What a rent roll includes
A complete rent roll usually lists, for every unit:
- Unit number, type (studio, one-bedroom, two-bedroom) and square footage.
- Tenant name, or an identifier if privacy rules apply.
- Lease start and end dates, or month-to-month status.
- Current contract rent and the market rent for the unit.
- Security deposit held.
- Current balance owed, including any past-due amounts.
- Concessions, subsidies such as housing vouchers, and other charges like parking or pet rent.
- Vacant units, down units and units used by staff or as offices.
How buyers use it
Buyers use the rent roll to calculate current income, occupancy and the gap between contract rents and market rents, often called loss-to-lease. They compare it with the T-12 to see whether the rent on paper is the rent being collected, and look at lease expirations to understand how quickly rents can be adjusted.
During due diligence, buyers audit the rent roll against signed leases, deposit records and bank statements, and often ask tenants to sign estoppel certificates confirming their rent, deposit and lease terms. Discrepancies discovered late are a common cause of price reductions.
Red flags
These patterns tell a buyer that the income needs a closer look:
- Many tenants with large past-due balances, or balances that grow month to month.
- Recent leases signed with large concessions or at rents well above the rest of the building.
- A high share of month-to-month tenants without explanation.
- Rents on the roll that do not match leases or deposits.
- Units listed as occupied that appear vacant on inspection.
Preparing a rent roll for a sale
Export the rent roll from your property management software if you use it, dated close to when you send it, and keep the format consistent with the T-12. If you manage with a spreadsheet, include every column above, reconcile it against your leases and flag any special arrangements. Accurate data presented up front builds credibility and helps a buyer give you a firm offer.
