Rent Roll Ultimate Guide + Free Template

Welcome to our ultimate guide on rent rolls for real estate. Whether you're a seasoned real estate investor, a property manager just starting out, or simply an intrigued reader, our guide will unpack everything you need to know about rent rolls - what they are, why they're indispensable, and how to use them effectively. Plus, we offer a free, easy-to-use template designed to help you streamline your property management tasks. So gear up for a deep dive into the world of rent rolls, as we unlock the secrets to making this tool a real estate powerhouse in your portfolio.

I decided to do a deep dive into rent rolls because for many of our clients that are seeking financing for a real estate property, the lender is going to ask for the property’s current rent roll in addition to a property pro forma.

So in this article I plan to tackle the following:

1. What is a Rent Roll?
2. What should be included in a Rent Roll?
3. What does a Rent Roll Report Look Like?
4. How to Make a Rent Roll?
5. What is a Certified Rent Roll?
6. How is a Rent Roll Useful to a Property Manager?
7. How is a Rent Roll Used by a Lender?
8. Rent Roll Free Template

With that as our guide, let’s dive in!

What is a Rent Roll?

A rent roll is an important document in real estate investing and property management that provides a snapshot of the current income generated by a property or a group of properties. It's essentially a detailed record of all the rental units under the owner or manager's control, showing the status and income of each.

Rent rolls are pivotal for landlords, property managers, and potential investors, as they provide a clear overview of the property's financial health and performance. They are often used when purchasing, selling, or financing properties to provide a verified income statement for the property in question. A well-maintained and up-to-date rent roll can be a valuable tool in maximizing rental income, improving tenant management, and assessing investment opportunities.

What should be included in a Rent Roll?

A comprehensive rent roll should include the following key elements:

1. Tenant Information: This includes the tenant's full name and contact information. If it's a commercial property, the business name should be included.
2. Unit Details: List each unit separately, identifying it by a specific number or letter. If it's a building with multiple units, you should also include the unit's size and type (e.g., one-bedroom, studio, etc.)
3. Lease Term: The lease start and end dates should be clearly outlined for each tenant. This helps track lease renewals and vacancies.
4. Monthly Rent: This is the amount the tenant pays each month. It's important for calculating the total potential income from the property.
5. Security Deposit: Include the amount of money taken as a security deposit at the beginning of the lease.
6. Rent Due Date: It's helpful to include when the rent is due each month, especially if there are different due dates for different tenants.
7. Payment History: This will show if the tenant pays their rent on time or if they have any outstanding balances.
8. Other Fees and Charges: This might include charges for parking, pets, utilities, or any other additional costs that may apply to the tenant.
9. Vacancies: It's important to include information about vacancies, including how long a unit has been vacant and any prospective tenants.
10. Lease Expirations: Make note of upcoming lease expiration dates to help plan for potential vacancies.

What does a Rent Roll Report Look Like?

A rent roll report is usually a table or spreadsheet that organizes all relevant data in an easily digestible manner. While the specifics can vary, a typical rent roll report might look something like this:

The report should also include a summary section at the end to highlight key totals and averages, such as total monthly income, total security deposits held, total outstanding balances, average rent, and vacancy rate.

I hope this has been helpful for you! If you have any questions or need help developing a most sophisticated rent roll, please feel free to reach out!