Good or bad; the stratospheric uptick in the national property cycle is finally broken and the economic impacts will be many.

A bleak future is there for all to see.

So why is it, that more rent rolls are being sold than ever before and multiples keep rising?

Clearly there is a ‘perfect storm’ of events bringing this about.

• For some long-term owners looking to exit their businesses; the downturn and possible impending recession is the final straw.
• Equally, property management employees are leaving traditional employment in droves; many, to start up their own businesses – working from home or from co–working spaces.
• At the same time a national rental crisis is occurring, the upshot being – record low vacancy rates and rentals poised to soar.
• Long term population increases are occurring particularly in the middle suburbs, whilst at the same time rental supply is diminishing.
• The property sales market which has historically fed the rental investment market is declining.
• There is a chronic underbuilding of new housing supply, which is exacerbated by increasing development company insolvencies as recession like conditions take hold.
• And the flight of sea and tree changers to regional areas has absorbed the limited supply of housing, particularly, near city areas.

Rent rolls provide valuable cash flow in uncertain times and are a platform for property sales. They can be scaled up or down to suit big or small rent roll buyers.

So, whether it be large businesses aggregating, or former employees seeking a new lifestyle through self-employment; the demand for rent rolls increases.

Greater competition for limited opportunities, is pushing up multiples and therefore rent roll values.

As average rents increase in a tight rental market, average management commissions increase also.

These are the factors that drive the organic increase in rent roll values and why purchasers are looking increasingly to buy rent rolls; particularly in these uncertain times.