What is a Rent Roll?
A rent roll is a document that lists every rental unit in a property along with key financial details: unit number/address, tenant name, lease start and end dates, monthly rent amount, deposit held, and current payment status. The rent roll is the primary income verification document for multifamily and commercial property transactions.
Lenders require rent rolls when underwriting investment property loans because they verify the income the property actually generates, not just what the seller claims. Discrepancies between the stated rent roll and actual bank deposits are a red flag during due diligence.
How to read a rent roll
A rent roll for a 10-unit apartment building might show: total potential monthly rent ($15,000), actual collected rent ($14,200), vacancy (1 unit empty = $800 lost), and delinquency ($300 owed by one tenant). The economic occupancy is $14,200 / $15,000 = 94.7%. This actual income drives the property's NOI and valuation.
What to look for in a rent roll
- Lease expiration clustering: If many leases expire at the same time, you face simultaneous turnover risk.
- Below-market rents: Tenants paying significantly below market rent represent upside through rent increases, but also turnover risk when rents are raised.
- Above-market rents: May indicate tenants will leave at lease expiration, especially in a softening market.
- Delinquencies: Chronic late payers reduce actual cash flow below the stated rent roll.
- Recent move-ins at inflated rents: Sometimes sellers place new tenants at above-market rents just before listing to inflate the rent roll. Verify by comparing to rent comps.
Rent rolls and deal analysis
For investors evaluating multifamily acquisitions, the rent roll is the starting point for all financial analysis. Multiply the actual collected rent (not the potential rent) by 12 for annual gross income, subtract vacancy and operating expenses for NOI, then apply a cap rate to determine value. For wholesalers marketing multifamily deals, include the current rent roll in your deal package alongside rent comps to demonstrate income verification.