What is a Rent Roll Valuation Conclave and When is it Used?

Rent roll valuations are often required due to a separation, whether between business or personal partners. They can also be requested when the roll is being sold to distribute the assets of an estate. 

When two or more parties disagree over the value of a rent roll and each engage their own valuation expert, the court or the parties' solicitors will often direct those experts to hold what’s referred to as a ‘conclave’ before the matter proceeds through official channels. 

In legal terms, a conclave is a court-ordered, private meeting between opposing expert witnesses, conducted without lawyers or clients present, to narrow the issues before the court hears the matter. (It’s also the meeting held in Vatican City where Catholic Cardinals determine who the next Pope will be, in case you are wondering where you have heard the word before). 

This process is particularly relevant to rent roll valuations, as rent roll values are nuanced and can depend on judgment calls rather than black-and-white dollar value. It’s easy for experienced valuers working from the same underlying data to reach different conclusions.

The scope of a rent roll conclave

When a matter involving the value of a rent roll goes to court, expert witnesses including valuers are frequently involved. 

One of these valuers might be reviewing five criteria to confirm how much the role is worth while the other is considering ten factors, but of those fifteen combined criteria, only a handful might have been put to both experts in comparable terms.

The conclave focuses on this common ground and asks the valuers to identify the specific areas where they disagree. This is an important distinction for individuals involved in a dispute to understand, since it means the joint conclave statement will rarely be a complete reconciliation of both valuer’s reports. 

What happens during a court-ordered conclave between valuers?

During a conclave, the expert witnesses (in this case, rent roll valuers) meet directly, without instructing solicitors or clients in the room, and work through the criteria they have been focusing on. This may include:

• Multiplier range: Reconciling different multiplier figures based on comparable market transactions.

• Maintainable revenue: Agreeing on gross management fees after stripping out non-recurring income or one-off leasing fees.

• Risk profile: Assessing portfolio churn, average weekly rent per property and tenant retention stability.

Where the valuers’ conclusions align, they make note of their agreement. Where they differ, they need to set out the areas of disagreement and the professional reasoning behind each position as concisely as possible.

The outcome is a joint statement filed with the court so it can focus its attention on genuine points of contention rather than the full breadth of each valuers’ report.

The goal of the conclave is not for the two experts to resolve the dispute about the value of the rent roll or how it should be separated between parties. It’s for them to clarify what they do agree on so the process is made easier for the court. The final output will generally be a concise list of agreed items, contested items and reasons for remaining disagreements.

Will your rent roll valuation dispute require a conclave?

Conclaves are used when each party has appointed its own expert valuer. This includes complex family law property settlements where a rent roll or agency forms part of an asset pool, as well as commercial disputes such as breach of franchise agreements, shareholder disputes or partnership dissolutions involving a property management business.

A conclave differs from matters where a single expert is appointed to provide an independent opinion, which is what usually happens during a divorce. You can read more about the role of a rent roll valuer in a divorce hearing here.

Your rent roll matter may require a conclave if the valuers have varying conclusions about what influences the value of the rent roll and what the figures are. 

Get an independent, defensible valuation for your rent roll

Whether you require a single independent expert valuation or are engaged in a dispute requiring a party-appointed expert witness, BDH Valuers provides rent roll and property management portfolio valuations proven to withstand scrutiny in court. Our experts can serve as expert witnesses and participate in conclaves where necessary.

FAQ

• What should I expect my solicitor to do during a conclave?

  Not much in the room itself. Conclaves are conducted without solicitors or clients present. Your solicitor's role is upfront (briefing your expert, agreeing the criteria) and afterward (reviewing the joint statement and advising on next steps).

• How much does a rent roll valuation dispute cost when it involves a conclave?

  Costs scale with complexity. Engaging your own expert witness, preparing a defensible report, and having that expert participate in a conclave all add time and fees beyond a standard single-expert valuation. Ask your valuer or solicitor for an estimate upfront based on your matter's specifics.

• What if I disagree with my own valuer's position after the conclave?

  You can raise concerns with your solicitor before the joint statement is finalised. Once filed, though, the statement reflects the experts' professional positions, not a negotiated outcome you can unilaterally revise.