You’re standing at the front door for the open home and you know the reaction you’re going to get from buyers when they step into the house: “OMG! This place needs so much work!” Agents know that a ‘renovators delight’ rarely delights anyone, and buyers often run from a property that needs major work. It’s no different when I’m selling a real estate agency.
But what’s the rent roll equivalent of a major reno? And when can a “coat of a paint and some garden mulching” do the job?!
If you still have a ton of old Form 20A’s that’s a job that needs attention before you sell your rent roll. Had a slack BDM whose Form 6’s are missing signatures all over the place? Can’t see half your properties on the RTA bond report? These are the equivalent of gaping roof leaks and missing floorboards that do need fixing before we invite the buyers through.
But a handful of missing tenancy application forms may not be a deal-breaker. If there’s some ECR’s that can’t be found that’s not ideal but, like a deck that needs re-sanding, it won’t stop most buyers. A rent roll is sold on its compliant Form 6’s – that’s the core of your asset.
I don’t want to understate the importance of a tidy rent roll and there will be some items that can be followed up by the seller during the sale process. A pool safety certificate or a copy of by-laws. Having everything in place, a 100% compliance, makes the properties simpler to manage and a handful of buyers will insist on these. But most recognise that every rent roll has some flaws.
If you’re ready to sell I say you should deal with the ‘tidy up’ tasks only. Delaying the sale can do more harm than good because an unhappy principal is not likely to inspire a great team culture or performance. Rent rolls shrink then this happens.
Most rent roll buyers are looking at the bigger picture and the opportunity this brings them and their business. They know they can do that freshen up at a later date if the bones are good.
And the buyers who will only take a ‘fully renovated’ rent roll? They’re often left waiting on the sidelines.
If you’d like a confidential chat about getting your rent roll ready for sale, I’d love to help. I’m on 0423 332 022 or rob@honeycombe.com.au