Did you know that right now could be the ideal time to sell your rent roll or agency business?
Macquarie Bank’s Business Barometer Survey reported that 57 per cent of business leaders intend to grow their businesses over the next 12 months, while only 2 per cent were looking at selling their businesses.
The survey was conducted in December 2021, capturing the views of close to 1800 business leaders across Australia about the experiences and challenges they faced through the COVID-19 pandemic.
Despite a rocky couple of years, 82 per cent of real estate businesses indicated that they have a positive outlook for 2022.
I have seen evidence of this, with agency owners taking advantage of the strong selling market to reinvest back into their businesses.
My database of interested buyers has surged to over 1000 registrations, which is the most activity I have experienced in a long time.
I have seen very strong demand for rent rolls and agencies going to market, with many of my clients opting to call for expressions of interest rather than listing an asking price.
This is because it is becoming more difficult to accurately assess what buyers are prepared to pay. As demand increases, so does the selling price.
Even listings that I have marketed with an asking price have invariably sold for more than what they were advertised for, which is a welcome trend for potential sellers. Who does not enjoy being paid more than what they expected?
SQM Research reported 12-month increases of 14.7 per cent in capital city house rents, with unit rents rising by 11.2 per cent.
The upward trend of rents means that rent rolls have strong future growth potential, which makes them even more attractive as a means of bolstering an agency’s bottom line.Â
The research also revealed that the national vacancy rate fell to 1 per cent in March 2022, the lowest it has been since 2006.
The low vacancy rate suggests that most properties are already being managed by someone, with less owners and investors looking for property management services.
Buying an existing rent roll saves an agency the time it would take to look for new clients in a competitive environment.
The current market conditions are therefore well in your favour if you decide to sell your rent roll or agency business.
For agencies looking to take their businesses to the next level, your rent roll could be the golden ticket they are looking for.
You may have been thinking about retiring soon, taking your career in a whole new direction, or joining the ranks of the Great Resignation. Whatever your reason may be, this could be the perfect time to go for it! As the saying goes, strike while the iron is hot.
