Rent roll is a list of tenants, or “renters” (the people who are renting), and the rent they pay. It also includes other information about them, like their date of birth and address.
Rent roll has been around for a long time, but it’s taken on new importance in recent years as part of the government’s drive to crack down on landlords who don’t provide basic standards of accommodation for their tenants—a campaign known as “Right to Rent.”
What Is a Rent Roll?
The experts at MRI Software state, “A rent roll by definition is a management tool that details properties, displaying legally required lease information and helping landlords track start and end dates of contracts, rental income by the property, and even annual increases. A property’s rent roll can also help to build owners/overseers process and track recurring issues.”
Creating a rent roll is usually done:
- To calculate the amount of rent you will collect.
- To track your income.
- To track expenses and cash flow, which allows you to keep on top of your finances so that you don’t get stuck in a bad situation if there ever is a problem with paying your bills or getting more money out than what’s coming in each month through rent collection (i.e., negative cash flow).
Why Is It Important?
The rent roll is an important document that you should consider keeping on hand. It’s a record of all the tenants in your property, their contracts, and the amount they pay each month. The rent roll can also include information about which units are vacant or occupied by subletters, how many people live in each unit (family size), and other details about each tenant’s lease agreement.
The main reason for keeping this record is to ensure that everyone is paying what they owe on time and getting what they paid for from their lease agreement. For example, if two tenants are sharing an apartment who have signed separate contracts agreeing to pay different amounts per month, but both get billed at a higher rate than either one individually agreed upon with the landlord, then something isn’t right here!
The rent roll helps keep track of all these things so that no one ends up paying more than necessary while also making sure nobody gets overcharged either (or possibly taken advantage of).
Types of Rent Roll
Rent roll is a list of all the tenants of a property. It can be as simple as a list of names, or it can include more details such as the amount of rent paid and when it was paid.
Rent rolls are important because they help landlords keep track of who pays their rent on time, and how much they owe each month or year. If a tenant doesn’t pay his or her rent, it’s easier to cancel their lease if you have all this information on hand.
What Should Be Included in a Rent Roll?
Rent rolls are a list of tenants, their rent amounts and payment dates, lease length, and other information that is vital to maintaining proper record-keeping.
Tenants should be listed in alphabetical order. The following information should be included for each tenant:
- Name
- Address
- Phone number
- Email address (optional)
Other details—such as whether they have pets or smoking habits—can also be recorded if relevant to your property management company’s policies. Landlords may want this information available for reference as well.
Rent roll is a critical component of any real estate business. It provides information on the income and expenses associated with your property, enabling you to make informed decisions and manage your finances effectively.
