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QLD's highly sought after accommodation business
OverviewThis accommodation business holds a commanding presence in the Brisbane rooming accommodation market, catering to students and working professionals typically aged between 18 and 35 years old. As the largest decentralized accommodation agency in Southeast Queensland, it boasts significant market share, managing 838 tenancies across 80 locations, with an impressive 99.28% occupancy rate as of March 2024.
Strategically located near its two offices in inner city and Southside of Brisbane, This business's properties primarily inhabit University-anchored suburbs of Brisbane. Since its establishment in 2015, This business has grown to manage over $200 million worth of residential real estate, remaining independently owned and debt-free.
With a robust brand identity and a history of excellence, This business is a preferred choice for investors in both rooming accommodation and the burgeoning Build to Rent market. Its investor base spans various development stages, including a promising pipeline of 200 tenancies set to come online in the next three years. Notably, it oversees the final stages of a purpose-built accommodation project, comprising 22 bedrooms, scheduled for launch in June 2024.
Compared to traditional real estate agencies, This business's fee structure stands out, with over $550,000 additional fees charged beyond base management income.
With fully documented management systems and digitalized handling of all documentation through top-tier software, This business ensures operational efficiency. It supplements its domestic team with an international administration company to manage workload and stabilize labour costs amidst wage inflation. Moreover, its emphasis on staff retention promotes client stability and facilitates seamless ownership transitions.
Under the leadership of a seasoned business manager and client liaison officer boasting a collective nine years of experience with the business, This business showcases a track record of consistent business growth over the past three years. Bolstered by robust trading income and a healthy net profit line, the business' financial performance underscores its stability and success.
A COMMANDING PRESENCE
Managing 830+ tenancies
Spanning 80+ locations
99.28% occupied as of Mar-24
85% of leases 12-month in length
A BURGEONING PIPELINE
5 x Development Approval obtained in place
200 rooms expected to be online within the next 3 years
DIVERSIFIED REVENUESOver $550,000 from additional fees beyond base management income
EXCEPTIONAL EFFICIENCYA skilled domestic team supported by cutting-edge software solutions and Virtual Assistants
Rent Roll Summary
BASE MANAGEMENT INCOME
This business has showcased impressive growth since April 2019 with base management income climbing from $621,633 for YTD March 2019-20 to $1,087,107 for YTD March 2023-24.
It's crucial to highlight that this growth stems exclusively from base management income and does not encompass any additional fees.
Currently managing a total of 838 tenancies, including 832 current leases and only 6 vacancies as of March 2024, This business maintains a robust presence in the market.
With 85% of leases are 12-month in length, the business has a solid foundation for continued growth and stability.
Looking ahead, base management income is projected to achieve $1.2 million over the next 12 months from April 2024 onwards, following the fourth consecutive year of growth.
The following table presents data on occupancy and annual management income (AMI) for each property department of the business, with an average AMI of $1,634 annually.
Rental Summary Apr 19 - Mar 24
This business has showcased impressive growth since April 2019 with base management income climbing from $621,633 for YTD March 2019-20 to $1,087,107 for YTD March 2023-24.
It's crucial to highlight that this growth stems exclusively from base management income and does not encompass any additional fees.
Currently managing a total of 838 tenancies, including 832 current leases and only 6 vacancies as of March 2024, This business maintains a robust presence in the market.
With 85% of leases are 12-month in length, the business has a solid foundation for continued growth and stability.
Looking ahead, base management income is projected to achieve $1.2 million over the next 12 months from April 2024 onwards, following the fourth consecutive year of growth.
The following table presents data on occupancy and annual management income (AMI) for each property department of the business, with an average AMI of $1,634 annually.
ADDITIONAL FEES
Setting itself apart from typical real estate agencies, This business boasts a distinctive fee structure, with
$486,360 additional fees charged beyond base management income as of March FY24.
It is anticipated that the revenue generated from additional fees will exceed $550,000 by the end of FY24, constituting approximately 33.48% of the total revenue (excl. other income).
The additional fees are recurring and include:
The additional fees constitute a consistent revenue stream that can be seamlessly carried over by the succeeding owner.
KEY METRICS BY FINANCIAL YEAR
The business has demonstrated impressive financial performance in recent years, with FY24 forecasted to attain a turnover of $1,700,000+, marking a 6.54% rise from FY23. The revenue generated from additional fees consistently surpasses $550,000.
Other income encompasses revenues that are not regularly recurring. The emphasis on long-term management revenues has resulted in a decline in other income streams.
This signifies a growing proportion of revenue that can be carried over by the succeeding owner.
Anticipated net profit for FY24 is expected to reach $580,000, marking an impressive 52.46% increase compared to FY23 driven by an overall cost reduction.
