How Property Management Brokering and Rent Roll Brokerage Work
Buying and selling rent rolls can be much more complicated than it appears. Property management brokering is typically a far more involved job than that of a real estate agent. It may seem as though rent roll brokerage is simply about establishing the value of a company and finding an agent who is interested and ready to buy. However, such a transaction involves several steps and nuances that require someone who is trained and experienced in property management rent rolls. A successful and reputable rent roll broker will ensure that all the necessary steps are covered, such as:
It’s important to understand why the vendor is selling in the first place. For example, someone who is looking to retire will likely want to sell their entire rent roll and may be concerned about the future of the landlords they have developed relationships with as well as their staff. Other vendors may be interested in refining the nature of their company and may be selling only part of their rent roll while maintaining their premises and employees. The others are a combination of both types of sellers and would like to remain involved with the business in some capacity. Determining the overall goal when it comes to a vendor’s rent roll property management sale helps a broker recommend an appropriate strategy.
The broker will assess the rent roll’s properties. What types of properties are they? For example, are they mainly suburban houses or inner-city apartments? Do the landlords have just one or two properties or are they big investors with growing portfolios? These first two steps will help establish who the most suitable buyers are and start the valuation process.
After completing the first two steps, the broker will work on finding potential buyers, consulting with the seller on a strategy for approaching the list. Experienced brokers will have industry connections and local knowledge to help navigate this delicate part of the process.
Once the broker and the seller have agreed on a strategy, the broker can then begin contacting prospective buyers, which is done discreetly because the seller will usually not want his landlords or staff to know what is going on just yet. Prospects are researched thoroughly to determine their suitability. Sometimes, it’s necessary to split property management rent rolls among multiple buyers.
The broker meets with both the buyer’s and the seller’s solicitors to ensure there is a mutual agreement. Particularly when there is more than one buyer, this phase can involve a lot of negotiation. The broker will also ensure that the required financing is in place and ready for the settlement.
Rent Roll Brokerage through Real iQ
At Real iQ, we understand that property management brokering can be highly complex. However, we have the education and experience to handle your transaction with confidence and integrity. We make it our priority to conduct smooth transactions and provide our clients with the best possible service. Contact Real iQ today to learn more about rent roll brokerage.