How does managing a strata roll differ from managing a rent roll and should your real estate agency go down this road?
Strata is becoming more popular as medium and high-density housing takes over the suburban landscape. For real estate agents, this presents an opportunity to expand into strata roll management as well as traditional property management.
Does the way people feel about your rent roll contribute to its value? Find out the answer, and how you can improve goodwill towards your agency.
When preparing to buy or sell a rent roll, the number of clients in the database, the value they bring and the length of time they have been with the business all come into play. These are all tangible and can be measured.
As a real estate agent, you may receive a call from a landlord client who has put money into a retail outlet or office and wants you to manage it. This is an excellent chance to grow your rent roll, however there are different rules and regulations around the letting of this type of property which you must comply with.
While some of Australia’s regional towns are thriving thanks to local industry, others haven’t had a heydey since gold-rush times. With no tourism drawcards and a landscape ravaged by drought, population numbers in these areas continue to dwindle.
Real estate agency owners in regional Australia are suffering from a drought of their own. Not only is there are lack of property being exchanged, agents who are ready to sell their own businesses are set back by a lack of interest.
When you sell or buy a rent roll, often property managers and administrative staff are included as part of the deal. If they’re not happy about the change, your customers, your reputation and your relationships can be at risk of ending up in the wrong hands.
Avoid the loss of valuable information and clients by planning ahead and structuring a plan to manage staff during a rent roll transition.
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.
During an upswing in the property market, new real estate agents flock to the business, excited to take home their piece of the pie. However, reality inevitably bites! Being able to survive the hard times requires persistence, planning and strategy.
When the property market takes a breather and homeowners become reluctant to sell, here are some ways to ensure your business doesn’t go down the plughole.
Both property and small business are two areas of the economy feeling the heat as a result of the 2018 Banking Royal Commission. If you own a real estate agency, this can be troubling news!
During commission hearings, it was found lenders including ANZ and Westpac financed small business loans which the Financial Ombudsman later ruled should not have been approved. In one case raised as part of the enquiry, it was reported borrowers were given in excess of $200,000 despite providing unrealistic financial forecasts.