What is Rent Roll?
The Short Answer
Rent Roll explained simply
A Rent Roll is a critical document for any income-generating property, especially in real estate. It provides a snapshot of the property's rental income by detailing each tenant, their specific unit, the start and end dates of their lease, the monthly rent they pay, and any other charges or deposits. This document helps property owners, managers, and potential buyers understand the property's financial health and income stability.
Real-World Example
Apartment Building Rent Roll
Imagine an apartment building with 10 units. The Rent Roll would list each unit number, the tenant's name, their lease start and end dates, the monthly rent for that unit, and any security deposits held. For example:
- Unit 1A: John Doe, Lease: Jan 1, 2023 - Dec 31, 2024, Rent: $1,200/month, Deposit: $1,200
- Unit 1B: Jane Smith, Lease: Feb 1, 2023 - Jan 31, 2025, Rent: $1,150/month, Deposit: $1,150
This detailed list allows for easy calculation of total monthly income and helps identify vacancies or upcoming lease renewals.
Why this matters
The Rent Roll is essential for valuing a property. It shows the current income stream and helps predict future income. Buyers use it to assess risk and potential returns. Lenders also review it to determine loan eligibility and terms.
Always keep your Rent Roll updated. It’s one of the first documents a buyer or lender will ask for. An accurate Rent Roll shows you run a tight ship.
Always keep your Rent Roll updated. It’s one of the first documents a buyer or lender will ask for. An accurate Rent Roll shows you run a tight ship.
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