The
rent roll
 is an essential document to know the progress of your real estate investments. It consists of a report that details the income obtained from renting a property over a period of time. Therefore, knowing how to interpret it is key to calculating the
cap rate
 of your real estate assets and making the right decisions that increase your profitability.

How to read the
rent roll
 of your real estate investments

Keeping a close eye on your portfolio helps you reduce investment risks. To do this, you must learn how to read the financial reports of your rental properties and know what data they include.

Main Sections

The
rent roll
 has four important sections:

  1. Property Information. It includes data such as location, size of the property, name of the owners and management company, type of property (single-family or multi-family), zoning (residential or mixed use) and classification of the area (urban, suburban or rural).
  2. Housing unit information. It details the structural condition and condition of the home. In general, the data included is the number and letter of the unit, the number of square meters, the bedrooms, and the bathrooms. It also includes additional spaces such as terraces, balconies, wine cellars and parking spaces, as well as common services and amenities.
  3. Tenant data. It includes the name, the monthly rent fee; additional items (for use of the warehouse, parking, pets, etc.); start, end, and monthly rent payment dates; details of overdue and prepaid rents, and withheld deposits.
  4. Income detail. Present the financial information related to the property. Thus, it includes the total number of months charged and the annual expenses allocated to the tenant, such as expenses, maintenance of common areas, disinfection and repairs.

Other Important Facts

The
rent roll
 also includes information on the expenses associated with the property that must be taken into account when analysing it:

  • Painting, landscaping, carpet cleaning, elevator inspection, and structural and common area repairs.
  • Administrative expenses. Information about the property managers who currently perform the administration service.
  • Information on paying property, cadastral, property and other taxes in Florida.
  • Latest renovations. Detail of the most recent renovations that have been implemented in the real estate project.


Rent roll
: tips to make the most of it

Rent Roll

Now you know that having this registry is key to managing your property optimally. But how can you take advantage of it? There are three ways:

  • Drill down into the detail of expenses to find ways to optimize them.
  • Study the behavior of your tenants regarding the payment of rent to consider or not the renewal of the contract.
  • If you have vacant properties and want to raise your rental fee, try home
    staging
    .

In conclusion, thanks to
the rent roll
 you can know the true performance of your rental properties. This way, you’ll know if it’s time to sell, increase the price, or face renovations that increase the value of the property. And if you are still looking to optimize your real estate investment, get advice from the professionals at PFS Realty and discover excellent opportunities to invest in homes for sale in Miami.