The measurement of a successful rent roll has nothing to do with size, according to one leading real estate trainer.
Property managers and business development managers (BDMs) who purely strive to increase rent roll sizes are missing the mark said Nathan Brett, director of Real Estate Dynamics.
“There is still a misconception in our industry that the bigger the rent roll, the more money they make,” Mr Brett said.
“This is simply not true.
“We see small rent rolls making large net profits, we see large rent rolls making small net profits and vice versa.”
According to Mr Brett the worth of rent roll does not come down to its size but its net profit.
“Profit and growth is what matters. Some business owners are quick to talk about the revenue their rent rolls are making. But with all due respect, who cares?” he said.
“Revenue is the income received, not what you deposit into the bank after your expenses are paid.
“Winning rent roll businesses don’t use revenue as an indicator of their performance; they focus on net profit, how much they can deposit into their bank each month.”
The key to creating a more profitable rent roll comes down to seven major points: exceptional landlord and tenant care, internal growth, external growth, creating a winning team, seeking a winning team, seeking opportunities and systems used by professionals.