We’ve seen some really promising trends in the rent roll market as of late. As a result, we’re seeing multiples on their way up to pre-GFC levels.

Today I bring another episode from my ongoing ‘raw and real’ series over on my LinkedIn [where I keep my followers up to date on all the latest news + strategies that the best agents are using].

I recently caught up with Teri Roberts, Director and Senior Business Valuer at Gil Wright & Associates Business Valuations. As a business valuer with a specialisation in rent rolls and real estate, Teri pays close attention to the trends in our market, so I jumped on the opportunity to get her insights!

She notes that rent rolls have proven to be a very resilient asset class, and with increased rents, it’s no surprise that multiples have been on their way up… check out her full thoughts below:

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transcript from dean and teri’s conversation

Dean:

Hey, everyone, it’s Dean. I’ve got Teri with me. She’s going to tell us about what trends are happening out there at the moment.

Teri:
Okay, well, as we all know, it’s been a pretty strong growth period for rent rolls and the property market. So the trend that we’re seeing is a large number of buyers in the market, because rent rolls have proven themselves to be a very resilient asset class over the last couple of years. Increased rents are occurring across most regions of Queensland, and that has resulted in increased multiples. We’re actually seeing some multiples being achieved now that are in line with what we saw back pre-GFC, so over 12 to 15 years ago.

Dean:

About time.

Teri:

Where the market was very, very strong again before the earth seemed to crash out of everything. So we’re starting to see some of those multiples even getting close to mid-3s. We haven’t seen that yet, but we’re getting there, and we’re on the way up.

Dean:

We’re working on it.

Teri:

Working towards it, I think, yes, everyone’s working towards it. Everyone would love that. And that’s resulting in, we’re seeing a lot of interest in portfolios when they come on the market. Not necessarily seeing more portfolios come on the market, though, because of the resilience of the asset class. You know, people that have a good rent roll want to keep hold of it, because they know of the income growth still to be had. So, really, yeah, the trend is it’s a strong market. It’s improving, getting better, and hopefully getting back to the good old pre-GFC days, where a rent roll was worth a good deal of money.

Dean:

Great advice. Cheers.