When it comes to selling a rent roll in Brisbane, the most common question I hear is:
“What multiple will I get?”
You’ve probably heard the figures tossed around — 2.8x, 3x, even 3.2x per $1 of annual management income (AAMI). But what do those numbers actually mean? And more importantly, what makes one rent roll command a 3.2x while another only gets 2.8x?
Let’s break it down.
What Is a Rent Roll Multiple?
A rent roll multiple is a valuation method used to estimate what your rent roll is worth. It’s calculated like this:
Rent Roll Value = AAMI × Multiple
So, if your annual management income is $100,000 and you sell at 3x, the value is $300,000.
Simple, right? But here’s where it gets nuanced.
What Affects Your Multiple?
Just like not all properties are created equal, not all rent rolls are valued equally. Here’s what Brisbane buyers look at before they agree to a multiple:
1. Geographic Spread
A tightly grouped rent roll (e.g., 50 properties in Coorparoo) is far more desirable than one scattered across North Lakes, Wynnum, and Indooroopilly. Why? Efficiency. A tighter footprint often means lower running costs and better property manager performance.
➡️ Tighter territory = higher multiple.
2. Quality of the Managements
Are your management agreements up-to-date? Are your landlords engaged and happy? Are arrears low? Buyers look under the hood — they don’t just want income, they want quality and retention.
➡️ Clean files, good landlord relationships = higher multiple.
3. Rent Levels and Fees
Two rent rolls may both have 100 properties, but one brings in $2,400 AAMI per property, and the other $1,800. Higher average income per property (and well-structured fees) means better profitability and often a better price.
➡️ High AAMI per property = higher multiple.
4. Staffing and Handover
A business with a competent property manager who’s staying on post-sale is more attractive. It reduces transition risk, which buyers hate.
➡️ Low staff turnover and clean handovers = higher multiple.
5. Contract Terms and Retention Guarantees
If you’re willing to offer strong retention terms (e.g., 90-day clawback), you’ll often fetch a better multiple. It gives buyers more confidence.
➡️ Flexible terms = better deal.
Brisbane-Specific Trends
In the Brisbane market as of 2025, here’s a rough guide based on current activity:
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2.6x – 2.8x: Regional or scattered rent rolls, poor documentation, high arrears.
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2.9x – 3.0x: Standard metro portfolios with average retention and spread.
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3.1x – 3.2x: Premium, tightly grouped portfolios with high AAMI and strong systems in place.
These ranges are market-driven and can shift — especially with changes in interest rates, buyer demand, or legislation.
So What Multiple Will You Get?
That depends on your portfolio. If you’re serious about selling, it’s worth getting a professional rent roll appraisal to understand your value in today’s market — not just what you’d like it to be worth.
Final Thought
A rent roll isn’t just about income — it’s about the stability and quality of that income. Multiples reflect the risk and effort a buyer takes on. The better the systems, relationships, and location… the better your multiple.
