Maximizing Your Rent Roll Purchase: 3 Key Strategies for Success

Hey team, Terri here again, as we kick into quarter one of this financial year, I've been thinking about all the property managers out there who've recently expanded their portfolios through rent roll purchases. If you're one of them, congratulations! But let's talk about how to make the most of your investment, especially during that crucial retention period.

Now, I know what you're thinking: "Terri, I've done my due diligence, the deal's done, and I'm just trying to keep my head above water with all these new properties!" Trust me, I get it. But here's the thing: that retention period is your golden opportunity to set yourself up for long-term success.

Let me share a sobering statistic with you. A few years back, I heard Ben White from Ailo present some eye-opening data: within just a few years of purchase, agencies were losing up to 50% of their newly acquired rent rolls. At first, I was sceptical. But recently, I saw it firsthand with an agency I was working with. They bought a rent roll of 232 properties and in just two years, only 43% remained under their management.

Now, we could blame any number of things like a hot sales market, or changing investor priorities. But the fact is, this trend has been consistent for years. It's a risk every agency owner needs to be aware of when using rent roll purchases as a growth strategy.

So, how do we mitigate this risk? I've got three key strategies for you to focus on during the retention period:

1. Connect with owners twice during the retention period. Yes, I know it sounds like a lot, but it's worth it. I'll explain how to make this manageable in a moment.
2. Inspect every property during the retention period. This isn't just about checking the property's condition; it's about connecting with both owners and renters quickly and effectively.
3. Allocate more resources to support your team than you initially planned. Without this, the first two strategies won't happen, and they're crucial for your success.

Let's break these down a bit more:

For those owner connections, here's a little trick: your first touchpoint can be a warm, personalised email inviting them to book a time to chat with their property manager. Include a booking link to make it easy. This approach helps you identify your most anxious clients (they'll book immediately) and gives your team some breathing room to prepare.

When you do have that chat (your second connection), come prepared with specific questions. Your goal is to understand not just their communication preferences, but their future plans for the property. Are they planning to move back in? Considering selling? This information is gold for managing your portfolio effectively.

As for property inspections, prioritise these early. Yes, you're checking the property's condition, but more importantly, you're showing both owners and renters that they're a priority during this transition.

Remember, nobody likes feeling like they've been "bought." Owners, renters, and even property managers you've retained from the old agency may be feeling unsettled. That's why allocating extra resources to support your team during this time is so crucial. Think of it as a mass onboarding on steroids – you need both a solid plan and the resources to execute it.

By focusing on these strategies, you're not just ticking boxes during the retention period. You're laying the groundwork for long-term relationships and maximising the value of your investment.

If you're feeling overwhelmed by all of this, don't worry. At pmXcite, we specialize in helping agencies nail their client communications. From our unique owner newsletter to a treasure trove of templates, we've got the tools to help you save time and build great relationships with your clients.

Remember, in your client's eyes, how you communicate is the only thing setting you apart from the agency down the road. So let's make sure you're making the best first impression possible with your newly acquired rent roll!

Signing off till next time!

Terri Handy