A rent roll is the schedule of every lease at a property, listing each unit or suite, the tenant, the square footage, the lease start and end dates, the rent in place and any escalations, deposits and concessions. It is the property’s income at the lease level, and the source document behind the revenue side of net operating income.
What columns does a rent roll carry?
A rent roll has one row per unit or suite, occupied or vacant. A complete roll carries these columns:
| Column | What it records |
|---|---|
| Unit or suite | The space identifier, with floor or building where relevant |
| Tenant | The legal tenant name, or “vacant” |
| Square feet | The rentable area of the space |
| Lease start and end | Commencement and expiration dates of the current term |
| Monthly or annual rent | Base rent currently in place |
| Escalations | Scheduled rent increases and the dates they take effect |
| Security deposit | Cash or letter of credit held against the lease |
| Concessions | Free rent, abatements and allowances still to be honored |
| Options | Renewal, expansion or termination rights the tenant holds |
Multifamily rent rolls add unit type and market rent. Retail and office rolls add lease type (gross, net or modified), expense recoveries and percentage rent.
How do lenders use the rent roll?
At underwriting, the rent roll establishes the income the loan is sized on. The lender reads occupancy, in-place rent against market, the lease expiration schedule and the concentration of income in any one tenant.
After closing, the rent roll feeds the covenant tests. Revenue in the net operating income calculation starts from the roll, and lender adjustments act on it directly: adjustments for lease inception and termination, exclusion of tenants moving out, inclusion of tenants signed but not yet in occupancy, exclusion of free rent and inclusion of scheduled rent increases. The adjusted revenue flows into DSCR and debt yield, and occupancy covenants are tested on the roll alone.
Illustrative example:
| Unit | Tenant | Square feet | Monthly rent in place | Note |
|---|---|---|---|---|
| 100 | Tenant A | 5,000 | $12,500 | Lease runs three more years |
| 200 | Tenant B | 5,000 | $12,500 | Two months of free rent remaining |
| 300 | Vacant | 5,000 | $0 | Signed lease, moves in next quarter |
| 400 | Tenant D | 5,000 | $10,000 | Notice given, vacates in two months |
| Total | 20,000 | $35,000 | Occupancy 75% |
Under a lender that excludes departing tenants, backs out free rent and includes signed but not yet commenced leases, the tested revenue differs from the $35,000 the roll totals. The loan documents decide which rule applies.
How does a rent roll differ from an operating statement?
The rent roll is a snapshot of contracts: what each lease says the tenant owes as of a date. The operating statement is a record of cash and accruals over a period: what the property collected and spent. Rent on the roll missing from collections points to delinquency; collections above the roll point to income the roll does not carry.
Lenders ask for both because each checks the other: the operating statement supplies trailing revenue and expenses for T-3 and T-12 calculations, and the rent roll shows forward revenue as leases roll, escalate or expire.
What are the common rent roll errors?
Most rent roll errors come from timing. A roll dated before the latest lease amendment shows the old rent. A roll that still carries a vacated tenant overstates occupancy. A roll that omits scheduled escalations understates forward revenue, and one that omits concessions overstates it.
The second source is drift between the roll and the accounting system. When the roll is kept by hand and the ledger separately, the covenant test built on the roll is wrong until someone notices.
How rent rolls show up in LoanBoss
LoanBoss integrates with property accounting systems, which supply the source-of-truth financial data, and applies each lender’s rent roll adjustments for lease inception and termination, rent increases and free rent inside the DSCR and debt yield tests. Rent rolls are also among the lender reports LoanBoss replicates in the borrower’s existing format, so the deliverable stays live without manual updating.
Frequently Asked Questions
What is the difference between a rent roll and a lease abstract?
A lease abstract summarizes one lease in depth. A rent roll lists every lease at a property in one table.
Does a rent roll include vacant units?
Yes. Each vacant unit appears as its own row with no tenant and no rent, so occupancy and vacant square footage can be read from the roll directly.
How often should a rent roll be updated?
Whenever a lease commences, expires, is amended or is terminated. Lenders request a current roll with each reporting package, so the roll is maintained at least that often.
Why does the lender adjust the rent roll in a DSCR test?
Because the roll as delivered may include income that is ending and exclude income that is starting. The loan documents state which tenants and which rent count, and the adjustments apply that definition.
Is a rent roll the same as gross potential rent?
No. Gross potential rent assumes every unit is occupied at full rent. The rent roll shows in-place rent for occupied units and nothing for vacant ones, and the gap between the two is the vacancy and concession loss.
Related Terms
- Net Operating Income
- Debt Service Coverage Ratio
- Debt Yield
- Covenant
- Loan Abstract
- Lender Reporting Automation That Keeps Your Existing Excel Reports
- DSCR and Debt Yield Tests with Lender-Specific Adjustments: The Full Catalogue
Part of the LoanBoss CRE Debt Glossary. For hedging-specific terms, see Pensford’s resources.
Sources
- LoanBoss CRE Debt Glossary