Selling a rent roll in 2023.... What to consider?
Timing works both ways...
As we all know, financial institutions are lending less than 12 months ago and due diligence is taking considerably longer. Unfortunately, this is impacting rent roll sale multiples and leading to deals falling over. So if you're planning on selling, consider moving your sale to the first half of this year to avoid the impact of further economic slowdown on prices that economists are anticipating.
Don't get stuck on 'valuation multiple'
As is the case when selling a home, 'value' is a function of demand: with more potential buyers typically leading to higher value. This is why it's important to recognise the 'valuation multiple' you achieve when selling is not the only variable that matters. Other key contractual terms such as 'retention period', 'retention deposit', or 'geographic restrictions' are also important and may lead to buyers varying their offer considerably.
WHATS NEXT....
With my team at HD&U we're ready to assist you navigate these complex processes and stakeholder challenges, including your staff, buyers, lawyers, accountants, lenders & others.
Call me directly to get started.
James Dalton