A rent roll is the management of multiple properties on behalf of different landlords by a real estate agency. The rent roll is also known as the property management department of a real estate agency.
The agency will find a suitable tenant for a property, collect rent from that tenant and handle any communication, maintenance, and legal requirements in accordance with the relevant real estate and tenancy acts. In return, the agency will receive remuneration in ways of management fees (a percentage of rent collected) and other fees and charges for completing relevant tasks.
The agency will require a fully signed and executed management agreement to be able to maintain and manage the property on behalf of a landlord. All fees and charges will be outlined within this agreement.
Rent Rolls achieve recurring income as outlined in the management agreement. The key to have recurring income is have a property tenanted and ensure the tenant is paying their rent. Because of the cash flow model, financiers will lend against a rent roll. This asset is the saleable part of any real estate agency.
Written by Tarsi Hynes, Director of The Tarsi Way