What a valuer needs to value your rent roll, report by report, and why each item changes the answer.
Most of it runs straight from your trust accounting system. You need nothing to enquire, and a missing item rarely stops the work.
To value a rent roll, a valuer needs a schedule of every management at one date from your trust accounting system, 12 to 24 months of monthly fee income split by fee type, a gains and losses report with reasons, properties listed for sale or under notice, landlord concentration, signed management agreements, recent trust account audit reports, staff and servicing costs, and, for a sale or exit, the contract terms. You need nothing to enquire. Missing items are common, and each report states what it relied on.
What do we settle before asking for any data?
Five answers shape the request, and we confirm them in writing with the fixed fee before work starts.
- ·The purpose: sale, purchase, partner exit, related-party transfer, finance, tax or dispute. For a tax purpose, the ATO says market value has its ordinary meaning unless a provision defines it differently.
- ·What is valued: the rent roll on its own, or the whole agency or its shares.
- ·The valuation date. The ATO lists reliance on information after the valuation date that could not reasonably be foreseen among issues it commonly sees, so the date decides which reports you run.
- ·The state or states, because agreement and trust account rules differ.
- ·The figure that sets the fee band: the roll's annual management income, or the agency's total annual turnover.
What should the rent roll schedule contain?
One row per management, run at the valuation date. Use landlord identifiers and suburbs rather than names and street addresses, and leave tenant names out.
| Field | Why it matters |
|---|---|
| Property identifier and suburb | Counts managements and shows geographic spread without naming anyone |
| Landlord identifier | Groups managements by landlord to measure concentration |
| Property type | Houses, units, commercial and short-stay managements carry different fees and workload |
| Weekly rent | A percentage fee moves with the rent collected |
| Management fee rate and other fees charged | Sets income per management and shows how much rates vary |
| Management start date | Shows tenure, and which managements were recently won or bought |
| Lease expiry date | Flags vacancy and re-letting risk |
| Arrears and vacancy at the report date | Uncollected rent earns no percentage fee and adds work |
| Agreement status and date | Shows whether a current signed agreement supports the fee |
Which trust accounting reports do we need?
Export reports in their native format where you can: re-typed figures are harder to reconcile, and unreconciled income is treated as less certain.
| Report | Period | What it shows |
|---|---|---|
| Monthly management fee income | 12 to 24 months | Whether recurring income is stable, growing or wearing away |
| Ancillary fee income by type | Same months | Letting, renewal, inspection and other event fees, measured apart from management fees |
| Gains and losses of managements, with reasons | Same months | Attrition by count and by income, and why managements leave |
| Arrears and vacancy at each month end | Last 12 months | Collection quality and vacancy trends |
| Fee schedule as loaded in the system | At the valuation date | The fees the system charges, to compare with the agreements |
| Trust account reconciliation | Month end nearest the valuation date | Whether the ledgers balance without unexplained differences |
Which managements are at risk?
These managements are on the roll today but may not earn income for long.
- ·Properties listed for sale, under offer or under contract, with any agency
- ·Landlords who have given notice or plan to sell, move in or change agent
- ·Landlords with several managements, with the number and fee income each holds
- ·Managements held by the principal, staff, family or related entities, and on what fee
- ·Managements bought from another agency in the last two years, with any retention terms still running
- ·Managements under dispute or complaint
Which agreements and compliance records do we need?
Agreements are the basis for every fee, and each state sets its own rules. NSW Fair Trading states that an agent is not entitled to its fees or expenses unless a written agency agreement is in place and a copy signed by the licensee is served on the client within 48 hours after the client signs. In Queensland, an agent cannot provide a property agent service until the client appoints the agent in writing, and the Form 6 notes say a client can end a continuing appointment with 30 days' written notice, or less if both parties agree. In Victoria, landlords are told that in most cases they can end an agent's management by notifying the agent in writing, after checking their authority.
Trust money never adds to value, but the audit record matters to any buyer. In NSW the audit period ends on 30 June and lodgement is due by 30 September. In Victoria the audit is due within 3 months after 30 June, and the report must be lodged within 10 business days of receiving it. In Queensland the report is due within 4 months after the end of the audit period.
- ·Your standard management agreement, and the version in current use
- ·A sample of signed agreements chosen from the schedule, or the full set for a small roll
- ·Any agreement with discounted fees, fee caps or unusual termination terms
- ·Trust account audit reports for the last two or three audit periods, with evidence of lodgement
- ·Any correspondence with the state regulator about the trust account or the licence
What about people, costs and the deal itself?
