Rent Roll Warranties: The Clause That Saved Our Client’s Business

O*NO! Someone’s Stealing Our Clients!

Imagine this: You’ve just bought a rent roll. You’re excited—maybe even a little nervous—but mostly pumped for the growth ahead. Then, out of nowhere, your managements start disappearing. One by one. It’s not a tech glitch, and it’s not the tenants. It’s worse: a former team member from the seller’s agency is quietly poaching your clients. 

That’s exactly what happened to one of our clients recently. But don’t worry—there’s a happy ending, and an important lesson in here for anyone thinking of buying a rent roll. 

When the Retention Period Ends... Trouble Begins 

Our client had done everything right. They bought a rent roll and got through the retention period—this is the time right after the sale when the seller is supposed to help with a smooth transition. All looked good on paper. 

But as soon as that period ended, things started going sideways. Clients started leaving. Not en masse, but just enough to raise eyebrows—and alarm bells. After a little digging, we found out that a former contractor of the seller had gone rogue, contacting clients and trying to win them over to a competing business. 

The catch? Our client didn’t have any direct agreement with this ex-contractor, so they couldn’t just pick up the phone and tell them to stop. Legally, it was a tricky spot. And left unchecked, this kind of behaviour can cost tens of thousands of dollars. 

The Clause That Saved the Day 

Thankfully, we had built some solid protection into the purchase contract—a warranty specifically requiring the seller to have confidentiality and restraint clauses in place with their staff and contractors. 

This warranty was the linchpin. 

As soon as the poaching came to light, we got in touch with the seller and pointed to that clause. Because they’d agreed to ensure their team (including contractors) had these legal obligations, they were on the hook to act. We didn’t have to drag anyone to court—just a firm letter reminding them of the deal they’d signed. 

The seller acted quickly. They issued a formal demand for the contractor to cease contact with any clients they’d had access to. The contractor backed off. Just like that, our client’s rent roll was safe again. 

Why These Warranties Matter More Than You Think 

This kind of clause might seem like legal fluff—until you really need it. Without it, our client would have had no leverage. No contract. No direct way to stop the ex-contractor. And no protection for the asset they’d just spent good money on. 

We’ve seen this happen before. That’s why, when we help clients buy rent rolls, we don’t just rubber-stamp a generic contract. We think ahead, look for risks, and build in protection that can actually be enforced if things go pear-shaped. 

Because sometimes, they do. 

Work With People Who Know Your World 

This is exactly why it pays to work with lawyers who live and breathe rent roll transactions. General business lawyers might miss these kinds of clauses—not out of laziness, just because they haven’t seen this specific problem play out. But we have. 

We’re not here to overcomplicate things. We’re here to protect what you’re building—your time, your money, and your peace of mind. The right legal advice won’t just help you sleep better; it might be the thing that saves your business down the track. 

Key Takeaways

• Warranties in rent roll contracts aren’t just legalese—they’re lifelines. 

• If you don’t have a direct contract with someone, you need your seller to have proper restraints in place. 

• Specialist legal advice can save you time, money, and major headaches. 

• Thinking ahead beats reacting later (especially when your clients are on the line). 

Next Steps

If you're thinking about buying a rent roll—or you already have one—don’t wait until clients start disappearing. Let’s put the right protections in place, so you’re covered before problems arise.
Book your free 10-minute chat and we’ll help you make sure your rent roll investment is locked down.

Boring legal stuff: This article is general information only and cannot be regarded as legal, financial or accounting advice as it does not take into account your personal circumstances. For tailored advice, please contact us. PS - congratulations if you have read this far, you must love legal disclaimers or are a sucker for punishment.