Are you considering selling your rent roll but are unsure of the impact COVID-19 may cause? All sectors of the real estate industry are adapting to a new way of doing business. From sales to property management departments, agencies are reworking the ways they conduct business and inventing novel ways to achieve results in very different working environments.
Whilst it may be a very different landscape to what we are used to, it is not all doom and gloom. If you are considering selling your rent roll during COVID-19, you might have questions about the numbers of buyers or the offer price. Well, we have some reassuring information for you.
Here are the trends we’re seeing in the current COVID-19 climate on rent roll sales.
6 Rent Roll Trends in the COVID-19 Environment
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Rent Roll deals are still proceeding
Yes, sales are still happening, with a few tweaks. We are seeing longer settlement periods and extended payment options negotiated into the contract.
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Vendor finance
The offer of vendor finance options is being made to entice more buyers to the market. We are seeing this where typical finance options are not on offer.
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Alternate Investment Opportunities
Investors are on the hunt around for alternate investment opportunities. Currently, the highest term deposit on offer returns approximately 1.8% pa. This is compared to returns on a rent roll investment of up to 3-4 times per $1.
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Private Wealth Investment
Private wealth companies are seeking good investment options for their clients. A well-performing rent roll is a highly desirable private wealth investment option.
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Existing agents are looking to diversify
Long term agencies operating in the Retail, Industrial and Commercial spaces are experiencing a complete downturn. Therefore, the savvy ones are looking for an alternative to ride out the pandemic. They are looking to diversify and are considering investing in the Residential market.
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Job Security from New Investors
There is a new wave of buyers as a result of the massive job losses across a range of industries. These new buyers are looking to enter the market to purchase themselves job security. They are using their super or savings to fund the purchase.
The bottom line is if you are considering selling your rent roll, don’t let COVID-19 be the reason alone to stop you. There are still buyers out there. Our team can help out you in contact with the right buyers, even in difficult times.
Jane Morgan is the Licensee in Charge of Rent Roll Angels & Director at End of Month Angels. Jane isn’t just your average broker. She is an industry veteran with over 23 years in the industry, 15 years as a Property Manager and an active Real Estate trainer. She knows the pitfalls & successes of rent roll acquisitions like the back of her hand. Contact Jane today to discuss your rent roll requirements.