Rent Roll
A document listing all rental units, their tenants, lease terms, and current rents.
Definition
A rent roll is a detailed summary of a property's rental income, listing each unit, the tenant name, lease start and end dates, monthly rent amount, security deposit held, and any outstanding balances. For multifamily or commercial properties, the rent roll is one of the first documents an investor reviews during due diligence. It provides a snapshot of actual income, occupancy, lease expirations, and tenant stability. Comparing the rent roll to market rents reveals opportunities to increase income. Lenders and appraisers use the rent roll to assess income stability and verify the property's cash flow potential.
How This Relates to DSCR Loans
DSCR lenders may review the rent roll to verify current income, though the appraiser's market rent estimate is typically what's used for qualification.
Related Terms
NOI (Net Operating Income)
A property's total income minus operating expenses, before debt service and taxes.
Market Rent
The rental rate a property would command in the open market based on comparable rental properties.
Vacancy Rate
The percentage of time a rental property is unoccupied and not generating income.
Due Diligence
The investigation and analysis an investor conducts before purchasing a property to verify all material facts.
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