3 Clues On The Rent Roll For Every Apartment Investor

3 Clues On The Rent Roll For Every Apartment Investor

Along with the T-12, reviewing the rent roll is a great starting point at underwriting apartment investing opportunities. While information on the rent roll must be verified during due diligence, it makes for a great source of the following information.

Upcoming Vacancies

The rent roll should show the names of residents as well as their lease terms. Run your eyes down the column that shows the end date of the lease term to take notice of how many leases are coming to an end in the next 60-90 days. If your sponsorship team acquires that property, those would be your vacancies to fill. This information is perhaps not a deal breaker, but something to be prepare for.

Bad Debt

While you cannot get the perfect picture of bad debt from the rent roll, there is a column that shows the resident balances. If you notice a large frequency of high balances, this can be an indication of the property management team’s difficulty in collecting rents. This can be due to various reasons and during due diligence this will be something that your sponsor will need to understand.

Loss to Lease

As you review the rent roll, you will see the current rental rates for each resident. From your independent and preliminary research, you can compare those current rents to market rents for similar sized and condition properties in the area to understand and gauge loss to lease and the potential to raise rents closer to market levels in the future.

As passive investors it pays to know and understand the process that your sponsor uses to underwrite apartment investment opportunities. The more informed you are the lower risk of your investment and the better chances of success in your wealth-building journey.

God Bless Ukraine 🇺🇦


Subscribe to Our Channel 👇🏾



💡Invest Your Retirement w/ eQRP

I Rolled My 401k Into eQRP to Passively Invest In Apartments


Passive Investor Startup Guide

To find out more about what it looks like to invest as a passive investor in multifamily real estate, download our free Passive Investor Startup Guide here!




If you invest in stocks or other assets are seek to diversify your portfolio, achieve higher returns or get educated on the power of real estate, subscribe to my articles for automatic updates on new weekly content. Also, sign up for our newsletter for regular updates on our business and to learn how you can passively invest and grow your wealth through real estate.


Rodney Robinson II
Rodney@RodneyRobinsonII.com


What is Absorption In Real Estate?
As you begin to analyze markets, you will encounter the term absorption. …
The Passive Investor’s Guide to C-Class Apartments
Passive Investors should understand the concept of value-add, which is how sponsors …