The Value of the Property Management Rent Roll Copy

Every management agreement that the agency has in force represents an income to the business – from management fees and the other charges detailed above.

The rent roll (the total of management agreements) represents a significant income producing asset.

Currently, rent rolls sell for approximately $2.50 – $3.00 per dollar of management fee income (varies from state to state), which means that the value of this example rent roll could be in the region of about $728,000 – $873,600.

However, the final value could vary from this figure, depending on the quality of the managements, and the quality of the tenants.

Agencies also buy and sell small portions of managements. Let’s assume that the agency above has 20 managed properties in a suburb 15km away, which they find expensive and time consuming to manage. They may decide to sell these and offer them to a more local agency to manage.