830+ tenancies under management, 99% occupied with an AAMI of $1,634; $1.7mil turnover anticipated for FY24 incl. $550,000+ additional fees; current owners have withdrawn from daily operation.
This leading decentralized accommodation agency in Brisbane, Queensland caters to both students and working professionals, boasting an extensive portfolio of over 800 tenancies spanning across 80 diverse locations. Impressively, the occupancy rate stands at an enviable 99% as of March 2024.
With a solid foundation of 5 development approvals secured and a promising pipeline, the agency anticipates adding 200 more rooms within the next three years, further solidifying its position in the market.
The growth trajectory speaks volumes, evidenced by an Average Annual Management Income (AAMI) of $1,634 and a remarkable achievement of generating a total turnover of $1.77 million for the 12 months ended March 2024. Notably, this marks the fourth consecutive year of growth for their business.
Setting it apart from average real estate agencies is the fee structure, which has seen the agency charge over $480,000 in additional fees beyond management commission as of March FY24.
The rent roll includes a commercial agreement to manage purpose-built student accommodation buildings, entailing fixed annual base management fees alongside commission structures, further diversifying the revenue streams.
Behind the scenes, the domestic team of 8 dedicated employees, including their adept business manager and owner liaison manager, are bolstered by the support of an international administration company. This strategic arrangement has not only helped them manage workload efficiently but also mitigated labour costs amidst wage inflation. As a result, the current business owners have been able to significantly reduce their direct involvement, facilitating a streamlined operation that makes the business an attractive prospect for potential buyers, regardless of their background in accommodation or property management.
The management systems and processes are meticulously documented and leverage cutting-edge digital solutions, facilitated by industry-leading software, ensuring seamless handling of all documentation and operations across the board.
