If you’re new to investment property, you probably already know there’s a lot of industry jargon. From calculating cap rates to searching the MLS to find FSBO properties, there are plenty of terms to learn. Today, we’ll add another to your vocabulary – rent roll.
Rent Roll Definition
A rent roll is quite simply a list of every property owned and the rent collected on each. Rent rolls can be customized with more or less information based on the owner’s preferences, but it is basically a quick way of seeing how much gross income the property is bringing in (and how much you can expect in the future).
Rent Roll Components
As stated above, a rent roll can be as basic as just a list of properties owned with rent collected on each. However, most rent rolls contain more information. Some common information included on professionally prepared rent rolls includes:
- Property Address
- Property Square Footage
- Number of Bedrooms
- Number of Bathrooms
- Current Lease Terms
- Security Deposit Amount
- Current Monthly or Yearly Rental Fee
- History of Rent Collected by Month or Year (or other terms as defined by the lease)
- History of Late Payments
- Additional Fees (pet, landscaping, trash pickup, etc.)
Most rent rolls are custom tailored to the investment properties and their owner’s preferences and may include much more information.
Why Do I Need a Rent Roll on my Properties?
A rent roll is a must-have for all investment property owners. Not only will it show you exactly where each of your properties stands, but it is also a tool you can use to prove your profitability to others. Lenders will want to see historical evidence of rents collected on your properties if you seek a loan for additional capital, and a rent roll is a perfect way to show them this information.
Customized Rent Rolls at Douglas Realty Property Management
Here at Douglas Realty Property Management, we provide our owners with a customized rent roll detailing the exact outlook for each property we manage. We believe in keeping our owners 100% informed on the financial health of their units, and a rent roll is just one way we do so. To find out how trusting Douglas to manage your properties is the easiest way to become a truly passive income landlord in southwest Florida, contact us at (239) 542-6906.
