Opulence Consultancy offers the following Real Estate Agency Business Valuations:

• Rent Roll Valuations (Property Management Department)

• Sales Department Valuations

• Whole Agency Valuation (Property Management and Sales Department).

We can undertake the above valuations depending on your requirements and upon our initial discussion we will consult with you to understand and determine the purpose of the valuation. 

The most common type of real estate agency business valuation is the Rent Roll Valuation otherwise known as the market valuation of the property management department.

The property management department is the asset of any real estate agency.

When discussing rent rolls with other business owners, business brokers, financiers and consultants, you will hear the word “Multiplier” being used.  This is the Industry Rule of Thumb Methodology which adopts a multiplier paid based on the annualised management fee income per property i.e. 3 times annualised management fee income per property. 

To determine the management fee income calculation is worked out as, weekly rent x commission rate / 7 days x 365 days. 

The 9 Factors Affecting the Value of your Rent Roll include:

1. Current Economic Conditions

2. Location of Your Office

3. Annualised Management Fee Proper Property

4. Vacancy Rates & Arrears Rates

5. Property to Landlord Ratio

6. Additional Income Streams

7. Dispersement of the Portfolio

8. Due Diligence.

9. Historical Rent Roll Sales

As part of the valuation service, Opulence Consultancy checks approximately 10% of the rent roll portfolio.  This is not a due diligence on the rent roll, simply a check to confirm that the fees advised in the property management software match the management agreement and tenancy agreement.

For more information and a Free quote contact Tarsi today or 0420 909 940.