Fully describe the business's activities?
The rental book currently generates a gross income of about R260 000 per month with just below 300 properties. Note: Only the rental book is for sale and not the trading name
How long has the business been established?
Rental division was started in 2009 by the owner.
How does the business operate on a daily basis?
This well oiled machine has well trained and long standing staff who sources properties and clients, deals with the general admin, repairs and the like and the owner oversees the monthly pay outs.
How are the clients attracted to the business?
Website, Property24, Private Property, Gumtree, Facebook, Sign boards
What competition exists?
There is a lot of competition in this industry but due to a tight system decision making is quick, functions are departmentalized and everybody knows exactly what to do which results in excellent service to both tenant and landlord.
What are the seasonal trends?
Winter months tend to be a bit slower.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Currently about 8% of the income has been affected.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Each tenant has been contacted and an Acknowledgement of Debt has been signed. Very stringent screening processes are followed when placing tenants and this has been the saving grace of this business.
Is the business VAT Registered?
Yes the business is registered for VAT
What VAT documentation is on file?
All relevant documents are available from the accountant.
What Balance Sheet and Income Statements are available?
Financial Statements for the month ending February 2020 is on file.
What percentage of the business is cash/credit?
No cash. One months deposit is paid in advanced
How could the profitability of the business be improved?
Adding more properties to the rental book.
Is Seller finance available and for what amount?
What is the total staff complement?
4 staff members other than the owner.
Give a breakdown of staff/ functions/ length of service?
Rental Agent/General Office administrator - 2 years Rental Agent/General Office administrator - 4 years Financial Administrator - 7 years Maintenance Officer - 2 years
Do any receive special perks or incentives?
2 x Rental agents receives incentives
Are they on contract?
Do any have management potential?
Yes, the financial administrator.
How involved is the Owner in running the business?
Daily involvement from the owner who manages payments to landlords, salaries, manage agents
Any special arrangements for the staff related to the Covid-19 pandemic?
Staff worked from home during the lockdown period.
When does the current lease end?
The business can easily be operated from home or slot in with a similar establishment.
What is the square meters of the business?
About 35-40 squares should be sufficient
Do you require a licence?
Need to be a Principal with the Estate Agency Affairs Board and hold a valid Fidelity Fund Certificate
What are the main assets of the business?
3 x Computers Cabinets
How have they been valued ?
Replacement value of about R40 000
Are they presently insured?
Excellent system in place where accounting and maintenance work closely together Specialist personnel Diverse book Well established name in the industry
Capitalize by selling some units Growing rental book
Strict qualification of tenants needs to be adhered to
What is the reason for the sale?
Owner wants to emmigrate
Why is this a good business?
Excellent processes Large book Well trained staff
What is the price plus stock and the profit?
R3 600 000 for the rental book, staff and processes
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