In Australia, the standard rental agreement is for 12 months. Once this expires, most agencies and tenants continue on a month to month basis for so long as everyone is happy.   This arrangement, however, works in a tenant’s favour as they can move out with only four week’s notice.   As an agent managing a large rent roll, having a large proportion of tenants whose leases have expired is actually a destabilising factor due to the unpredictability of tenants.   The benefits of a long term lease

ntegral to the success of any real estate agency is an ever-growing, good quality rent roll.   The more properties you manage, the more contacts you have for potential buyers, sellers and investors. A strong rent roll also counts as an asset when it comes time to sell in the future.   As a smaller agency looking to grow, you may find yourself faced with the decision of whether to build your rent roll from scratch or buy one ready to go.

Thanks to your rent roll, you are receiving commission for collecting rent and managing properties on behalf of your landlords. But if you are considering selling your rent roll, what would give it extra value?   A poorly organised rent roll can impact your profits. By introducing online systems and initiating a better level of consistency, you will be able to eliminate stumbling blocks and leverage your rent roll for maximum results.

One of the pivotal roles in any rent roll is the property manager. Typically, the property manager role is relatively temporary, and seen as a fairly junior role. It is not uncommon for the receptionist to move into a property management role as they become familiar with the processes and system in place in the agency. It is also quite common for these employees to be younger and more ambitious – which means they are easily tempted into roles with better pay and more responsibility. To put it plainly – they are easily poached by other agencies. 

Because a rent roll transaction is largely the transition of relationships, the way the landlords are informed and managed is vital to the success of any rent roll sale. In terms of the landlord’s options at this juncture, the rules vary from state to state. In Victoria for example, the landlords on the rent roll are given notice by the Vendor selling the rent roll that the assignment will happen within 14 days should they not object to the assignment. In N.S.W. the requirement is to obtain a new authority in the name of the purchaser.