A Glossary of CRE & PropTech Terms
Let’s take it back to the basics. If you’re a founder new to the real estate world, understanding a few key concepts is essential for building products that resonate with operators and tenants alike. One of those foundational pieces of knowledge? The rent roll. In this post, we’ll break down what a rent roll is, why it matters, and how it’s used in the day-to-day management of real estate assets.
At its core, a rent roll is a document (or spreadsheet) that serves as a snapshot of a property’s rental performance. It lists each rentable unit—whether that’s an apartment, office suite, retail space, or other asset—along with the tenants occupying them. Beyond that, it captures critical details like lease terms, tenant information, the rent each unit generates, and overall rental income for the property. For property owners, this document provides a clear view of occupancy, lease expirations, and income trends. For investors, it offers insights into square footage, occupancy rates, and potential rent growth, making it an invaluable tool for evaluating a property’s performance and potential.
Why Is It Important to CRE?
While its importance may seem obvious (duh, it shows you a building’s rent), it can also be useful to help forecast any changes or planning that a building needs to make. Property owners and managers can see which leases are ending soon, helping them proactively search for renewals, or new tenants when the lease ends. While most rent rolls don’t explicitly say whether or not a tenant has already paid their rent that month, it helps owners have a broader understanding of occupancy and how much the property could be valued for under the current tenancy.
A rent roll also serves as a due diligence tool during the sale or acquisition of a property. For potential buyers, it provides a critical snapshot of the property’s current income and stability, allowing them to assess the reliability of the revenue stream and identify potential risks, such as tenants with short-term leases or high turnover rates.