Rent Roll Analysis

Detailed rent roll analysis for 1031 exchange replacement properties, verifying tenant occupancy, lease terms, rental rates, and income stability before acquisition.

Rent roll analysis is essential due diligence for any income-producing replacement property in a 1031 exchange. We conduct detailed rent roll reviews for Washington DC investors acquiring single tenant NNN retail, multifamily, medical office, self-storage, and other commercial properties in all 50 states. Our analysis verifies current occupancy, tenant names and lease commencement dates, lease expiration dates and renewal options, base rent amounts and escalation schedules, security deposits, and any concessions or free rent periods. For single tenant NNN retail properties, we confirm that the tenant is current on rent, verify the lease guarantor and credit strength, and compare rental rates to market comps. For multifamily properties, we analyze unit mix, vacancy trends, and rent-to-market ratios. Our rent roll analysis gives you confidence that the income stream you are acquiring is accurate, sustainable, and aligned with your 1031 exchange investment objectives.

Frequently Asked Questions

Why is rent roll analysis important for 1031 exchange replacement properties?

The rent roll is the foundation of any income property's value. Inaccurate or misleading rent rolls can lead to overpaying for a replacement property, which directly impacts your return on investment and the long-term success of your 1031 exchange. We verify every line item on the rent roll, cross-referencing against actual leases, bank deposit records when available, and market comparables. For Washington DC investors, this ensures the income you expect is the income you receive after closing.

What red flags do you look for in a rent roll?

We look for above-market rents that may not be sustainable at renewal, upcoming lease expirations that create vacancy risk within the hold period, tenants with weak credit or no guarantor, concessions or free rent periods that inflate reported occupancy, discrepancies between the rent roll and actual lease documents, and unusual tenant concentration where a single tenant represents a disproportionate share of income. For single tenant NNN retail properties, we also verify that the reported lease terms match the actual executed lease and any amendments.

How does rent roll analysis differ for single tenant versus multifamily properties?

For single tenant NNN retail properties, rent roll analysis focuses on the single tenant's creditworthiness, remaining lease term, rent escalation schedule, and guaranty strength. For multifamily properties, the analysis examines unit mix, individual unit rents, vacancy trends, lease expiration staggering, tenant turnover rates, and concessions. We tailor our rent roll analysis to the specific property type and help Washington DC investors understand the income profile of any replacement property they are considering.