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Optimising Your Agency’s Financial Position for Growth

Creating space for growth in a real estate agency is important for staying ahead of your competition and capitalising on opportunities that can drive your agency forward. Growth is achievable when the right strategies are implemented to optimise your financial.....

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Business, Real Estate - 5 min read

Maximising Real Estate Agency Profitability with Rent Rolls

As an agency principal, maintaining and growing your share in the real estate market requires calculated approaches to building your income and market presence. Identifying and taking advantage of the opportunities that having rent rolls present in this market can provide scalable assets for your agency to create a steady income.

While there are several potential challenges and considerations to analyse before purchasing an existing rent roll, the potential of both short-term and long-term profits for your agency makes the investment worth your use of capital and building a team that can nurture.

Why Buy a Rent Roll Instead of Growing a Rent Roll Organically?

If you’re deciding whether the time spent weighing up rent roll listings should be on your list, here’s what it can do for you: 

  • Buying a rent roll is immediate. Skipping the process of growing your own rent roll reduces the past time spent of resources and time.
  • You gain immediate access to an income-generating asset. A rent roll is valued and measured by the immediate monthly income generated as a result of the purchase.
  • Build the sales pipeline for your agents. A rent roll reveals high-value properties and motivated sellers, generating leads, a referral base, and increased market presence.
  • Solidify your market share. Scale and the volume of properties under management shows a sense of market share consolidates your agency’s presence.

What Should You Consider Before Buying a Rent Roll?

Before making the decision to purchase a rent roll, ensure you have these criteria met:

  • Review the market. Finding a rent roll that aligns with your financial goals means taking the time to identify the opportunities. Often, it takes more than a review of current businesses and competitors' optics regarding their rent roll to find the right one for your agency. Engagement with advisers and networking with people in your industry can be the key to finding the hidden gems.
  • Conduct thorough due diligence to understand the quality of the rent roll. This includes reviewing the tenancy agreements, the condition of the properties, inspections, average management fee, number of owners, location, history, Staff attached and the relationships with current landlords and tenants.
  • Ensure the rent roll is fairly valued. Consider factors such as the location, the number of properties, the rental income, and most importantly, the growth potential.
  • Analyse the financial impact on your agency. What is the initial cost, potential income, and ongoing expenses?
  • Plan for the integration of the new rent roll into your existing operations. This includes staff training, system updates, and communication with new landlords and tenants.
  • Be prepared for “Churn”. Owners selling, moving in, and attrition, and plan for strategy of how to grow.

How Can Altus Financial Help Your Agency?

Our real estate experts specialise in all aspects of rent roll management, from identifying lucrative opportunities to ongoing guidance.

Leveraging our market knowledge, we identify rent roll acquisition opportunities that are right for you, whether you’re looking to expand your market share in a specific location or want to diversify your income. Our existing relationships with key financial institutions give you access to the best financing options, securing favourable loan terms and arrangements to support your agency’s position.

To maximise the value of your rent roll, we develop tailored growth strategies and ensure that client relationships, administration, and management are all handled with precision so that you can focus on your agency’s big-picture objectives.

Get in touch with our real estate team at Altus Financial to see how we can maximise your profits and grow your agency.

Blog CTA Stuart Waugh

 

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Altus Wealth Pty Limited ABN 55 649 956 212 is an Authorised Representative of Altus Financial Services Pty Ltd ABN 24 637 026 825 an Australian Financial Services Licensee (AFSL no. 520266). Altus Financial Services Pty Ltd is not responsible for the advice, products and services provided by Altus Accounting. Julie Azzi is a credit representative (CR No. 366834) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence 391237).