Multifamily · Rent and expense analysis
The rent roll doesn't tell you what a buyer will pay.
A rent and expense analysis starts with the real twelve months, not the pro forma, and the gap between current and market rent. These are the lines a buyer checks first.
Current rent isn't market rent. The gap at turnover, loss-to-lease, is where the upside lives.
Underwrite off a trailing twelve months, not one representative month.
Achievable rent growth depends on which regime covers a given unit: City RSO, County RSTPO, statewide Tenant Protection Act, or none.
Owner checklist
Expense lines a buyer checks first.
Each of these gets challenged before a number gets trusted.
- 01Property taxes — reassessed on sale in California. The seller's trailing bill isn't what the buyer will pay.
- 02Insurance — priced off a current quote. Costs have moved meaningfully on older and wildfire-exposed buildings.
- 03Repairs vs. capital expenditures — correctly separated, not blended to flatter NOI.
- 04Utility reimbursement — reported at actual amounts, not netted against the expense.
- 05Management fee — imputed at market rate, even when an owner self-manages for free.
Primary sources
Continue at the original source.
These are pointers, not restatements. Open the source for the complete current requirements.
Property-specific decision
See how this applies to your property.
Start with the address and the real numbers. We can walk through what the analysis actually shows.