Congratulations on securing your new rental portfolio – exciting times ahead! But before you celebrate, let’s take a moment to talk about something important: the rent roll retention period.

When buying a rent roll portfolio, the retention period [typically 90 days post-settlement], is the buyer’s safety net. It allows for claims if properties are unexpectedly lost, for example, if a landlord decides to self-manage, sells their property, or switches to another agency. These scenarios can and do happen, even with the best handover.

However, not every lost property is claimable. Some losses fall outside the protection of the retention period, especially if they’re linked to the buyer’s actions. Understanding what’s not covered can save you from headaches down the track.

 

when properties might not be claimable

 

Here are 2 common scenarios where claims may be denied:

 

1. buyer involvement in the sale

If the buyer has been actively involved in the sale, or profited from the sale it can complicate things. The retention period is designed to protect buyers from unforeseen losses, but if the buyer’s involvement contributes to the loss, claims may be challenged.

 

2. mismanagement or misconduct by the buyer

This one is trickier. If properties are lost due to poor management such as delayed payments, poor processes, unclear communication, or changes to terms – claims are often disputed. The sellers’ legal team will push back if there’s evidence that the buyer’s actions led to the loss.

 

how to avoid these pitfalls

 

The good news? These issues are preventable.

Here’s how you can prevent a claim from being denied during the rent roll retention period:

 

  • Get your team ready: Make sure your staff is trained and familiar with the new portfolio’s processes from day one.
  • Communicate clearly and early: Keep landlords informed, respond to their concerns, and ensure payments are timely.
  • Stay ahead of issues: Many landlords rely on rental income to meet mortgage obligations. A delay can cause serious friction -so stay ahead of it.
  • Best evidence wins: Keep records of any calls and copies of any other communication with landlords – without evidence a claim may become a case of ‘he said, she said’ between buyer + seller, leading to a disputed claim that may be difficult to resolve.

 

By staying organised, keeping communication open, and ensuring your team is on top of things, you’ll give yourself the best chance of minimising lost managements – no surprises, no disputes, just a smooth transition into your new portfolio.

 

we’re here to help

 

If you’d like to know more about rent roll retention periods or would like a confidential discussion about the current market status please feel free to reach out to our agency broking team at agencybroking@businessdepot.com.au or give us a buzz on 1300 BDEPOT.

 

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Originally published 4 June, 2025.