Rent roll finance. Built around your agency.
Specialist rent roll lending for Australian real estate principals. Acquisition, refinance and succession finance structured around your portfolio and business cash flow.
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Specialist rent roll lending for Australian real estate principals. Acquisition, refinance and succession finance structured around your portfolio and business cash flow.
Rent roll finance is business lending that uses a real estate agency’s property management portfolio and recurring management income in the credit and security assessment. It can support acquisitions, refinancing and changes in ownership.
We assess recurring management income, portfolio quality, debt commitments and the purchase terms together. We then structure the facilities, prepare the lender approach and coordinate requirements through to settlement.
Rent roll acquisition calculator
GST and stamp duty on a rent roll
The value sits in how the portfolio, purchase terms and business cash flow are brought together for credit and settlement.
Reviewed by James Alexander, Director: Nearly two decades in banking and finance, specialising in complex transactions. Reviewed .
Scale in one step rather than one management at a time, funded in part by the equity already in your business.
The portfolio is not changing hands. The ownership of the business behind it is.
“The team at Pendium were able to deliver a tailored finance solution for our business. The expertise and knowledge on rent roll lending allowed for a smooth transaction that exceeded our expectations.”
“I have known James Alexander for many years in a few different capacities. My dealings with him have always been professional, efficient and timely. I would not hesitate to recommend James and the Pendium Finance team.”
Transaction structures are representative only. They describe the work Pendium is equipped to do, not case studies, lender policy or a promise of approval, pricing or timing. Every transaction turns on its own facts, the contract and the lender.
Yes, with lenders that accept a rent roll as business security. Because property management income is recurring, the portfolio can carry debt in its own right. The amount depends on the portfolio assessment, business cash flow, existing facilities and lender policy, and director guarantees are almost always required.
Lenders size the facility in two steps. The rent roll is valued as a multiple of annual recurring management income, typically 2.5x to 4.0x, and the lender then advances a share of that value, typically 60% to 70%. Together that puts the asset-based ceiling at roughly 1.5x to 2.8x annual management income, before serviceability is tested. These are indicative ranges, not offers.
As a multiple of annual recurring management income, typically 2.5x to 4.0x in the current Australian market. One-off income such as letting and lease renewal fees is generally left out. The multiple moves with competitive churn, landlord concentration, geographic spread, fee levels and the length of management agreements.
Terms of up to 10 years are available from some lenders, and interest-only periods can be available. The term, repayment profile and any interest-only period depend on the lender, the portfolio and how comfortably the business services the facility. These are indicative, not offers.
The funding is structured around the purchase price, your contribution, existing debt and settlement terms. Where the contract includes retention or staged payments, the proposed drawdowns need to reflect those obligations.
Typically 4 to 8 weeks from a complete application to settlement for an acquisition. The timetable depends on the lender’s valuation and credit process and on the contract’s settlement terms, so it is worth starting before the contract is signed rather than after.
The income behind the headline figure: the fee structure and ancillary income, arrears and vacancy, competitive churn, geographic spread, the mix of houses to units, property age and how concentrated the ownership is. Then the business around it: cash flow, existing debt and whether it can service the new facility.
Not always. Some lenders will lend against the rent roll and business assets without a mortgage over your home. Director guarantees are still almost always required, so personal assets can be exposed. Where the portfolio cannot support the full facility on its own, additional property security may be requested.
Rent roll lending can support a refinance or ownership change, subject to assessment. We review the current debt, ownership structure, repayment capacity and security before approaching suitable lenders.
A current rent roll report, business financial statements, existing debt details and an outline of the transaction are useful starting points. For an acquisition, include the proposed contract and payment terms. We will confirm the documents required for your circumstances.
Discuss your requirementsExplore equity, cash flow and acquisition scenarios.
Open calculatorsSouthern Highlands home and investment loans
Phone: 1300 876 410 | Email: loansupport@pendiumfinance.com.au
Perth: 204/96 Mill Point Road, South Perth WA 6151
Sydney: Bay 5 North, Locomotive Street, Eveleigh NSW 2015
Pendium Finance Pty Ltd (ACN 662 388 838) — Credit Representative 543457, authorised under LMG Broker Services Pty Ltd (Australian Credit Licence 517192).