What Should a Family Office Check in a Property's Rent Roll and Lease Agreements?

Check that the rent roll reflects enforceable lease obligations and rent tenants actually pay. Listed rent can differ from collected income. A fully occupied snapshot may also hide concessions, arrears, near-term expirations, or rights that let a tenant leave early.

Match Each Entry to Signed Lease Records

Request the rent roll, executed leases, amendments, renewal notices, tenant ledgers, deposit records, and occupancy reports. Match every material space or unit to the correct lease. Confirm the tenant name, area, base rent, lease dates, options, and occupancy. Reconcile billed rent to collections and property bank or management records. Explain credits and arrears, along with any disputes or gaps between scheduled and collected rent.

Ask: "Which rent roll entries lack an executed lease?" "What concessions or credits reduce cash received?" "Which tenants are behind on charges or disputing them?" For vacant units, distinguish asking rent from signed rent and collected rent. For rent increases, check the lease mechanism and notice requirements with counsel when their legal effect matters.

Read the Economic Terms Behind the Rent

Review free rent, tenant improvement allowances, renewal rights, termination rights, expansion or contraction options, rent escalations, and conditions that delay rent commencement. For commercial leases, identify who pays taxes and insurance, as well as utilities or building upkeep. A lease may shift some costs to the tenant. Confirm the obligation and check for caps or exceptions. For residential leases, check concessions, renewal terms, and deposit requirements. Ask counsel about applicable obligations.

Compare in-place rents with independent evidence for similar space, accounting for concessions and lease terms. Separate recurring rent from one-time fees and reimbursements. Review any other ancillary income on its own. Check whether lease language and collection history support reimbursements. Any projected rent increase should have a specific contractual or market basis.

Map Expirations and Tenant Options

Prepare an expiration schedule and identify periods when several leases end near one another. Review notice deadlines and options that can change the timing or economics of a renewal. Concentrated expirations can create vacancy exposure even when current occupancy is high. For significant tenants, examine lease obligations and termination or co-tenancy conditions that could affect other space.

Ask: "What is the cash flow effect if this tenant does not renew?" "How long could the space remain vacant?" "What costs are required to re-lease it?" Base answers on lease terms and property evidence, without assuming renewal. Keep tenant-specific questions with their supporting records.

Test Rent Cash Flow Under Pressure

Recalculate income for slower lease-up, longer vacancy between tenants, lower renewal rents, and concessions that continue longer than planned. Compare the resulting net operating income with debt service and available reserves. Identify the occupancy level where income no longer covers debt service. Include taxes and insurance, plus repair costs, in the analysis. Account separately for management costs and capital work so lease income is considered alongside these expenses.

For a broader view of how a property fits within portfolio construction, see the property portfolio models guide.

Checklist

• Match rent roll entries to executed leases and amendments.
• Reconcile billed rent to collections, ledgers, and bank records.
• Identify arrears and concessions; review disputes and vacant space assumptions.
• Review options, expirations, termination rights, and rent commencement dates.
• Confirm tenant cost obligations and support for ancillary income.
• Stress slower lease-up, lower renewals, and longer vacancy.
• Record each mismatch and the evidence needed to resolve it.

Go deeper: deal IRR and MOIC calculator.

Read next: How should investors assess a development project's construction budget and timeline?

In my experience with working with family offices and running my own businesses, it's often better for both parties to have compensation designed to reward consistent, long-term, excellent performance, not just "good" performance, and to do so in a way that is aligned with the family office's investment objectives and values.

Sources: Family Office Club investor due diligence framework, The Single Family Office. Informational only, not financial, legal or tax advice.