Rent Schedule

What “Rent Schedule” Means in Real Estate (Plain-English definition)

Short definition and common uses

A rent schedule is a structured table or exhibit that lists each tenant’s rent obligations over the lease term: who pays, how much, when it’s due, and how it changes over time. Landlords attach rent schedules to leases and property managers use them for operations, investors and underwriters use them to forecast income, and appraisers use them to estimate market rent.

Two contexts: per-unit rent table vs. payment timetable — why it matters

“Rent schedule” is used in two closely related ways:

• Per-unit rent table: a ledger-style sheet listing unit IDs, tenant names, current rents, lease dates, escalations, recoverable charges (CAM, utilities), and concessions. This is the most common form used in underwriting and marketing.
• Payment timetable: a calendar-like breakdown showing exactly which payments are due on specific dates (useful for lease administration and tenant billing).

Understanding which form you have matters because the per-unit table is used for valuation and modeling, while the payment timetable is used for cash management and collections.

Rent Schedule vs. Rent Roll vs. Payment Schedule (Key differences)

What a rent roll is (and when people confuse the terms)

A rent roll is a snapshot report—often exported from property-management software—listing all units, tenants, current rents, lease start/end, and status (occupied/vacant). People use “rent roll” and “rent schedule” interchangeably, but a rent roll is usually standardized and generated by software, while a rent schedule may be a negotiated lease exhibit with escalations and amortized concessions.

(See also: rent roll.)

What a payment schedule is (timing of payments)

A payment schedule breaks down WHEN payments are due—monthly, quarterly, by milestone—often used for CAM reconciliations, STR bookings, or construction-lease milestones. It’s focused on timing rather than full underwriting detail.

Quick comparison table (purpose, typical fields, who uses it)

Document	Primary purpose	Typical fields	Primary users
Rent Schedule	Underwriting & lease exhibit	Unit ID, tenant, base rent, escalations, concessions, recoveries, lease term	Investors, underwriters, property managers
Rent Roll	Snapshot of tenancy	Unit, tenant, current rent, occupancy status, lease dates	Property managers, brokers, appraisers
Payment Schedule	Payment timing & collection	Due dates, amounts, payee, payment method	Accounting, property managers, tenants

What a Good Rent Schedule Should Include (Required fields)

Unit identifier, tenant name/contact, lease start/end dates

• Unit ID or address line
• Tenant name (entity) and primary contact
• Lease start & expiration dates; optionally renewal options and notice deadlines

Base monthly rent, annual rent, and payment due dates

• Base monthly rent and annualized rent (rent×12) shown separately
• Payment due date (e.g., 1st of month) and grace period

Rent escalation clauses, CPI or % increases, and step-ups

• Clear description of escalation method: fixed step-ups (year 2 = +3%), CPI index + margin (identify index and cap/floor), or market resets
• Effective dates for each increase and calculation examples

Concessions, free-rent periods, security/deposit info

• Free rent or rent abatements — specify period and whether amortized
• Other concessions (tenant improvement allowances, moving allowances)
• Security deposit amount and whether refundable

Additional charges: CAM, utilities, parking, storage — how they’re shown

• Show recoverable charges separately: CAM (monthly/annual), utilities, taxes, insurance recoveries
• Indicate whether charges are billed as NNN pass-throughs, pro rata, or fixed amounts

Lease type (NNN, gross, modified) and special clauses (renewals/options)

• Lease structure (gross, modified gross, NNN) so modelers know which costs are tenant-paid
• Renewal options, expansion rights, termination clauses, and assignment restrictions

How to Use a Rent Schedule to Calculate Income (Formulas & examples)

Gross Scheduled Income (GSI) — monthly → annual conversion

GSI = sum of all contractual rent payments for the period before vacancy or concessions. Common conversion: GSI (annual) = sum(monthly rents × 12) OR sum(annual rents).

Effective Gross Income (EGI) — adjusting for concessions, vacancy, collections

EGI = GSI − Vacancy & Credit Loss − Amortized Concessions + Other Income (parking, laundry, etc.). Use conservative vacancy and collection rates based on market.

Net Operating Income (NOI) — treating recoverable charges and expenses

NOI = EGI − Operating Expenses (exclude debt service and capital reserves). For partially recoverable expenses, show the gross expense and the tenant-recovered portion separately so the NOI calculation is transparent.

Worked example: convert a rent schedule into annual cash-flow numbers

6-unit building rent schedule (monthly): Unit rents = $1,200, $1,250, $1,300, $1,350, $1,400, $1,450. One tenant has 1 month free in Year 1 (concession). Parking income = $50/month. Assume 5% vacancy & collection loss and annual operating expenses (net of recoveries) = $18,000.