Rent Roll - Rooming
The rooming tenancies offer both semester-long and year-long lease options across purpose-built student accommodation (PBSA), share house, townhouse and boarding house. Rooming accommodation refers to rental properties rented out on an individual room basis. Approximately 85% of the tenants are international and domestic students.
Rent Roll - Residential
The residential properties exclusively provide year-long lease options across unit, house, townhouse, unit and dual living house.
Residential accommodation typically refers to traditional rental properties intended for families, groups, or couples, such as houses, townhouses, or units. These properties are rented out under one lease agreement to families or similar groups. The majority of the tenants are working professionals.
Systems & Processes
At This business, the management systems and processes are meticulously documented and incorporate digitalized handling of all documentation, facilitated by industry-leading software across core operations:
Additionally, This business utilizes:
Strategically located near its two offices in inner city and Southside of Brisbane, This business's properties primarily inhabit University-anchored suburbs of Brisbane. Since its establishment in 2015, This business has grown to manage over $200 million worth of residential real estate, remaining independently owned and debt-free.
With a robust brand identity and a history of excellence, This business is a preferred choice for investors in both rooming accommodation and the burgeoning Build to Rent market. Its investor base spans various development stages, including a promising pipeline of 200 tenancies set to come online in the next three years. Notably, it oversees the final stages of a purpose-built accommodation project, comprising 22 bedrooms, scheduled for launch in June 2024.
Compared to traditional real estate agencies, This business's fee structure stands out, with over $550,000 additional fees charged beyond base management income.
With fully documented management systems and digitalized handling of all documentation through top-tier software, This business ensures operational efficiency. It supplements its domestic team with an international administration company to manage workload and stabilize labour costs amidst wage inflation. Moreover, its emphasis on staff retention promotes client stability and facilitates seamless ownership transitions.
Under the leadership of a seasoned business manager and client liaison officer boasting a collective nine years of experience with the business, This business showcases a track record of consistent business growth over the past three years. Bolstered by robust trading income and a healthy net profit line, the business' financial performance underscores its stability and success.
A COMMANDING PRESENCE
Managing 830+ tenancies
Spanning 80+ locations
99.28% occupied as of Mar-24
85% of leases 12-month in length
A BURGEONING PIPELINE
5 x Development Approval obtained in place
200 rooms expected to be online within the next 3 years
DIVERSIFIED REVENUESOver $550,000 from additional fees beyond base management income
EXCEPTIONAL EFFICIENCYA skilled domestic team supported by cutting-edge software solutions and Virtual Assistants
Rent Roll Summary
BASE MANAGEMENT INCOME
This business has showcased impressive growth since April 2019 with base management income climbing from $621,633 for YTD March 2019-20 to $1,087,107 for YTD March 2023-24.
It's crucial to highlight that this growth stems exclusively from base management income and does not encompass any additional fees.
Currently managing a total of 838 tenancies, including 832 current leases and only 6 vacancies as of March 2024, This business maintains a robust presence in the market.
With 85% of leases are 12-month in length, the business has a solid foundation for continued growth and stability.
Looking ahead, base management income is projected to achieve $1.2 million over the next 12 months from April 2024 onwards, following the fourth consecutive year of growth.
The following table presents data on occupancy and annual management income (AMI) for each property department of the business, with an average AMI of $1,634 annually.
Rental Summary Apr 19 - Mar 24
This business has showcased impressive growth since April 2019 with base management income climbing from $621,633 for YTD March 2019-20 to $1,087,107 for YTD March 2023-24.
It's crucial to highlight that this growth stems exclusively from base management income and does not encompass any additional fees.
Currently managing a total of 838 tenancies, including 832 current leases and only 6 vacancies as of March 2024, This business maintains a robust presence in the market.
With 85% of leases are 12-month in length, the business has a solid foundation for continued growth and stability.
Looking ahead, base management income is projected to achieve $1.2 million over the next 12 months from April 2024 onwards, following the fourth consecutive year of growth.
The following table presents data on occupancy and annual management income (AMI) for each property department of the business, with an average AMI of $1,634 annually.
ADDITIONAL FEES
Setting itself apart from typical real estate agencies, This business boasts a distinctive fee structure, with
$486,360 additional fees charged beyond base management income as of March FY24.
It is anticipated that the revenue generated from additional fees will exceed $550,000 by the end of FY24, constituting approximately 33.48% of the total revenue (excl. other income).
The additional fees are recurring and include:
- Bank Fees: Tenants are levied an annual fee for rental receipting to offset bank fees and receipting costs, payable upfront upon moving in and upon lease renewal.
- Bond Cleaning: A 20% plus GST referral fee is charged to the cleaning company contracted by This business for cleaning services.
