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Property managers who get seduced by the thought of buying a rent roll may be losing sight of the resources needed to manage the new properties effectively.
MC Rent Roll Broking director Matt Ciallella said acquiring a rent roll will inevitably mean taking on more staff, which can help alleviate the workloads of current property managers.
“If your property managers say they’re at capacity, then it is time to consider an acquisition because it is going to give you that income and growth straight away,” Mr Ciallella told RPM.
He said the best place to source new staff is from the company selling its rent roll.
“The smartest thing to do is hire the property manager attached to that rent roll. If you don’t hire them, I guarantee they’ll start poaching those managements.
“If you hire that property manager and bring them across with the acquisition, you can put them on a new employment agreement in your company so that if they’re not the right fit for your business and they eventually try to poach, you actually have legal grounds to stop them.”
According to Mr Ciallella, businesses that should be looking to acquire rent rolls will notice that they’re not receiving enough revenue and staff are managing too many properties.
The only way to do that is to bring more properties under management so you can bring on another staff member, he told RPM.
“By redistributing the number of properties under management, you’re actually getting them to do more business development or offer a higher-quality service to existing clients, which will also help set your business up into a much more efficient structure.”
