Question 1

What is rent roll finance?

Accepted Answer

Rent roll finance is a specialised lending product that allows real estate agencies to borrow against the recurring management income of their rent roll. Lenders assess the stability of management fees rather than relying solely on property or personal assets, providing capital for acquisitions, growth, or restructuring without disrupting cash flow.

Question 2

How much can I borrow against my rent roll?

Accepted Answer

Most lenders will fund between 2.5x and 4x annual management income, depending on portfolio quality, fee structure, retention history, and agency profitability. A well-structured rent roll with low landlord concentration and stable income typically attracts higher multiples and stronger lender appetite.

Question 3

How long does commercial loan approval take?

Accepted Answer

Approval timeframes are not guaranteed and vary by lender and application complexity. Straightforward commercial facilities are often approved in around 2–4 weeks; more complex transactions may take 4–8 weeks or longer. Actual turnaround depends on how quickly we can process and submit your application and on individual lender service levels.

Question 4

How is a commercial loan different from a home loan?

Accepted Answer

Commercial loans are assessed primarily on business cash flow, asset quality, and deal structure rather than personal income alone. Terms, covenants, and repayment profiles are negotiated individually, and pricing often depends on how the facility is structured rather than a published rate card.

Question 5

When do I need an independent rent roll valuation?

Accepted Answer

An independent valuation is recommended before any acquisition, sale, or refinancing of a rent roll. Most lenders require a current valuation as part of the finance application. For buyers, an independent assessment protects you in negotiations by ensuring you aren't relying on the vendor's figures. Pendium Advisory is a separate, independent valuation firm specialising in rent rolls and real estate businesses.

Question 6

What documents do I need for a commercial loan application?

Accepted Answer

Typically you'll need two years of financial statements and tax returns, a current assets and liabilities statement, business activity statements, details of the proposed transaction, and property or tenancy information where relevant. For rent roll transactions, a rent roll summary and management agreement details are also required.

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