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Rent Roll Audit Variance Calculator

Rent roll audits find variance. This calculator sizes.

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Price adjustment needed

$1,661,538

Total annual variance

$108,000

Variance %

6.00%

How the math works

Variance = seller roll − audit + delinquency + concessions. Price adj = variance / cap rate.

$108k variance on $1.8M rent (6%) = $1.66M price adjustment at 6.5% cap. Always audit rent rolls independently; don't rely on seller numbers — seller rolls often 3-8% higher than audit-confirmed.

How to Use

  1. Enter seller's rent roll total.
  2. Enter audited rent total.
  3. Enter delinquency variance.
  4. Enter concession variance.
  5. Read price adjustment needed.

Frequently Asked Questions

Common discrepancies?

Seller understates concessions (boosts effective rent). Overstates occupancy (inflates revenue). Delinquent tenants listed as current. Off-lease occupants missing. Sister-company rent at internal rate vs market. Each distorts valuation.

Audit process?

Visit property, review leases, verify tenant in residence. Bank deposit reconciliation to rent roll. Security deposit bank balance match. 100% lease review on large portfolios; 15-30% sample on larger. Comprehensive audit: 3-10 days depending on portfolio.

Price adjustment?

Variance capitalized at transaction cap rate. $120k rent variance at 6% cap = $2M price adjustment. Cure period: seller fixes discrepancies; if uncured, buyer takes credit at closing. PSA terms control.

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.

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