Rent Roll
A rent roll is a detailed document that lists all rental units in a property, showing current tenants, rental rates, lease terms, security deposits, and payment history. It provides a comprehensive snapshot of a property's rental income and occupancy status at a specific point in time.
Example
“The property manager reviewed the rent roll to determine that the building was generating $15,000 monthly from its twelve occupied units.”
Memory Tip
Imagine a scroll that 'rolls' out to reveal all your rental units lined up like credits rolling at the end of a movie.
Why It Matters
Rent rolls are essential for evaluating investment properties as they verify actual rental income versus projected income and help identify potential risks like high vacancy or below-market rents. Lenders also require rent rolls to assess cash flow when financing rental properties.
Common Misconception
Many assume rent rolls only show current rent amounts, but they actually include critical details like lease expiration dates, security deposits, and tenant payment histories.
In Practice
When analyzing a 20-unit apartment building for purchase, an investor reviews the rent roll and discovers that 40% of the leases expire within six months and three units are currently vacant. This information helps them negotiate a lower purchase price and plan for immediate leasing efforts.
Etymology
The term originated from medieval times when property records were kept on rolled parchments, with 'roll' referring to these scrolled documents listing tenant information.
Common Misspellings
Start investing with no commission trades
More in investing
Other investing terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.