Last Updated: February 2024
Rent rolls are important tools for real estate investors to understand the financial performance of a rental property. As a rental property financial statement, its utility extends beyond just numbers, as it documents tenant names, lease renewal dates, rental rates, and payment history. This information can help with everything from managing existing tenant relations to help guide long-term strategic planning for upcoming vacancies and cash flow management. As we explore further, you’ll see how rent rolls provide a wealth of information that aids in effective decision-making for rental property management and investment.
Rent Roll Definition
A rent roll is a type of rental real estate report that provides a detailed overview of all current leases, typically listing information about each unit such as tenant names, lease terms, rental rates, and payment history. It serves as an essential tool for landlords and property managers to track revenue, assess property value, and manage tenant relationships.
Rent Roll Explained
A rent roll is like a report card for rental properties, showing who’s renting each unit, how much they’re paying, and when their lease ends. It’s an important tool for landlords and property managers because it helps them keep track of a rental property’s income, see who’s paying on time, and plan for when leases are up for renewal.
Top 3 Free Rental Property Rent Roll Templates
RentalRealEstate Free Rent Roll Template
Get started creating a rent roll for your rental property with our free downloadable and customizable template below. The rental property rent roll template opens up as an Adobe PDF and can be edited in Adobe Acrobat or compatible programs.
Stessa Free Rent Roll Template
The Stessa website has 2 free rent roll templates available for download in both Microsoft Excel and Google Sheets formats.
RentSpree Free Rent Roll Template
RentSpree has 2 free downloadable rent roll templates available in both Microsoft Excel and Google Sheets formats.
What Information is on a Rent Roll?
Although rent rolls may differ from property to property, they all generally provide similar information. Below is a list of the most common property information you can typically expect to find on a rent roll:
- Tenant Names: The full names of all tenants occupying the units.
- Unit Identification: Details of each unit such as the unit number or address.
- Lease Start Date: The date each tenant’s lease agreement began.
- Lease End Date: The date each tenant’s lease agreement is set to end.
- Rent Amount: The monthly rent amount each tenant is paying.
- Security Deposit: The amount of security deposit held for each unit.
- Rent Due Date: The date when the rent is due each month.
- Payment History: A record of each tenant’s payment history, including any late payments or defaults.
- Other Fees: Any additional fees that the tenant pays, such as for pets, parking, storage, etc.
- Status of the Lease: Indicates whether the lease is current, month-to-month, or in default.
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How to Use a Rent Roll?
Rental property rent rolls act as vital tools within the realm of real estate management and investment. Providing a snapshot of a property’s occupancy and income status, they offer insights crucial for various stakeholders. Here’s a table highlighting the primary users of rent rolls and how they utilize this essential document:
| Stakeholder | Usage of Rent Rolls |
|---|---|
| Property Owners | Rent rolls help property owners monitor the financial health of their property, tracking income and occupancy. |
| Property Managers | These professionals use rent rolls for operational tasks, such as lease tracking, rent collection, and vacancy anticipation. |
| Real Estate Investors | Investors analyze rent rolls to assess potential investments, studying income patterns and tenant stability. |
| Lenders | Before approving loans or mortgages, lenders review rent rolls to gauge the property’s income-generating potential and risk. |
| Potential Buyers | Those looking to purchase rental properties use rent rolls during due diligence to verify income claims and tenant quality. |
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Rental Property Rent Roll FAQ
Are Commercial Property Rent Rolls Different From Multifamily Residential Rental Property Rent Rolls?
Yes, commercial real estate rent rolls and multifamily residential real estate rent rolls can differ due to the specifics of the lease agreements and tenant relationships. Commercial real estate rent rolls often capture more complex details, such as different types of rents (base rent, percentage rent), common area maintenance charges, lease commencement and expiry dates, renewal options, and even details about the tenant’s business. On the other hand, multifamily residential rent rolls typically involve simpler data including the tenant’s name, unit number, lease start and end dates, monthly rent amount, and security deposit.
How Often Should a Rental Property’s Rent Roll be Reviewed and Updated?
Ideally, a rent roll should be updated monthly or whenever there’s a change in tenancy, rent amounts, or lease terms. Regular reviews ensure accurate tracking of rental income, anticipate upcoming vacancies or renewals, and provide up-to-date information for decision-making or potential property transactions.
What are Discrepancies or Red Flags to Watch for on a Rent Roll?
Common red flags include a high number of vacancies, frequent tenant turnover, inconsistent rent amounts for similar units (without clear reasons), long-outstanding tenant balances, and short-term leases without justification. It’s essential to reconcile rent rolls with actual bank deposits to ensure income accuracy and watch for any discrepancies that might indicate management issues or other concerns.
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About the Author
Ryan Nelson
I’m an investor, real estate developer, and property manager with hands-on experience in all types of real estate from single family homes up to hundreds of thousands of square feet of commercial real estate. RentalRealEstate is my mission to create the ultimate real estate investor platform for expert resources, reviews and tools. Learn more about my story.
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