Building a rent roll is one thing… building a premium, sought after rent roll is another.
Elements of a premium rent roll
While profits are important, creating an outstanding rent roll is more than a numbers game.
A rent roll which is an asset to your business will have a profitable number of properties and landlords. It is all the better if some of your landlord's own multiple properties - although beware of tipping the balance of having too few landlords with many properties as it the value of your rent roll will reduce dramatically in one leaves.
The properties you manage shouldn’t all be in the one area but they also won’t be too spread out (this leads to too much travelling on your part). Ideally, your agency will be managing a range of dwellings, from apartments to houses.
Back in the office, your rent roll should be managed smoothly, with modern systems allowing for automated emails, texts and reminders. A landlord and tenant ‘intranet’ should provide answers to frequently asked questions and make applying for tenancy a straightforward process. Accounts should be as up to date as possible, with no large outstanding bills.
Transforming your rent roll
If your rent roll is good, but you feel it could be better, there are some tactics you can try.
Firstly, remember 80% of a property manager’s work is created by 20% of bad tenants and landlords. These are the clients who don’t pay on time, who always have a complaint and whose properties are in such bad shape it feels like there is an endless list of problems.
Go through your list of landlords and tenants and categorise them into
Create a strategy for attracting a higher standard of tenant so over time you can increase the value of each property by reducing the time and resources spent on ‘high maintenance’ tenants.
Your other option is to contact the less than favourable tenants for a chat. Find out what is bothering them most about their property and see if you can offer a solution.
As for the bad landlords, there are a few plans of attack. This includes ending the relationship - an extreme measure but it might be worth it if they are taking up too much of your time.
Otherwise, you can help the bad landlords become good landlords by showing them how a few improvements to their properties can help attract better tenants (and higher rent). Giving them tips about shaping the property into something the ideal tenant would want to rent can work out in both of your favour. For example, if there is a school nearby and the suburb is mostly families, look at how the property could be improved to attract a family with school aged children. For an apartment for a working couple, you might add a high speed internet connection and update the kitchen as a way of improving rental value.
Once you have resolved the ‘dead wood’ tenants and landlords, put systems in place to make managing your rent roll easier and more efficient. Take a detailed look at your current and forecast profits and identify any areas where income can be maximised.
By running a tight ship, you will create a rent roll which is less trouble for your team and more valuable when it comes time to sell. To stay up to date with our premium rent roll listings, register here.