PHILADELPHIA - A rent roll is a key component of a property's financial statement. It tells a landlord or investor whether the property is generating consistent revenue and if there are any red flags that need to be investigated further. In addition, it helps to alert potential investors to long-standing problems. Despite its importance, it is important to analyze the data in the context of the whole property.
Depending on the needs of the landlord, a rent roll will include various types of information. For example, the rent roll will contain the unit number, which should match the lease agreement. The rent roll will also contain information on the number of beds in the unit, which is important when comparing the rent price to other similar properties in the area.
A rent roll is also important when determining the quality of tenants. A high turnover rate of tenants can cause the property's cash flow to be significantly reduced, as the landlord will have to pay for marketing and leasing fees. A high turnover rate also means lower renewal rates, which can reduce cash flow.
A rent roll helps investors keep track of the rent for a property, and helps landlords and property managers identify any potential defaulters. It also allows them to check for vacant units, which is vital when dealing with rental properties.
