Rent Roll Financing: How Much Can You Borrow?

When purchasing or refinancing a rent roll business, lenders typically offer 3 x EBITDA (earnings before interest, taxes, depreciation, and amortization). For example:

• EBITDA = 1,000,000∗∗→∗∗Loan amount ≈ 3,000,000∗∗→∗∗Loan amount≈ 1,500,000.

Loan-to-Value Ratio (LVR):

• Most banks require 40–60% LVR.
• Need to borrow over 60%? Use a guarantor or additional collateral.
• Minimum threshold: Many lenders won’t finance rent rolls valued under $500k.

How Are Rent Rolls Valued?

Rent rolls are priced using a Rent Roll Multiplier (RRM) applied to annual management income.
Step 1: Calculate Annual Management Income
Formula:

• (Weekly Rent ÷ 7) × 365 × Management Fee % (ex GST)
• Excludes ancillary fees (e.g., re-letting, advertising).

Step 2: Apply the Rent Roll Multiplier
Typical RRM range: 2x–4x, depending on:
✅ Key Factors Affecting Multiplier:

• Average weekly rent & commission %
• Property type, arrears, and vacancy rates
• Geographical spread and landlord ratios
• Compliance (e.g., Form 6)
• Economic conditions and interest rates

Example:

• Annual management income = $1,000,000
• RRM = 3.5 x → Valuation = $3,500,000

As specialists in rent roll acquisitions, we partner with financial brokers, tax advisors, and industry experts to:

• Negotiate interest rates 2-3% lower than standard offers.
• Secure flexible terms tailored to your cash flow.
• Fast-track approvals with pre-vetted lenders who understand rent rolls.
• We Answer Critical Questions:
• How do you structure loans to minimize cash flow strain?
• Which lenders favour your property type or portfolio size?
• What assets qualify as security (e.g., rent roll, property, guarantors)?

Why Choose Us for Rent Roll to buy or sale your rent roll?

1. Unmatched Industry Expertise
15+ Years in Rent Roll Transactions: Our deep understanding of rent roll multipliers (RRM), EBITDA valuations, and lender criteria ensures you receive accurate, market-aligned pricing.

Exclusive Market Insights: Access off-market listings and emerging opportunities through our nationwide network of agencies, investors, and lenders.


2. Tailored Strategies for Maximum Value
For Sellers:

Optimize your sale price with data-driven valuations, highlighting strengths like low arrears, high retention rates, and ancillary income streams.

Strategic marketing to premium buyers (e.g., agencies expanding geographically, PE-backed consolidators).

For Buyers:

Identify undervalued portfolios with scalability potential (e.g., under-managed fees, latent rent increases).

Negotiate favourable terms using proprietary benchmarks for LVR, cash flow, and staffing efficiency.


3. Seamless End-to-End Support
Due Diligence: We audit compliance (Form 6), lease terms, and body corporate dynamics to mitigate risks.

Finance Bridging: Partner with our trusted lenders to secure competitive rates (2–3% below market averages).

Transition Planning: Retain landlords and tenants with proven handover protocols, minimizing disruption.

Ready to Maximize Your Rent Roll’s Potential?
Whether you’re buying to scale or selling to capitalize, we’re here to ensure you achieve more than just a transaction—a strategic advantage.
📞 Call us today 0404 331 310 for a free portfolio assessment or to explore hidden opportunities in the rent roll market.

FAQs: Rent Roll Finance Q: What is a Rent Roll Multiplier (RRM)?
A: A formula to value rent rolls based on annual management fees. Higher RRMs reflect lower risk (e.g., stable arrears, prime locations).
Q: How do banks assess rent roll loans?
A: They prioritize EBITDA stability, LVR, and compliance. Ancillary income (e.g., leasing fees) is often excluded.
Q: Can I finance a rent roll under $500k?
A: Yes, but options are limited. We connect you with niche lenders for smaller portfolios.