Rent Roll
A rent roll is a unit-by-unit schedule of a property's leases showing unit type, square footage, current rent, market rent, lease start and expiration dates, and occupancy status.
If the T12 is the income statement, the rent roll is the balance sheet of the revenue. It is where loss to lease, lease expiration exposure, unit mix, and concession patterns become visible at the unit level.
The most valuable thing a rent roll reveals is the expiration schedule. A property with half its leases expiring in a single quarter carries real re-leasing risk, and a value-add plan that assumes rents can be marked to market quickly is only credible if the roll actually turns on that timeline.
Rules of thumb
- Reconcile the rent roll to the T12. If the annualized rent roll does not tie roughly to trailing collections, ask why before going further.
- Look for down units, employee units, and model units. They are occupied on paper and generate no revenue.
Related terms
- Trailing Twelve (T12)
A trailing twelve is an operating statement showing a property's actual income and expenses for the most recent twelve months, and it is the primary evidence base for underwriting a multifamily acquisition.
- Loss to Lease
Loss to lease is the difference between a property's market rent and the actual in-place rent on its current leases, representing income the property is contractually unable to collect until those leases roll.
- Gross Potential Rent (GPR)
Gross potential rent is the total annual rent a property would collect if every unit were occupied at full market rent for the entire year, with no vacancy, concessions, or delinquency.
- Mark to Market
Marking to market is the process of raising in-place rents to prevailing market levels as leases expire, converting loss to lease into collected income over the natural turnover cycle.