Primary and secondary factors relating to rent roll value

When determining the value of a rent roll, there are many different factors that come into consideration. What are these factors? you may ask. Below we have broken down the primary and secondary factors when having your rent roll valuated.

Primary factors

  • average rent
  • average management fees
  • number of properties
  • location of rent roll
  • comparative sales

Secondary factors include

  • Owner to property ratio
  • Profitability
  • Secondary income such as let fees, inspections, admin, marketing, maintenance
  • Branding, social media, domains
  • Other assets
  • General spread of the portfolio
  • Staff in place – experience level, current salaries
  • Arrears rate
  • Vacancy rate
  • Cleanliness of book, keys, bonds, inspections up to date, the status of smoke alarms, insulation, general tenancy documentation, and management authorities

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