Portfolio Rent Roll Risk Calculator

Rent rolls carry hidden risk. This calculator risk-weights the income stream.

Monthly rent roll

IG tenant share

Short-term share

Top-5 concentration

Risk-weighted rent

$306,460

Effective weight %

79.60%

Annual risk-weighted

$3,677,520

How the math works

Effective weight blends IG/non-IG tenant quality, short-term lease haircut, and concentration haircut above 40%.

Risk-weighted NOI is not a lender requirement — it's a negotiation tool. When a buyer or lender quotes a 6.25% cap and your rent roll is 70% short-term with 65% top-5 concentration, walk in with a weighted view instead of letting them anchor the conversation on raw NOI.

How to Use

Enter total monthly rent roll.
Enter investment-grade tenant share %.
Enter short-term lease (<12 mo) share %.
Enter top-5 tenant concentration %.
Read risk-weighted effective rent.

Frequently Asked Questions

Risk weighting?

Investment-grade tenants: 100% weight. Local credit: 80-90%. Sub-standard: 50-70%. Month-to-month or short-term: 40-60%. Top-5 concentration above 40%: haircut 10-20%.

Rent roll grades?

A-grade (investment + long-term): prices at tightest cap rate in market. B-grade (mixed credit, mid-term): market cap rate. C-grade (local credit, short-term): +100-200 bps spread. Risk-weighted rent maps to cap rate premium in underwriting.

Actionable items?

Run this before financing negotiations or sale. Tight lenders and buyers haircut rent roll; sellers who come prepared with risk-weighted view negotiate better terms than those surprised by it at diligence.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.