How to Make a Rent Roll for Your Rental Property

A rent roll is a financial document that tracks the income and occupancy status of a rental property or a portfolio of properties. It provides a clear snapshot of current and projected rental revenue, helping property owners and managers maintain financial oversight and effectively manage tenants. This tool simplifies income tracking, supports financial planning, and assists in evaluating property performance. Owners can use a rent roll to monitor cash flow, assess occupancy rates, and make informed decisions about their investments.

Information Needed for a Rent Roll

Before constructing a rent roll, gather specific and accurate information. The Internal Revenue Service (IRS) requires landlords to keep detailed records supporting reported income and deductions, making thorough data collection essential for tax compliance.

Property details form the initial layer of information. This includes the full address of each property, individual unit numbers if the property contains multiple units, and the specific property type (e.g., residential, commercial). For each unit, comprehensive tenant details are necessary, such as the full legal name of all tenants listed on the lease agreement, their current contact information including phone numbers and email addresses, and the exact move-in date for each tenant.

Lease agreement details provide the contractual framework for the rental income. Essential data points include the lease start and end dates, the lease term (e.g., 12 months, month-to-month), the security deposit amount collected, and any additional deposits or fees, such as pet deposits. Security deposits are typically held in a separate account, like an escrow or trust account, to ensure they are available for return at the tenancy’s end.

Rent details establish the financial obligations of the tenant. This category requires the precise monthly rent amount, the designated rent due date, and the late fee policy as outlined in the lease. Late fee policies should specify the amount or percentage charged and any grace period allowed before the fee is applied. Grace periods commonly range from one to five days. Late fees typically fall between 5% and 10% of the monthly rent, with 5% being a common charge, or they can be a flat fee, often between $25 and $100.

Finally, information on payment status is crucial for ongoing financial tracking. This includes a method to track whether rent has been paid, the date each payment was received, the exact amount paid, and any outstanding balance. All records, including rental agreements, bank statements, and payment receipts, should be maintained.

Structuring Your Rent Roll

Organizing the collected information into a functional rent roll is the next step. Spreadsheet programs like Microsoft Excel or Google Sheets are effective tools. The structure of the rent roll should logically present the data for clear financial oversight.

Each row in the spreadsheet typically represents an individual rental unit or tenant, while columns are dedicated to specific data points. Essential columns to include mirror the information previously gathered. These include a “Unit Number” for easy identification, “Tenant Name” for who is occupying the unit, and “Lease Start Date” and “Lease End Date” to track tenancy duration.

Further columns detail the financial aspects of each lease. A “Monthly Rent Amount” column clearly states the recurring rental income. The “Due Date” column indicates when rent is expected, while “Security Deposit” records the amount held. Columns such as “Last Payment Date,” “Amount Paid,” and “Balance Due” track real-time payment status.

An additional “Notes/Remarks” column allows for recording specific circumstances. When setting up these columns, consistent formatting is important for readability and data analysis. Using clear headings and appropriate data types (e.g., currency for amounts, dates for dates) helps maintain accuracy and allows for easier sorting and filtering of information.

Maintaining and Updating a Rent Roll

A rent roll is a dynamic document that requires consistent and timely updates to remain accurate and useful. Regular review and modification are essential because the financial status and occupancy details of rental properties frequently change. This ongoing management ensures the rent roll reflects the current financial health of the property portfolio.

Payments received must be promptly recorded on the rent roll. This involves marking full payments as received, noting any partial payments, and accurately calculating and tracking outstanding balances. Providing a receipt for every payment, whether digital or paper, helps create a clear, documented trail. If partial payments are accepted, it is important to document the date and amount of payment, the remaining balance, and any applicable late fees.

Lease changes necessitate updates to the rent roll. When a lease is renewed, the new lease end date, any adjustments to the monthly rent amount, or changes in tenant contact information must be reflected. Rent increases, as well as the application of late fees, should be systematically recorded according to the terms outlined in the lease agreement. A clear payment policy, including when late fees apply, should be communicated to tenants.

Managing tenant turnover also involves updating the rent roll effectively. When tenants move out, their entries should be clearly marked as vacated, and security deposit accounting must be finalized. Landlords typically have a specific timeframe, often between 15 to 30 days, to return the security deposit or provide an itemized statement of deductions. For new tenants, all their details, including move-in dates and security deposit information, need to be added to the rent roll.

Establishing a regular schedule for reviewing and updating the rent roll, such as weekly or monthly, helps ensure its continued accuracy. This proactive approach supports efficient financial management, facilitates timely rent collection, and provides reliable data for tax reporting and property performance analysis.