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Rent Roll Finance

Boost your income by purchasing a rent roll portfolio and earning a management fee.

With a rent roll portfolio, you can expand and add a reliable fixed income stream to your real estate or property management business. You can apply for a secured business loan to finance the purchase of a rent roll. Residential or commercial property can be used as security, but some lenders may allow you to secure the loan with the rent roll itself.

What is rent roll finance and how does it work?

A rent roll is the snapshot of rents due for a particular rental property. A rent roll portfolio is the overall ledger of all rental properties in a business's portfolio. You can buy or sell this portfolio to other businesses as an investment, thereby acquiring or selling the rights to manage a portfolio of property.

Buying a rent roll portfolio allows you to earn a management fee from the landlords, which you can add as a steady income stream to your business. Acquiring it can help a fledgling agency to grow, or an established business to expand. A rent roll could cover up to 50% or more of your fixed business costs.

Unless you have a substantial amount of capital to work with, you will need a loan to cover the purchase price. You can finance the purchase of a rent roll with a secured business loan. This type of loan will require an asset to secure the loan. Depending on the lender, you may be able to use the rent roll itself as security. Alternatively, you could offer residential or commercial property as security.

How much you can borrow will depend on the lender and your business's financial position. Some lenders have a maximum loan-to-value ratio (LVR) of 40%, while others will let you borrow up to 60% or even 65% of the purchase price. You may need to put forward a deposit to cover the rest. There are fixed and variable rate finance options available and you could receive a term of up to 10 years. Rent roll finance works the same as a standard business loan. You'll have to make regular repayments inclusive of interest up until the end of the loan term.

In recent years, rent roll finance has become subject to tighter lending criteria. Make sure you prepare a comprehensive business loan application that meets the lender's criteria. You will also need to demonstrate that you have several years of property management experience.

Lumi Unsecured Business Loan

Lumi Unsecured Business Loan

  • Fast approval
  • No early repayment fees
  • Short loan terms
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100% confidential application

Lumi Unsecured Business Loan

Borrow up to $300,000 with an unsecured business loan from Lumi.

  • Interest rate type: Variable
  • Interest rate: from 15% p.a. to 26% p.a.
  • Comparison rate: from 15.64% p.a. to 52.14% p.a.
  • Establishment fee: 2.5%
  • Minimum loan amount: $5,000
  • Maximum loan amount: $300,000
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Compare business loans you could apply for today
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Lumi Unsecured Business Loan
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
Valiant Finance Business Loan Broker
3 months to 7 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 80 lenders. Loans between $5,000 and $20 million are available. Request a call – your loan can be funded in 1 business day.
ebroker Business Loan
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
ScotPac Boost Business Loan
3 months to 3 years
$0 application fee
A business loan for any industry. Borrow between $10,000 and $500,000, with approved loans funded within 24 hours. Minimum monthly turnover of $10,000 and 1 year of trading history required.
Max Funding Unsecured Business Loan
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Prospa Business Loan
3 months to 3 years
3.5% origination fee
Small business loans are available from $5,000 - $500,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $5,000 is necessary.

How are rent rolls valued?

Before your application is approved, the lender will have the rent roll assessed to determine its market value. This is commonly done using a formula known as a Rent Roll Multiplier (RRM). It works by applying a multiplier to the annual management income associated with the rent roll. The annual management income is the total amount earned from management fees and rent collection charges (excluding GST). Once this is calculated, a multiplier is applied to calculate a fair purchase price. This multiplier is affected by a number of factors, including:

  • The average annual rent and management income for each property
  • The number of properties on the roll
  • Whether those properties are owned by single or multiple owners (landlord to property ratio)
  • Where the properties are located and their geographical spread
  • Whether the properties on the roll are residential or commercial
  • How desirable the properties are and their overall condition
  • Arrears and vacancy rates
  • Current court actions
  • The length of time for which the rent roll has operated
  • Current interest rates
  • Legislation compliance

Based on the above factors, a multiplier of between 2 and 3 is usually applied. In major cities like Sydney, the multiplier could be as high as 3.5 or even 4.

How can I compare business loans to finance a rent roll?

