Rent Roll Calculator
Rent Roll Multiplier Calculator
Got a price on the table? Enter it with the annual income and see the multiple, and where it sits against the market. Free, and nothing to sign up for.
Implied multiple
Market range
What the multiplier tells you
The multiple is the quickest read on how the market sees a book. It is the price divided by the annual management income. A high multiple says buyers view the rent roll as low-risk and cheap to run. A low one says the opposite, and it is usually the first sign that arrears, churn or a scattered spread are dragging on the deal.
The formula
Multiplier = Sale price ÷ Annual management income
Nothing more to it. The only thing to get right is the income figure. Use the management and rent collection fees excluding GST, not gross collections. Feed it the wrong number and the multiple lies to you.
Worked example
Offer on the table: $560,000
Annual management income: $186,400
Multiple = 560,000 ÷ 186,400 = 3.00x
That sits right in the market band. Whether it is a strong number for this particular book depends on its quality.
Common questions
What is a rent roll multiplier?+
The multiplier is the number a book’s annual management income is multiplied by to reach a sale price. If a rent roll earning $180,000 a year sells for $540,000, the multiple is 3.0. It is the standard shorthand for pricing rent rolls in Australia.
How do I work out the multiple on a sale?+
Divide the sale price by the annual management income. Price ÷ income = multiple. A $560,000 sale on $186,400 of annual income is a multiple of roughly 3.0.
What is a good multiplier for a rent roll?+
Most residential rent rolls trade between 2.5 and 3.5 times annual management income. A multiple above that band signals a book buyers see as low-risk and cheap to run. Below it usually points to arrears, churn, discounted fees or a scattered geographic spread.
Is a higher multiple always better?+
For a seller, yes. A higher multiple means more money for the same income. It reflects a book that is easier to keep and cheaper to run, which is exactly what buyers pay a premium for. For a buyer, a high multiple has to be justified by that quality.
What income figure should I use?+
Use the annual management income excluding GST, the management and rent collection fees only. Do not use gross collections or include GST, or the multiple will read low and mislead you.
A multiple is a verdict
It tells you what the market thinks, not why. Your RolliScore rates the book out of 100 and shows you exactly what is earning the multiple, or holding it back. Free.
Score your book, free →