• GSI monthly = sum rents + parking = $8,950 + $50 = $9,000 → GSI annual = $9,000 × 12 = $108,000
• Concession (one month free) = equivalent to $1,200 annual reduction in Year 1
• Vacancy & collections = 5% of GSI = $5,400
• EGI = GSI − vacancy − concessions = $108,000 − $5,400 − $1,200 = $101,400
• NOI = EGI − operating expenses = $101,400 − $18,000 = $83,400

These numbers feed underwriting (debt coverage ratio, cap-rate implied value = NOI / cap rate).

How Concessions, Free Rent, and Stepped Increases Are Shown and Treated

Showing free rent and amortizing concessions on the schedule

Show concessions as a separate column. For modeling, amortize the concession over the lease term to reflect true economic rent:

• Amortized concession per month = total concession ÷ remaining lease months
• Report both contractual cash flow (actual tenant payments) and amortized economic rent (for GSI/EGI).

Reflecting stepped increases and CPI escalations for forward cash flow

Include a multi-year column or formula for each period showing base rent by year. For CPI: list index used, measurement period, caps/floors, and sample calculation so future cash flows are clear.

Treatment of CAM/utility recoveries vs. base rent in valuation

Recoveries should be shown separately. Valuation typically emphasizes base rent stability (contractual base rent) and treats recoveries as pass-throughs that reduce net expense but may be volatile. Confirm whether historical CAM overages will recur or are one-time.

Where Rent Schedules Appear in Transactions and Financial Docs

Purchase contracts, offering memoranda, loan packages and underwriting

Buyers attach the rent schedule to purchase agreements and underwriters require it in loan packages. Sellers provide a rent schedule in offering memoranda (OM) to show current income. Always confirm the schedule is supported by leases.

Appraisals and tax returns — how appraisers and lenders use the schedule

Appraisers compare the rent schedule to market rent and operating statements. Lenders use it to calculate debt service coverage and qualifying income. Tax preparers use actual receipts vs. schedule to reconcile reported income.

Leases and addenda — referencing or attaching the schedule

Leases typically reference a rent schedule as an exhibit. If the lease references a schedule that’s missing/ambiguous, that ambiguity should be resolved before closing or occupancy.

How to Verify a Rent Schedule (Due Diligence Checklist)

Request source docs: executed leases, tenant ledgers, payment receipts

• Obtain signed leases and all amendments/exhibits.
• Request tenant ledgers showing payments and balances.
• Ask for payment receipts or bank deposit records tied to tenants.

Cross-check bank deposits and accounting records

• Reconcile reported rents to bank deposits and general ledger entries for at least 12 months.
• Identify non-recurring cash-ins (security deposit transfers, vendor credits) and exclude from rental income.

Verify lease expirations, renewals, and tenant identity

• Confirm lease end dates and options to renew; verify the legal tenant name matches bank deposit payor.
• Confirm any oral agreements are documented or excluded.

Model forward income and stress-test escalations and vacancy assumptions

• Run sensitivity tests on vacancy, collection loss, and escalation caps.
• Compare contractual escalations to market expectations.

Common Red Flags on a Rent Schedule (What to watch for)

Lots of below-market rents or unexplained concessions

Consistent below-market rents without lease rationale or signed concessions are a red flag—may indicate stale leases or undisclosed side agreements.

Expired or inconsistent lease dates listed as current

Entries showing expired leases as “current” suggest missing renewals; confirm whether tenants are month-to-month and whether new terms exist.

Large “estimated” rents, missing tenant names, or unverifiable payments

Estimated rents, redacted tenant names, or missing payment evidence reduce transparency—request supporting docs or a third-party attestation.

Discrepancies between schedule and bank/ledger records — next steps

If totals don’t reconcile, require seller accounting to reconcile differences, provide corrected schedules, or hold back proceeds until verified. Escalate to legal/accounting if unresolved.

Practical Steps If the Lease References a Missing or Ambiguous Rent Schedule

How to request the missing schedule and acceptable response time

Send a written request (email) to counterparty asking for the executed rent schedule and supporting ledgers within a defined timeframe (e.g., 5 business days). State that delivery is a condition to closing or funding.

Sample language to add to a contract or addendum (clauses to insist on)

Sample clause (adapt to counsel): “Seller shall deliver true and complete executed rent schedules and tenant ledgers supporting all rents represented herein no later than five (5) business days prior to Closing. In the event of a material discrepancy (defined as >3% of reported annual gross scheduled income), Buyer may withhold an amount equal to the discrepancy in escrow pending resolution.”

