Understanding a Business Land Lease Roll
When real estate investors are considering a potential hire purchase or a bank is writing a potential loan, one of the first documents they ask for becomes the property’s “rental log” or “rental log report”.
The document is described in detail and its usefulness for the CRE due diligence process is highlighted. Let’s start with a simple definition: what is a lease list? A rental list is an important document that lists all of the tenants in the property. Investment is an important part of the due diligence process and is usually carried out by the current owner or property manager.
However, they all contain the same general information:
Tenant Name: The name of the current tenant occupying a specific space on the property. If the space is empty when the rental offer is created, the tenant’s name could be “empty.
You can read also – 5 reasons to buy office space for rent in Noida
Unit Number: The number of the suite or accommodation unit occupied by the tenant.
One Size: The number of square feet (or square meters) the tenant lives in. For example, a tenant can occupy an area of 1,000 square meters. This number is especially important as rent is often billed and rental payments are calculated as a percentage of the net profit square meters – Based on the tenant’s unit size, this is a calculated value that is the percentage of the total area of square meters covered by the tenant. For example, if a tenant occupies 1,000 square feet per square foot, they occupy 10% of the net income in square feet.
Rental Price: The rent paid by the tenant. There are often two columns for this information. The first is usually expressed as the value per square meter per year and the second is the total monthly gross rent, which is calculated by multiplying the total rented SF by the PSF gross rent.
You can read also – How an office space in Noida on rent can be a good option for your business start-up?
Annual Rent: calculated value that represents the total annual rent of the area. By multi-tapping the monthly rent at 12.
There is no question how important the rental list is, but its use varies depending on the perspective of the person looking at it. For an investor, analysis is a critical part of the pre-purchase due diligence process. It’s an essential part of the lending process.
