Want to buy a rent roll? Do these 5 things first
Acquiring a new rent roll can set your business up for future success and take your agency to the next level, or it can be a complete nightmare!
What explains why some rent roll acquisitions are relatively seamless, while others are frustrating for all those involved? And what can businesses do to make sure they lay a solid platform?
In our opinion, there are 5 essential steps to take before pulling the trigger on purchasing a rent roll, ensuring a smoother transition and setting yourself up for success.
Get Your Systems and Processes in Order
While smaller agencies and property management departments may have the flexibility to do things “their own way,” this approach can be a recipe for disaster when aiming for growth.
Establishing standardised systems and processes is essential for scalability. It ensures consistency and efficiency and enables easier integration of new portfolios.
Implementing property management software, creating documented property management workflows, and defining key performance indicators will streamline operations and facilitate seamless growth.
One such indicator is Net Promoter Score (NPS). This metric is a reliable indicator of customer sentiment over time and can you a good guide if your systems and processes are working well.
Tracking your NPS score will tell you whether your systems and processes can handle the addition of a new rent roll. If your customer sentiment is poor then this may not be the best time to expand.
Want to know more about how NPS can be used within your business? Read this blog.
Ignoring systems and processes and expecting your team to fill the gap is a recipe for disaster.
Get Your Tech Stack Sorted
Only 25% of Property Managers are completely satisfied with their current software setup.
For an industry that relies so heavily on technology, this is pretty incredible. Because having your tech stack sorted is crucial for managing a larger rent roll effectively.
This means having integrations with all major tech platforms used by your team to avoid constant jumping between applications.
A well-optimised tech stack provides a comprehensive overview of your business at a glance, allowing you to monitor key metrics, analyse data, and make informed decisions.
Furthermore, it enables effortless collaboration and sharing of work within your team, fostering efficiency and productivity.
Build Capacity in Your Existing Team
Expanding your rent roll means asking more of your team members, so it’s vital to ensure they have the capacity to handle the increased workload.
Consider restructuring your property management department to optimise the use of offshore staff, freeing up customer-facing team members from unnecessary activities that don’t maximise their time and expertise.
By focusing on roles and responsibilities, leveraging technology, and providing ongoing training, you can enhance your team’s capacity to handle a larger rent roll.
Ensure Your Existing Rent Roll is as Healthy as Possible
Before you buy a rent roll, it’s essential to evaluate the health of your current portfolio.
Ask yourself critical questions to determine its robustness.
- How would losing your top-performing staff members impact your revenue and profit margin?
- Do you have a reliable recruitment pipeline to fill potential gaps?
- Can your team cover for each other effectively during holidays or sick days?
Assess your reputation in the market and ensure it is supporting future revenue growth.
Taking steps to strengthen your existing rent roll will ensure a solid foundation for expansion.
Want to know more about the health of your rent roll? Answer these questions.
Have a detailed expansion and recruitment plan
Your newly acquired rent roll will have far-reaching impacts on the operations of your business. Not least the size and structure of your team.
It is absolutely critical that any acquisition or expansion of your business is well-planned for.
Key considerations include:
- Will staff will be included with the rent roll, and if this is the case, what is the process for training them in your existing systems?
- What is the capacity of your property managers? Will they have the capacity to assist with onboarding?
- What role is there for offshore team members to play? Do they have a consistent process to follow?
- How will management maintain visibility over the newly acquired staff and properties?
Conclusion
Purchasing a rent roll can be a significant milestone for your property management business.
However, it requires careful preparation to set yourself up for success.
By doing the following, you’ll be better equipped to handle the challenges and opportunities that come with growth.
- Getting your systems and processes in order,
- Sorting your tech stack,
- Building capacity within your existing team,
- Ensuring the health of your current rent roll
- Having a detailed expansion and recruitment plan
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