Buying a real estate property and putting it up for rent is a great source of income these days. The property owners either put their asset on rent for a residential or commercial purpose. Obviously, the target is to get rent at the end of the month. They often create and manage rent role that is nothing but a representation that the property owners use to manage the rent collections from time to time. This also shows the rental income from the real estate property.
Rent Role Analysis: What It Is All About
Managing the rent roll and getting the right information from it is often termed as rent role analysis. As a matter of fact, a perfectly-designed rent role sheet includes all the related information that is needed to manage all the rent accounts. This statement is very effective for the properties that provide shelter to multiple families or commercial institutions. The property owners need to update their sheets immediately after receiving the rents from the tenants, be it commercial or residential.
A property Rent Roll can be used to:
- Analyze potential properties for acquisition and
- Tracking the performance of your property management company
A thorough review of the rent roll is a must when you analyze a multifamily property for acquisition.
Essential Information Included in the Rent Role
- Unit number and unit type
- The area in Square Unit
- Resident/Occupant’s name
- Dates of moving-in and move-out
- The term of Lease along with the date of its expiration
- Rent amount
- Security deposit amount
- Additional income, like parking lot fees, etc
- All other charges that may include late fine etc
- Amount paid and balance due
While making a multifamily rent roll analysis, you must be very sure about considering all the occupants of the said property. The role must have all the information in the distinctive and updated manner. Keeping the records clear and manage everything in black and white is a tough job but it certainly keeps the accounts in the most trusted format.
It is quite clear that responsibility of the property owners is maximum here as he owns the right to get rent from the tenants and maintain the records in the rent roll promptly.
Get the Rent Role Checked and Verified by Professional Accountants
Since the amount of income is taxable, therefore the property owners must keep things transparent. Getting the rent roll checked and verified every year by the professional and certified accountants can keep them free from all liabilities.