Why is a Rent Roll important to a real estate business?

1. Cash Flow

Rent rolls provide recurring income to your business.  

Unlike a sales department, where you need to constantly keep your pipeline going so that you have something to sell and once you sell it, that’s kind of it for that moment, a management agreement with a landlord provides you the ability to earn recurring income with that landlord month after month until they sell the property or there is a termination of management.  

Landlords are less likely to leave an agency and are generally more forgiving, so they stick around. 

In a downturn market, the agencies that generally pull through are the agencies which have strong rent rolls because they have that recurring income, they can still sustain their lifestyle and business overheads.   A good friend of mine says if a real estate agent is still driving a Mercedes in a downturn market, you know they have a solid rent roll. 

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