- Break Lease Fees: Tenants breaking their lease are charged a fee to cover administration costs associated with securing a new tenant.
- Marketing Income: Property owners are billed for marketing their properties to prospective tenants. This revenue helps cover the costs associated with utilizing property sites for advertising purposes.
- Mattress Protector Revenue: Property owners are invoiced for brand-new mattress protectors provided to each new tenant.
- Property Letting Income: Property owners are charged for new tenants who sign leases and move in. This amount is equivalent to one week's rent plus GST per new lease.
- Springfield Base Fee: refer to page 12.
The additional fees constitute a consistent revenue stream that can be seamlessly carried over by the succeeding owner.
KEY METRICS BY FINANCIAL YEAR
The business has demonstrated impressive financial performance in recent years, with FY24 forecasted to attain a turnover of $1,700,000+, marking a 6.54% rise from FY23. The revenue generated from additional fees consistently surpasses $550,000.
Other income encompasses revenues that are not regularly recurring. The emphasis on long-term management revenues has resulted in a decline in other income streams.
This signifies a growing proportion of revenue that can be carried over by the succeeding owner.
Anticipated net profit for FY24 is expected to reach $580,000, marking an impressive 52.46% increase compared to FY23 driven by an overall cost reduction.
Rent Roll - Rooming
The rooming tenancies offer both semester-long and year-long lease options across purpose-built student accommodation (PBSA), share house, townhouse and boarding house. Rooming accommodation refers to rental properties rented out on an individual room basis. Approximately 85% of the tenants are international and domestic students.
Rent Roll - Residential
The residential properties exclusively provide year-long lease options across unit, house, townhouse, unit and dual living house.
Residential accommodation typically refers to traditional rental properties intended for families, groups, or couples, such as houses, townhouses, or units. These properties are rented out under one lease agreement to families or similar groups. The majority of the tenants are working professionals.
Systems & Processes
At This business, the management systems and processes are meticulously documented and incorporate digitalized handling of all documentation, facilitated by industry-leading software across core operations:
- Property Management: Relies on MRI Property Tree, with trust accounting plugin and seamlessly linked to the bank account for automated transactions.
- Inspections & Online Bookings: Leverages Inspect Real Estate for streamlined inspection scheduling and bookings.
- Agreements: Manages lease agreements digitally, including electronic signing and key documentation via Sign Request.
- Maintenance: Utilizes Bricks+Agent for lodgement and record-keeping, seamlessly integrated with Property Tree for comprehensive maintenance management.
- Entry, Exit & Routine Inspection: Handled through Inspection Manager for thorough and organized reporting.
- Finance & Accounting: Oversees tax returns, BAS, staff wages, payslips, and leave management via Xero.
Additionally, This business utilizes:
- For data storage, email hosting, and digital filing: Google Workspace.
- For digital security through password protection and encryption: LastPass.
- For bulk email campaigns and marketing initiatives: Mailchimp.
- For photo shoots and 3D tours for new properties: Little Hinges, engaged as a contracted marketing and advertising company.
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The information contained on this website has been uploaded by SIRE based on information supplied by the owners of the business for sale.
SIRE has not audited or otherwise confirmed this information and makes no representations, expressed or otherwise, regarding this information, and shall in no way be responsible for the content, accuracy and truthfulness of such information.
By requesting this business profile the recipient acknowledges their responsibility to perform a due diligence review prior to any acquisition of the subject business. Intending purchasers should satisfy themselves as to the truth and accuracy of all information by their own enquiries and should not rely only upon the information provided.
The information provided is to be used and accepted as a guide only. The Buyer acknowledges that it is the Buyer’s sole responsibility to verify and confirm all information contained in this document, and the Buyer furthermore resolves not to hold SIRE Brokers and/or its salespeople or authorised personnel responsible for its accuracy, including any liability or loss suffered by them in relation to the information contained in this
document.
LIABILITY DISCLAIMER
The information contained on this website has been uploaded by SIRE based on information supplied by the owners of the business for sale.
SIRE has not audited or otherwise confirmed this information and makes no representations, expressed or otherwise, regarding this information, and shall in no way be responsible for the content, accuracy and truthfulness of such information.
By requesting this business profile the recipient acknowledges their responsibility to perform a due diligence review prior to any acquisition of the subject business. Intending purchasers should satisfy themselves as to the truth and accuracy of all information by their own enquiries and should not rely only upon the information provided.
The information provided is to be used and accepted as a guide only. The Buyer acknowledges that it is the Buyer’s sole responsibility to verify and confirm all information contained in this document, and the Buyer furthermore resolves not to hold SIRE Brokers and/or its salespeople or authorised personnel responsible for its accuracy, including any liability or loss suffered by them in relation to the information contained in this
document.