What factors influence the purchase price of a rent roll?

There are a number of factors that influence the value of a rent roll;
1. Number of properties managed
2. Ratio of landlords to properties
3. Geographic spread of the properties managed
4. The commission rate
5. Amount of sundry income charged such as letting fees, postage etc
6. Length of time each property has been managed

Using a broker to sell your rent roll

What is the first thing a prospective seller should do?
The principal should conduct an audit of all the management authorities. It is is important that the authorities are up to to date, particularly with the correct entity name and ACN noted as the agent. Ensure that the authorities do have a clause to assign the managing agency rights to another licensed agent as this will decrease the need to obtain a new authority from the client once you have sold the rent roll.