Quarterly Rent Roll Market Report – March 2023

With the January to March Quarter of 2023 complete, our team has celebrated transferring more than $519 million in Rent Roll, Agency and Strata Management Sales in our trading history.

In the March quarter, buyer enquiry was at all-time high. Real Estate Dynamics recorded 1838 buyer conversations across the East Coast, with many leaders looking to bolster their reoccurring revenues through their Rent Rolls as sales are declining in some markets. Many leaders are looking at both acquisition and organic accelerated growth strategies, understanding that choosing one will not provide the accelerated growth they want and need. One proven method for organic growth is through our highly successful BDM Performance Program.

In the past quarter, we have received 85 offers to purchase and have settled $20,516,395 in Rent Rolls. We currently have 39 contracts in various stages of completion.

Across the Eastern Seaboard, the highest multiple achieved in the past quarter was 3.7 times, and the average AAMI (Average Annual Management Income) was recorded at $1,575.00 on settled sales. There are many factors that affect a multiplier and our team would be happy to talk these through with you.

In Queensland, the highest multiplier was recorded at $3.25 for the quarter. A sale on the beautiful Sunshine Coast was completed at record speed and at a top price. The Seller had concerns about the identity of the Agency being recognised, a Buyer match in our CRM round the right buyer fast. Both the Seller and Buyer were delighted with the outcome.

New South Wales recorded a multiple of $3.70 for a Rent Roll northwest of the Sydney CBD. In New South Wales particularly, we have seen a desire for not only the acquisition of the Rent Rolls, but the staffing resources that come with it. Leaders are citing that it is harder than ever to find property managers in NSW.

In Victoria and Tasmania, $3.61 was the highest recorded multiplier this past quarter. The appetite from Buyers, particularly in the Blue Chip areas in Victoria, is strong.

Our current advice to anyone thinking of selling their Rent Roll or Agency in the coming few years is to get prepared. Real Estate Dynamics completed 202 free summary appraisals on Rent Rolls in the past quarter, with many leaders wanting an update on the value of their business and confidential advice around their proposed exit strategy. Another common question our team answer is how Leaders prepare operationally and financially. A good place to start is with your accountant – what will your tax position look like if you sell your Rent Roll?

Our advice to buyers is also to prepare well. If finance is required, pre-approval will almost certainly put you ahead of buyers who do not have it in place. We have noticed some lengthy periods with some banks and financial situations this past quarter, so prior preparation will serve you well. A typical conversation from our Brokers with buyers includes the capacity running rate of their acquisition – what do the operations look like as a whole once two or more Rent Rolls are combined into one, and what recourses should they have in place to absorb the acquisition?

We hope you have found this update helpful and if you have any questions that Australia’s largest Brokerage Team can answer, please fill out the form below and we’d be delighted to help you.


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