Are you looking to purchase a rent roll in the next 3, 6 or 12 months? What should you look at internally or externally?
These are the important considerations so you have your office in order and ready for an acquisition;
INTERNALLY
- Understand your finances and what you can afford.
- Organise your finance early and be ready to purchase.
- Research how many properties you can purchase and what the purchase price looks like.
- Ensure you have enough staff to bring a new acquisition into your office. Decide if you need to take on existing staff that may be attached to the new rent roll.
- Ensure best practice is employed in your office. Make sure you are on top of your existing routine inspections, compliance as well as repairs and maintenance.
- Prepare your office before taking on more work to ensure a smooth transition for everyone involved.
EXTERNALLY
- Prepare a target list of competitors you want to acquire.
- Start making approaches, calls and meetings with the offices you feel are similar to you office.
- Consider the staff attached to the rent roll and the remuneration in place along with how that compares to your existing staff arrangements. It’s important to ensure the purchase is profitable and won’t upset your existing staff and office culture.
- Know your numbers so you don’t waste anyone’s time. Put yourself in the shoes of the seller and be realistic with your offer. Don’t be afraid to acknowledge that some rent rolls may be better than your existing rent roll and the value should reflect that.
For assistance on purchasing or tips to consider when purchasing a rent roll, please feel free to call Matt Ciallella on 0404 668 972 or email matt@mcrrb.com.au.