Rent rolls are without a doubt, where the value lies in any real estate business. If you aren’t already familiar with what a rent roll is, let’s begin by breaking things down.
A rent roll is what we call all the aspects of a real estate office that involves rent collection, managing maintenance and repair needs, and liaising with tenants. In turn for rendering such services, a real estate firm is remunerated with management fees and commission, in addition to rent and other charges. Some of these fees could seem insignificant. But when multiplied across a real estate agency’s entire portfolio of properties by the hundreds or thousands, it should be plain to see why rent rolls can command up to almost four times their annual worth.
As with the sale of most other businesses, we believe that the key to successfully selling your rent roll lies with transparency and good communication. Our brokering process with rent roll owners begins much like any other client consultation – with the question of ‘Why are you selling?’
If you legitimately want to sell your rent roll for mutual profitability between yourself and a buyer, this should help objectively structure the rest of your process of sale. However, plenty of business owners are pressured into selling their business due to a mounting frustration that stems from operational stress. Are you throwing in the towel on your rent roll because you’ve had a few bad months managing it, and want out?
Like any other business asset, rent rolls sell much better when they’re in a good condition to be sold. And this takes a number of things into consideration – such as good bookkeeping and transparency in communicating any of your operational processes. Preparing a rent roll for sale is just like getting any other business ready for sale. You want to achieve maximum transparency possible, so a potential buyer stays comfortable exploring the possibility of a purchase.
Assuming that everything to do with your rent roll is in order, the next rational step would be to run a bit of marketing, either through your website, or existing communication channels. By this stage of your preparation, you should have a good idea of what goes with the sale of your rent roll. Are you looking to liquidate a specific property, component of your business, or will you also look at selling off your staff of Property Managers, and the office that goes with your real estate agency?
Some rent roll owners would prefer to sell just their rent roll for a specific property or set of properties, while maintaining their business brand, premises, and staff. However, it is prudent to be clear on what you would like to achieve through the sale of your rent roll. Some business owners may feel a need to look after their staff during the event of a sale of their business. However, think about how your staff may react negatively to change, and how this could potentially affect the experience of a buyer who has committed to your rent roll.
Working with a Business Brokerage to Sell Your Rent Roll
Whatever your reasons for selling a rent roll are, a professional business broker can definitely be of great help to your processes. Beyond just preparing your business for review, working with a business broker could also help you specifically define your business exit strategy.
Working with a professional business broker like Selling Your Business will also mean that you’ll get the professional assistance you need with documenting and presenting your business information effectively. As professional business brokers, we also have access to various industry contacts that may be out on the market to shop for a profitable rent roll business. A professional business broker would be able to help effectively market the sale of your rent roll business to a variety of contacts via different marketing and promotional channels (social, online, referrals etc).
Apart from managing communication between buyers and sellers, a professional business broker can also help by entering negotiations you’re your potential buyers. This includes dealing with any solicitors or financiers who may also be involved in the process of transacting your business.
Achieving Results for Clients Looking to Buy or Sell a Business
Working with a professional business broker is all about achieving the best possible outcome of sale for your rent roll. We want to market your rent roll in the most effective way possible, and secure high quality purchasers who would be motivated to achieve a mutual goal of transaction.
At Selling Your Business, our team of brokers works with an extensive network of contacts and resources that can bring immediate benefit to any client’s search for buyers and sellers. We bring over 20 years’ experience to our trade, and this places us in a discreet vantage to provide dependable support for business owners seeking out their next opportunity.
Depending on your preferences as a client, we can support the process of your sale with the utmost confidentiality, and provide up to date listings of any available purchases. Keeping a current inventory is just one way we can help our clients attract their potential buyers, and keep their business marketable.
When you work with us, what you’ll get is a smooth outcome for your business goals. We facilitate the transition of business assets between owners, and understand the human concerns involved with such a transition. What we strive to achieve are mutually beneficial agreements between all parties involved.
With so many different factors to consider in such a process, the benefits of working with a business broker are plain to see. No matter your type of business or objective, Selling Your Business provides expert counsel and execution when it comes to representing you. Call us at 03 9088 8006, or email us to find yourself a better option with our team.