Are you doing a rent rolls and lease audit before you buy a property?
There are 7 things Cardone Capital looks for in rent roll in real estate:
- Gross Potential Income — what’s the maximum amount you can achieve?
- Effective Rents — what’s the gross potential minus vacancies?
- Market Rents — what are your neighbors renting things for?
- Occupancy — how many people are actually living there?
- Lease Term — how long tenants are there for?
- Other Income/Utilities/Concessions/Etc. — what are the tenants paying for?
- Unit Type (# of 1bd/2bd/3bd/etc.) — how big are the units?
These are just some of the things you must be asking when looking into a new property! Rent roll analysis is an important stream under the study of real estate.
When did the tenant agree to the lease?
When does it terminate?
What are they paying?
Who lives there?
What do they do?
Did they make a deposit?
How are they paying each month?
Remember, buying a property requires a lot of due diligence. Don’t rush into something.
At Cardone Capital, we take our time before investing in a property, and we only pull the trigger when we know everything about the property and know it’s a good deal.