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Underwritten vs Actual Rent Calculator

Pro forma rent often diverges from actual collections. This calculator sizes the variance.

$
$

Annualized actual

$2,160,000

Variance vs UW

-$240,000

Variance %

-10.00%

How the math works

Annualized actual = collected × 12 ÷ months elapsed. Variance against underwriting flags early-cycle trends.

Report variance against pro forma monthly. Small variances (±2%) are noise; persistent single-digit negatives are leading indicators of stabilization miss. Flag to lender and equity early.

How to Use

  1. Enter underwritten annual rent.
  2. Enter actual collected rent.
  3. Enter months elapsed.
  4. Read annualized variance.

Frequently Asked Questions

Sources of variance?

Delayed lease-up, below-projection market rents, concessions burned through, credit losses, unplanned vacancy, expense creep eroding NOI. Each is worth tracking separately.

Red flag threshold?

Over 5% below pro forma through first year = underwriting miss. Over 10% = material gap requiring re-forecast, reduced distributions, or capital call discussion.

Lender reporting?

Most loans require monthly or quarterly operating statements. Proactive variance reporting with explanation and remediation plan keeps lender confidence; surprise reports draw covenant scrutiny.

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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