Over the past three years there has been strong increases in the median rental levels for housing in all States and Territories of Australia. Vacancy rates have also declined. Given that revenue for residential rent roll businesses is largely derived from a commission percentage of rental paid by tenants, there has typically been strong increases in revenue to the property management departments of real estate agencies. This has not gone unnoticed by the rent roll sales market, which has seen high activity levels.
Revenue Derived From Residential Rent Rolls:
Revenue for rent rolls is typically from two main sources:
- Commission on rental paid – this is mainly between 7% to 10% of rent paid excluding GST;
- Ancillary fees: Additional fees for property condition reports, inspections, letting fees, etcetera.
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