What Is My Rent Roll Worth? Get a Valuation or Value Estimation of Your Rent Roll
“What is my rent roll worth?” This is one of the most frequently asked questions we hear at Real iQ. Both business owners and principals need an answer to this question, and we can help. Just as you wouldn’t estimate the value of a house without seeing it, the same goes for a rent roll. You can make a rent roll estimation – basically an educated guess – based on factors such as location and size. However, coming up with an accurate answer to this question is more complicated than many people realise.
To complete an accurate rent roll valuation, we provide an “Opinion of Fair Value,” which is a comprehensive, detailed report that outlines all contributing factors that affect how we determine the worth of your business. This report is based mainly on the provided factual information.
To complete your rent roll value estimation, we will need you to provide this information, which includes a list of your properties and their current rent and management fees. We’ll also need a list of tenants, and a list of owners and their properties, a list of any tenants who are three days or more in arrears, and a breakdown of revenue including six to twelve months’ worth of management and ancillary fees.
What Factors into the Outcome?
To provide you with an accurate rent roll estimation, we take certain factors into consideration. A few of these include the demand for rent rolls in your location, recent sale records, the size of the rent roll, the property-to-landlord ratio, the geographical spread of your properties, and your rent roll’s performance over the past six to 12 months. When we have looked at all of this as well as other factors, we will come up with a multiplier based on the factors listed above, and use this multiplier to help determine the Opinion of Fair Value. In general, we do not take revenue from certain sources (such as ancillary fees and letting fees) into consideration because these tend to fluctuate and are not typically consistent.
Besides “What is my rent roll worth,” another question we often hear is, “How long will it take to complete my Opinion of Fair Value?” The answer depends on several variables such as size and the quality of information provided. However, most of the time, we can complete this report within two to five business days. If you do not find the opinion agreeable, we can revisit the assessment and seek a second opinion, and you are encouraged to do the same.
Rent Roll Value Estimation by Real iQ
At Real iQ, we are one of the few recognised companies that provide rent roll valuation in New Zealand. We avoid using templates and, instead, utilise a tried-and-true system that we have spent decades perfecting to provide you with a comprehensive assessment of your company’s market value. Contact Real iQ today for a confidential and no-obligation consultation.