  • Interest rate. How much you pay in interest will affect your monthly repayments and the total cost of the loan. Look for a loan that offers a low rate of interest. Comparing interest rates is a good way to check if the loan is competitive. You will have to choose between a fixed or variable rate of interest. With a fixed rate, you get the security of predictable repayments. With a variable rate, you can benefit from a lower rate if interest rates fall.
  • Fees and comparison rates. As important as interest rates are, you should keep an eye on fees and the comparison rate. This includes application fees and account-keeping fees. These will vary between lenders, so make sure you account for them. They will add to the cost of your loan. Some loans may offer low rates and high fees. This may work out to be more expensive, so keeping an eye out for fees is a good idea. The comparison takes into account interest and the fees you will be charged. It will give you an indication of the true cost of the loan.
  • Loan term. Your loan term is how long you have to repay the loan. The length of the term will affect how high your repayments are. That is, with a short term, you can expect higher monthly repayments. But with longer terms, you pay more in interest and fees. You can use a business loan calculator to get an idea of what your repayments will be like with different loan terms.
  • Loan amount. Lenders have set minimum and maximum lending amounts. Make sure the amount you need is on offer from the lender.
  • Loan features. If there are specific loan features you would like to have, make sure to check which loans offer these features. This can include early repayments, early exit without penalty and redraw facilities.
  • Turnaround time. Check how long the lender takes to approve the loan and transfer the funds to you. If you need your funds within a certain time, make sure the lender is able to accommodate this. Secured loans will generally take longer to process than unsecured loans.
  • Eligibility. This may seem obvious, but you should only apply to a lender if you meet all their criteria. This includes your finances and credit history.
  • Specialisation. It may be worthwhile considering a lender that specialises in financing for the real estate industry. They may be able to offer value beyond the loan itself, including additional information, tools and advice to help you grow your business.

What are the pros and cons of secured business loans?


  • Lower interest rates. Securing the loan comes with the advantage of lower and more competitive interest rates. This makes secured loans cheaper.
  • Higher borrowing amounts. A secured loan has higher borrowing amounts than unsecured loans. You may be able to take out a large loan, depending on the value of your asset.
  • Longer loan terms. Secured loans generally have longer loan terms, anywhere from 10 to 30 years.
  • Imperfect credit scores may be considered. Given that the loan is secured, some lenders may be more amenable to borrowers with less than perfect credit histories.


  • Risky for the borrower. This loan comes with the risk of losing your asset if you default.
  • Longer processing times. There's more documentation involved so it takes longer to process secured loans.

What should I avoid with rent roll finance?

There are a number of things you should avoid when applying for rent roll finance. These include:

  • Getting into debt you cannot afford. Check the cost of the loan and make sure you can afford it. You should be able to comfortably include your repayments in your budget. You should avoid borrowing more than you need.
  • Multiple applications. Every loan application shows up on your credit report. Several applications within a short period can have a negative impact on your credit score. This can make it harder for you to get a loan in the future. Select a single loan that you're eligible for and that suits your needs and apply with that lender.
  • Long-term repercussions and legal issues. Once you sign a loan agreement, you are bound to its conditions. You will have to pay the loan and all the fees. If you don't meet your repayments, the lender can report the debt to a credit reporting body like Equifax and use the services of a debt collector. For secured loans, your asset could be repossessed if you default.
  • Underestimating your capacity. When you buy a rent roll, you'll have a new set of landlords on your books. You need to account for meeting your new clients and their needs, while also providing the same standard of care and attention to your current clients.

Is my business eligible for rent roll finance?

When assessing your application, the lender will look into a number of factors, including your ability to repay the loan. The eligibility criteria will vary from lender to lender. In general, a lender may consider your:

  • Experience. Lenders may consider you for finance if you can demonstrate you have adequate property management experience. A minimum of 3 years may be required.
  • Licensing. You'll have to hold a current real estate licence.
  • Financials. Both your business and personal finances may be assessed.
  • The rent roll itself. They will consider the valuation, as well stability of the income.
  • Loan security. This could be the rent roll or a residential or commercial property.

How can I improve my chances of getting rent roll finance?

If you're looking to maximise your chances of getting approval for rent roll finance, there are a number of things you can do. These include:

  • Prepare a solid business plan. A good business plan can go a long way. Include cash flow and profit forecasting. This will help the lender assess your ability to achieve your future business goals.
  • Provide business financials. Ask your accountant to prepare detailed profit and loss reports and balance sheets for the past 2–3 years.
  • Maintain a good cash flow. Lenders want to know you'll be able to repay the loan.
  • Reduce your liabilities. Refinance if you have to. Pay down your current debts and reduce your liabilities. This may help increase your borrowing power.
  • Maintain equity in your business. The more equity you have in your existing rent roll, the better your chances of approval.

How can I apply for rent roll finance?

🤔 Work out how much you need to borrow and what you can afford.
🔎 Start comparing lenders and loan products. Don't forget to compare interest rates, fees and eligibility criteria. You can use Finder's comparison table to help you.
✅ Select a lender. Click "Go to site" to be directed to the lender's page, or "More info" if you want to read about the lender.
🖨️ Organise and prepare the required documentation. This will make the application process easier.
📱 Apply. Most lenders have their applications online.

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