Selling your rent roll can be a worthwhile endeavor when you know what works. You could get a significant return from your rent roll when you sell it to a property management company. Many groups are willing to pay top dollar for your rent roll.
But you must ensure the transaction is smooth and simple, and that it also portrays your roll in a positive light. You can plan a few points for how to sell your rent roll that fits your needs.
Make Things Sellable
Having a quality rent roll is useful, but it should also be realistically sellable. Having a rent roll with thousands of entries might be tough to manage.
You can sell your rent roll by grouping your existing roll into specific zones or areas. You can include hundreds of items in a select local area. A smaller rent roll may feature sellable pods that are close to one another and have consistent management fees. Smaller sellable pods can make a difference when you highlight your work.
Establish a Sensible Sell Date
Look at the market you’re in and how well your rent roll will change in value after a while. A sell date will let you plan and review how the market will change. You can set up your sell date based on how many clients you have on your rent roll and how the market is shifting.
Review Your Financial Situation
Take note of where your finances are before selling your rent roll. Are the renters on your roll regularly on time? Do you collect enough money to offset whatever expenses come with maintaining your property? Be sure your financial situation is positive when figuring out what you’re doing when selling your rent roll.
Explain the Value of Your Rent Roll
The financial numbers surrounding your rent roll can be valuable, but that’s not the only thing to see surrounding how to sell your rent roll. You should have a sensible story surrounding your rent roll that shows what makes it so valuable.
A higher management fee can produce a more valuable rent roll. You could also have more owners with smaller numbers of properties to produce a more valuable roll, as the risk is minimal.
Whatever the case, your rent roll should come with a story that showcases what makes your property as valuable as possible. Your rent roll story can include points like these:
- How long your rent roll has been in operation
- Who you’re targeting the most with your rent roll
- What makes the properties on your rent roll so viable
- The unique services you will provide
- The growth opportunities available
- Any holiday lettings or other features available for rentals
- The general rental fees you charge
- How often people will rent out your properties, plus how long those people will stick around
These points will highlight the perceived value of your property. Potential buyers will see that what you’re offering is useful and has a great possibility of being more viable.
Provide Enough Data About Your Property
The tangible details surrounding the property linked to your rent roll will highlight what makes your asset useful. You can include these details in your rent roll report:
- The physical locations of your assets, including whether they are spread out or are close together
- Vacancy rates, including if you have low vacancy totals
- Any utility considerations to follow, including if any additional charges are necessary
- Your owner-to-property ratio; this should be enough to where you can maintain a consistent profit
Your data can help possible investors see what makes your rent roll viable. You can show that your work is worthwhile and that you’re getting enough money into your property through your work.
Include Lease Copies
Prospective buyers will want to see how the leases for properties look and what people on the rent roll are managing in their work. You can include lease copies to highlight what people are getting out of your assets. You can use these lease copies to help people see what makes your assets useful.
Some unique conditions may appear in a lease. You can focus on things like what charges people must pay at certain times, how long it would take for a lease to work, and other factors. You can use these points to see what fits for any consideration that works.
Talk It Over With Your Staff
The next part of how to sell your rent roll is to discuss your plans with whatever staff members you currently hold. Talk with your staff about any concerns they hold surrounding the sale. You can talk about the sale based on:
- Any changes a possible new owner may hold
- How someone’s salaries might change
- What positions someone will hold while working
Your staff members should feel comfortable when you’re selling your rent roll. Everyone should be on the same page, plus they should understand what you’re trying to do when getting a sale out somewhere.
Highlight the Potential
The last tip to consider for selling your rent roll entails looking at the potential for your property to be profitable and viable. You must promote your property as one that is more interesting and unique to prospective renters. You can promote the potential for your rent roll to grow based on:
- How the market in your area is growing
- What makes your property so viable to prospective renters
- The potential for rents to increase in value, especially as inflation continues
- Any improvement opportunities available for the property your rent roll is attached to
Anything that provides a sensible potential for income is always worth highlighting when selling your rent roll.
