Buying a Rent Roll? How the Acquisitions Base prepares your team
When we built the Acquisitions Base to simplify the process of buying rent rolls, we knew it was going to be a massive challenge. And we were not wrong! It took a lot of time, effort, and resources due to the complexity of what we were trying to achieve.
Ultimately, the goal was to create more peace of mind when going through a rent roll acquisition, whilst also setting your team up for success.
And we have seen many businesses successfully utilise the Acquisitions Base to empower themselves and their teams during the complex process of buying a rent roll.
So what is the Acquisitions Base and why is it needed?
The Issue – Due diligence is tedious but vital
It’s astounding how many people don’t do effective due diligence when purchasing a rent roll, especially when it can be such a large investment.
These business owners often wait too long to find that properties are missing important documentation (Form 6s, applications, entry reports, etc.), landlords & tenants don’t know what’s going on with the change of management, or even struggle to retain properties due to unforeseen circumstances.
The acquisitions process is already stressful enough, without having unexpected surprises.
In the normal sale/purchase of a business, there would be a checklist to go through, and there is always the option to do this in real estate, however a lot of business owners don’t know what done looks like, and they don’t know where to start, and they will “pop into the office” to have a look through a handful of properties (just like spot checks/audits) as their due diligence process.
The due diligence time in an office can now be used more effectively, rather than sifting through paperwork.
Visibility
The Acquisitions Base, built by STAFFLINK, systemises the rent roll health and allows the buyer and seller to be part of the same environment. This is beneficial for both parties as it’s in their best interest that the transition goes smoothly for each side.
This provides complete visibility on the whole process, including the information that is needed and cross-checks can be completed, such as:
- Property status
- Entry condition report
- Owner upload
- Tenant upload
- Key number
- Bank account audit
- Internal checks
- Property portal check
- Routine complete
- Owner call
- Insurance up to date
- Contact preferences
- Billing preferences
- Communication history during this process
- NPS (Net Promoter Score)
In addition to this, the data and tasks required can be drip-fed into OneDash, providing a more manageable workload for staff assisting with the handover.
Retentions
If an acquisition doesn’t go smoothly, the retention clause can come into effect.
For those who aren’t familiar with the retention clause, it’s commonplace in rent roll transactions, allowing the new owner of the rent roll to claim back the value of lost managements within a specified time frame.
With the Retention tab, all incidents and lost managements will be recorded with the reason and supporting evidence, which can be supplied to solicitors where necessary.
A more enticing sale
If you’re selling your rent roll, the acquisitions base can be filled and prepared before taking your rent roll to market. This would be extremely enticing to a potential buyer.
Read our other tips on getting your rent roll healthy here.
Preparing a business for sale can take up to 12 months, which can be a huge workload if things are unorganised. In an industry where business owners are often already time-poor, making this process easier is going to be of significant benefit.
Conclusion
The acquisitions base has changed the way teams look at taking on rent rolls – they can now be well organised and have clear visibility, with all property information prepared and at hand for the PM staff.
Get a better idea of what the health of the rent roll looks like with the Acquisitions Base from STAFFLINK.
