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Building, buying or selling a rent roll for profit

Building, buying or selling a rent roll for profit.

 

There are 3 phases in the lifecycle of a rent roll…

  1. From start-up there is an early growth phase.  In most real estate businesses, this will occur organically, generally from sales, leasing or alternatively via rent roll acquisition.  From these seeds the rent roll asset base will germinate.  This is a wealth creation phase.
  2. The next phase is the ‘sweet spot’ where property management services are optimized in terms of rent roll size, service delivery and profitability.  The metrics for this phase will be variable, depending on the financial and other objectives of individual owners.  This is a wealth preservation phase, in which the rent roll asset is ‘honed’ to maximize the efficiency, profitability and therefore value of the rent roll asset.
  3. The final stage is a wealth realization phase, in which some or all of the rent roll is sold, to facilitate owner exit plans, or new equity participation.  Rent rolls are often ‘refreshed’ via partial realization of sub – optimal managements, sometimes for reinvestment in new efficiency – enhancing technology or superior rent roll acquisition/s.

At BIQ, we have buyers and sellers, in all stages of rent roll development and divestment.