Running a rent roll can be a challenging and demanding business, and it’s important to be aware of the hard truths before entering into this field. Here are a few key points to consider:
- High levels of responsibility: As a rent roll owner, you’ll have a significant responsibility to manage the rental properties under your care, including maintaining them, finding tenants, collecting rent, and resolving disputes. This can be time-consuming and stressful, particularly when things go wrong.
- Legal compliance: There are a number of legal requirements associated with running a rent roll, including complying with tenancy laws, managing bond payments, and maintaining accurate records. Failure to comply with these requirements can result in fines, legal action, and damage to your reputation.
- Challenging market conditions: The rental market can be highly competitive, with low vacancy rates and high demand for affordable housing. This can make it difficult to find tenants, and may require you to be flexible and creative in your approach.
- Managing cash flow: Rent roll businesses typically operate on a cash flow basis, which means that you’ll need to manage your finances carefully to ensure that you have enough money coming in to cover your expenses. This can be challenging, particularly during periods of economic uncertainty.
- Staff management: If you plan to hire staff to help manage your rent roll, you’ll need to be prepared to manage them effectively. This may include providing training and support, setting clear expectations, and dealing with performance issues.
Overall, running a rent roll can be a rewarding and profitable business, but it’s important to be aware of the challenges and responsibilities involved before making the decision to enter this field.