solutions are rent-roll agents with over 30 years experience in connecting the right vendor with the right purchaser. To stay up to date with our latest listings, register here.