Ann: Earnings guidance and key organisational changes, page-31

i have been involved in buy and sell of rent rolls and yes part of the Valuation is based on a Multiple to the Management Commission but not including the lease fees derived from renting a unit in which case you may get the first weeks rent as a commission. Now what you really want to know if the figure MEA says is PM commission includes both lease fees and annual management fee to collect rent.
To value the business you have to extract the lease fees from the calculation before you use your multiple of say x 3.5. In addition a figure is calculated on annual sales e.g. the value of a good database is also valued e.g. the average over 3 years of sales x 20%, so if sales commission is $5m per year average over 3 years, then an amount of $1m is considered fair for the sales part of the business. In addition a calculation needs to be made the loans business and income from Franchise business.