Expand your real estate agency portfolio by adding strata rolls and you could be setting your agency up for long term success. 

Strata roll vs rent roll… what’s the difference and which one will make you the most money?

While the answer to the second question depends on a few factors, strata rolls do have the potential to be more favourable in economic terms. 

Here’s what you need to know about the difference between the two.

Strata roll vs rent roll: The responsibilities

The traditional rent roll includes individual investment property owners (landlords). It’s the job of the property manager to liaise with the landlord, secure a tenant, arrange contracts, collect payments and ensure the property is looked after. 

The majority of these clients provide a relatively smooth experience, especially if you have long term landlords and tenants. There are always a small percentage who give you endless grief and have you looking forward to the end of the contract. 

With a strata roll, instead of dealing with individual properties and their owners, you are dealing with all the lots in a block, sometimes up to 300. However, you’re not responsible for what’s going on inside each apartment, shop or office. Instead, you are dealing with the ongoing management of the premises. 

With a strata roll, tasks tend to be more administrative and less people based. They involve dealing with budgets and liaising with the Executive Committee or Owner’s Corporation, not tenants and landlords. 

When you’re looking to hire a strata roll manager within your agency, you’ll be looking for a slightly different skill set. Often, these professionals have worked in finance or corporate program management. They take into account elements like budget, levy collection, expense allocation and insurance, which isn’t usually the responsibility of a standard property manager. 

Strata roll vs rent roll: The cost benefits

There are a few reasons why a strata roll can be more economically robust than a rent roll. 

1. Strength in numbers

With a rent roll, you have to liaise with each landlord and tenant. When things go wrong all at once, your property manager can find themselves badly snowed under and in need of paid help.

With a strata roll, your agency is overseeing dozens, if not hundreds of properties under the one contract. Provided you do a good job and give the Executive Committee reason to renew each year, this means you have a single point of contact for many times the commission/fee rate of a traditional rental property. 

1. Longer agreements

Strata rolls are more likely to be reviewed and renewed than property management contracts, which often end up being left out of date and give the landlord a fast exit option.

You may sign on to a strata roll agreement for two or three years. This makes your annual income easier to forecast. 

1. Fewer staff

Strata roll managers tend to be more skilled and they can generally handle a greater number of properties at once, e.g. 300 instead of the 150 handled by a rent roll property manager. 

1. Less travel

Driving out to open rental properties can eat into time and money. With a strata roll, your agency is tasked with administrative jobs. While there are still annual general meetings to attend, you’re not always expected to be on site. This also means you can widen your net and take on strata rolls which are further from your home base. 

Of course, rent rolls are still an important part of a real estate agency. They give you access to potential buyers and sellers, plus it can be a rewarding job when you build up a base of friendly and cooperative clients.

However, as COVID-19 showed us, things can change rapidly and often. Strata premises are on the rise around Australia so it’s worth investigating how this type of roll can work out financially for your business. 

BDH Solutions are rent roll and strata 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.