Updated · Part of the CRE investment glossary
What a rent roll contains
A rent roll is a snapshot, not a history. It lists every unit, occupied or not, as of a stated date, usually exported from the property management system. After closing, the same report becomes an operating tool: asset managers review it each month for occupancy, renewals and delinquency, and summarize it in investor updates. The columns depend on the property type.
- Multifamily: unit number, unit type (beds and baths), square feet, resident, move-in date, lease start and end, market rent, lease rent, concessions, deposit, balance owed and status (occupied, vacant, on notice, down or model).
- Commercial (office, retail, industrial): tenant, suite, rentable square feet, lease commencement and expiration, base rent per square foot, scheduled increases, reimbursement structure (net, gross or modified gross), renewal or termination options and security deposit.
How underwriters read a rent roll
An underwriter reads the rent roll for what it implies about income, risk and upside:
- Occupancy: physical occupancy counts units; economic occupancy compares rent actually charged to full market rent.
- Loss to lease: the gap between market rent and lease rent on occupied units — upside if leases can roll to market.
- Lease expirations: how much rent expires in each of the next few years. For commercial property, a single large tenant leaving can change the whole deal.
- Delinquency and concessions: balances owed and free rent that make billed rent overstate cash.
- Tie-out: annualized rent roll income compared with rental income on the T-12, and both compared with bank deposits.
Worked example: a six-unit rent roll
A small rent roll as of one date, then the numbers an underwriter would pull from it.
| Unit | Type | Market rent | Lease rent | Status | Lease end |
|---|---|---|---|---|---|
| 101 | 1 bed | $1,300 | $1,250 | Occupied | Mar 2027 |
| 102 | 1 bed | $1,300 | $1,300 | Occupied | Dec 2026 |
| 103 | 2 bed | $1,650 | $1,550 | Occupied | Jun 2027 |
| 104 | 2 bed | $1,650 | — | Vacant | — |
| 105 | 2 bed | $1,650 | $1,600 | Occupied | Nov 2026 |
| 106 | 1 bed | $1,300 | $1,225 | Occupied | Jan 2027 |
The numbers behind the example
Physical occupancy is 83%, but economic occupancy is lower because the vacant unit is one of the larger ones and every occupied unit except 102 is below market. Two leases end within the next three months, so a buyer would ask whether they are renewing and at what rent.
Economic occupancy has more than one definition; this example uses lease rent on occupied units divided by market rent on all units. Others use rent collected. Use the definition your lender or investment committee uses.
| Measure | Calculation | Result |
|---|---|---|
| Physical occupancy | 5 ÷ 6 units | 83.3% |
| Market rent, all units | 3 × $1,300 + 3 × $1,650 | $8,850 a month |
| Lease rent, occupied units | $1,250 + $1,300 + $1,550 + $1,600 + $1,225 | $6,925 a month |
| Loss to lease | $7,200 market on occupied − $6,925 | $275 a month (3.8%) |
| Economic occupancy | $6,925 ÷ $8,850 | 78.2% |
| Annualized lease rent | $6,925 × 12 | $83,100 |
What to watch for
A rent roll is prepared by the seller or its property manager. Test it before you rely on it:
- Leases signed just before a sale at rents the market will not repeat, or with free rent hidden in a separate concession line.
- Units listed as occupied with large balances owed.
- A rent roll date far from the T-12 period, so the two cannot be reconciled.
- For commercial property, rents that do not match the leases. Buyers often request tenant estoppel certificates to confirm terms.
General information, not legal, tax or investment advice. Your operating agreement, offering documents, counsel and CPA govern your deal.