Servicing cost separates the income a roll earns from what a buyer keeps; deal terms decide who carries the risk of losses.
- ·A staff list with roles, start dates and remuneration, and managements per property manager
- ·Which landlords deal mainly with one person
- ·Profit and loss statements for two or three years, and year-to-date accounts
- ·The entity that owns the rent roll, and who holds its shares or units
- ·For a sale: the heads of agreement or contract, including retention, clawback and settlement adjustments
- ·For an exit: the shareholders', unitholders' or partnership agreement, and any valuation clause
Which items matter most for each purpose?
A guide, not a fixed rule. We confirm your list with the scope and fee.
| Purpose | Items we look at first | Why |
|---|---|---|
| Sale or purchase of a rent roll | Schedule, gains and losses, at-risk managements, agreements, contract terms | The income a buyer can expect to keep, and who carries losses |
| Sale of the whole agency or its shares | All of the above, plus accounts, balance sheet, staff and lease | Whole-business earnings and the bridge to share value |
| Partner or shareholder exit | The agreement between owners, accounts, schedule | The agreement may set the basis of value and the interest being valued |
| Related-party transfer or restructure | Schedule, income history, entity structure | Market value for tax, which an agreed price may not reflect |
| Finance | Schedule, income history, agreements, trust audits | The lender's own requirements apply, so ask what it needs first |
| Tax, including 30 June 2027 | Schedule and income reports run at the tax date | A value at a fixed date, supported by records from that date |
| Dispute | Everything relevant, plus the orders or clause | The report must answer the question as framed |
What if something is missing?
Missing items are common: an old agreement may not be on file, or a past arrears report may no longer run. Tell us what is missing. We can often work from other records, and each report states how any gap was treated. Gaps can affect timing. Delivery time starts once payment and all required information have been received.
From 1 July 2027 the 50% CGT discount for individuals, trusts and partnerships is replaced by cost base indexation and a 30% minimum tax, for gains that accrue after that date. If you hold a rent roll personally or through a trust, a valuation at 30 June 2027 may be useful, so run and keep the schedule, income and arrears reports at that date. Your tax adviser can confirm whether it applies to you.
- ·Market valuation for tax purposes, Australian Taxation Office
- ·Agency agreements: information for property professionals, NSW Government (NSW Fair Trading)
- ·Appointment to act as a property agent, Queensland Government (Office of Fair Trading)
- ·Using a property manager or real estate agent, Consumer Affairs Victoria
- ·Real estate trust accounts and audit requirements, NSW Government (NSW Fair Trading)
- ·Auditing estate agents trust accounts, Consumer Affairs Victoria
- ·Trust account audits for the property industry, Queensland Government (Office of Fair Trading)
- ·Tax reform: Boosting home ownership: Reforming negative gearing and capital gains tax, Australian Taxation Office
- ·Form 6: Residential agent appointment or reappointment (version 05/24), Queensland Government
Common questions.
Do I need to send documents to get a fixed fee?+
No. The enquiry form is enough to confirm the scope and fixed fee in writing. Documents come after you engage us.
Which trust accounting systems do you work with?+
Any system that can export a property list, fee income, gains and losses and arrears reports. Report names differ between systems; what matters is the fields in the schedule above.
Is this the same as a buyer's due diligence list?+
It overlaps, but the job differs. This list is what a valuer needs to measure income and risk. A buyer's due diligence also tests the facts behind it, such as whether each agreement was signed and served correctly, which is work for the buyer and their lawyer.
How much of this does a valuation of the rent roll alone need?+
Less than a whole agency. A rent roll on its own centres on the schedule, the income and movement history, at-risk managements, agreements and servicing cost. Balance sheets, the sales business and the office lease matter mainly when the whole agency or its shares are valued.
What does a rent roll valuation cost?+
It is banded on the roll's annual management income, excluding GST: $1,495 + GST under $2 million, delivered in 2 business days; $2,495 + GST from $2 million to $3 million; $3,495 + GST from $3 million to $10 million, both in 3 business days; and quoted in writing above $10 million. Delivery time starts once payment and all required information have been received.
Talk to a valuer
Tell us what you need valued.
A short call confirms the package, the fixed fee and the delivery date for your agency, rent roll or book, before you commit to anything.
0433 475 518Mon to Fri, 9am to 5:30pm Melbourne time
Send the form and we reply with the package and fixed fee. No documents needed to start.
Small Business Valuation
$1,495 + GST
For an agency, rent roll or book with annual revenue of what is valued under $2 million. A written report, delivered in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the value we reach.
Larger agency or book? Tell us in the form and we recommend the right package. All fees