Rent Roll Analysis Exchange Planning

We read rent rolls on candidate replacement property for New Orleans 1031 investors before those properties get anywhere near an identification list. A rent roll is a starting point, not proof. We check it against lease files and seller documentation, and we flag what doesn't hold up.

What We're Actually Checking For

A rent roll shows unit or suite number, tenant name, lease start and end date, current rent, and deposit on hand. We line that up against the actual lease for each unit where we can get one, because rent rolls get updated by hand and sometimes drift from what the lease says. We're looking for rent shown as collected that's actually in arrears, concessions that got left off the roll, and lease end dates that cluster right after your expected closing date. We also check whether the deposit amounts listed match state deposit requirements, since a missing or understated deposit can become your problem the day you take over as landlord and a tenant moves out expecting a refund that was never properly held.

Short-Term Rental Exposure in New Orleans Buildings

This market has a real complication that a lot of out-of-town buyers miss: some small multifamily and mixed-use buildings, particularly in the French Quarter, Marigny, and parts of Uptown, carry units advertised as short-term rentals rather than standard leases. City short-term rental licensing rules have tightened and changed more than once, and a rent roll built on nightly rental income doesn't translate cleanly into the stabilized lease income a lender wants to see. We separate long-term leased units from anything running as a short-term rental so you're comparing real numbers, not a best-case tourist season.

• Standard annual leases with documented rent
• Month-to-month tenancies
• Units advertised as short-term or nightly rentals
• Units with rent listed but no deposit on file
• Vacant units carried at asking rent, not actual rent

Rollover Risk Around Your Closing Date

We map every lease expiration against your expected closing date and the months right after. A building where four of ten leases expire in the first 90 days after closing is a different risk than one with staggered five-year terms. That's not a reason to walk away automatically, but it belongs in the file before you commit an identification slot, especially if the pro forma you were shown assumes those tenants renew at a higher rate.

Cross-Checking Against the T12

The rent roll and the trailing twelve-month financials should tell the same story. If the rent roll shows steady occupancy but the T12 shows collected rent well below what's listed, that gap needs an explanation from the seller before it goes further. We put that question in writing rather than letting it get smoothed over in a phone call.

Getting This Done Inside Your Window

Rent roll review on a serious candidate takes us a few days once the seller actually produces lease files rather than a spreadsheet summary. We push for those documents as soon as a property looks like a real identification candidate, so the review is done before your 45-day window forces a decision on incomplete information. On buildings with more than a handful of units, we also request bank deposit records for a few recent months so we can spot-check that the rent roll's collected-rent figures match what actually landed in the seller's account.

Reading Rent Rolls on Medical and Net Lease Candidates

A rent roll on a medical office or net lease building looks different from a multifamily one, but it deserves the same scrutiny. We check whether stated rent includes a buildout allowance amortization that inflates the headline number, whether percentage rent on a retail lease is backed by actual sales reports rather than the lease formula alone, and whether a single-tenant medical lease carries a personal guaranty or relies on the practice's own creditworthiness. None of that shows up on a one-page summary, which is exactly why we ask for the underlying lease before a property earns a spot on your identification list.

Common 1031 Exchange Questions

How do you handle a rent roll with short-term rental units mixed in?

We separate those units out and note the licensing status, since short-term rental income doesn't underwrite the same way as a signed annual lease and can affect financing.

What if the seller won't produce individual lease files?

We flag that as a risk in the file. A rent roll without underlying leases to confirm it is a weaker candidate for your identification list, and we tell you that directly.

Does rollover risk disqualify a property automatically?

No, but it changes how the property should be underwritten and priced. We document the rollover schedule so it's part of the decision, not a surprise after closing.

Can rent roll issues affect my lender's loan sizing?

Yes. Lenders often haircut rent that isn't backed by a documented lease, which can change how much debt a property supports.

How fast can you turn around a rent roll review?

Once lease files are in hand, a few business days for a small multifamily building. Larger buildings with more units take longer, and we tell you that timeline up front.

Does a rent roll review look different for a net lease or medical office building?

Yes. We look for buildout allowance amortization inflating headline rent, unsupported percentage rent claims on retail leases, and guaranty structure on single-tenant medical leases, none of which shows up on a simple summary sheet.

Ready to organize the exchange file?