When to refuse to close or require escrowed holdbacks

Refuse to close or require escrow if key rent schedules are missing or unverifiable, or if discrepancies materially affect underwriting (e.g., >5% impact to NOI). Use escrow holdbacks to cover unresolved shortfalls until documentation is received.

Rent Schedule Templates & Examples

Simple single-family landlord template (fields and layout)

• Columns: Property Address, Tenant Name, Lease Start, Lease End, Monthly Rent, Due Date, Security Deposit, Notes

Small multi-family investor template with escalations and concessions

• Columns: Unit ID, Tenant, Sq Ft, Lease Start, Lease End, Base Rent (mo), Annual Rent, Escalation Type, Escalation Terms, Free Rent (months), Amortized Concession (mo), CAM Recoverable (mo), Other Income (mo), Notes

CSV/Excel export tips for underwriting and modeling

• Use one row per lease; avoid merged cells.
• Include separate numeric columns for base rent, recoveries, and concessions so formulas can reference them.
• Export dates in ISO format (YYYY-MM-DD) to prevent locale parsing errors.
• Keep a version history and a reconciliation tab showing sum checks vs. GL deposits.

Frequently Asked Questions (Short Q&A)

Is a rent schedule the same as a rent roll?

Not exactly. A rent roll is typically a software-generated snapshot; a rent schedule is often a lease exhibit or underwriting document that may include escalations and amortized concessions. They overlap and are commonly used interchangeably in casual conversation.

What specific fields must appear on a schedule?

At minimum: unit identifier, tenant name, lease start/end, base rent, payment due date. Best practice adds escalations, concessions, recoverable charges, and contact info.

How do I treat utilities, CAM, parking, or other charges?

Show them as separate line items/columns. For valuation, include recoverable charges in EGI if historically collected and contractually recoverable; exclude them from base rent calculations unless they’re contractually part of rent.

How do escalations/CPI adjustments appear?

Include the method, index name (e.g., CPI-U), measurement date, cap/floor, and an example calculation. Provide year-by-year projected amounts for modeling.

How does the rent schedule affect valuation, cap rate, and loan qualification?

Rent schedule defines contractual cash flow (GSI). EGI and NOI derived from the schedule determine cap-rate implied value (Value = NOI / cap rate) and lender metrics (DSCR, LTV). Accurate schedules are critical to avoid mispricing.

What to do if the rent schedule doesn’t match tenant payments?

Demand supporting ledgers and bank records. Adjust underwriting to actual collected income or require seller credits/escrow for unsubstantiated differences.

Real World Application (Fictional scenario to illustrate use)

Scenario: Buyer uses a rent schedule to underwrite a 6-unit building — step‑by‑step

Buyer receives a seller rent schedule showing 6 units with rents totaling $9,000/month but sees a free month concession on Unit 2 and a line item “estimated rent” for Unit 5. Buyer requests leases, ledgers, and bank deposits.

Walkthrough: converting schedule to GSI/EGI, spotting a concession, and resolving it

• Step 1: Convert listed monthly rents to annual GSI = $9,000 × 12 = $108,000.
• Step 2: Identify concession: Unit 2 one month free = $1,200 reduction Yr1.
• Step 3: Verify “estimated rent” — ledger shows $0 deposits for Unit 5 for two months → treat as vacancy until verified.
• Step 4: Apply 5% vacancy/collection and subtract concession to get EGI; subtract operating expenses to get NOI.
• Step 5: Buyer negotiates $3,600 escrow holdback (equivalent to estimated vacancy & concession risk) until deposits and lease for Unit 5 are delivered.

Outcome: how fixing the schedule changed the buyer’s offer and lender acceptance

After reconciliation, annual NOI increased from $80,000 (unadjusted) to $84,000 (verified). Buyer’s revised offer increased slightly but lender required the seller’s reconciliation before final approval. The escrow holdback was released once documents matched the schedule.

Takeaways and Next Steps (Actionable checklist)

Immediate actions for landlords, investors, tenants, and lenders

• Landlords: keep a current rent schedule attached to each lease and provide signed exhibits to buyers/lenders.
• Investors/buyers: request executed schedules, ledgers, and bank deposits early in diligence.
• Tenants: keep copies of schedules/exhibits that define your payments and escalations.
• Lenders: require reconciled schedules and sample deposits during underwriting.

Documents to request, model templates to use, and when to involve legal/accounting

• Request: executed leases, lease amendments, tenant ledgers, bank statements, CAM reconciliations.
• Model templates: use spreadsheet templates with separate columns for base rent, recoveries, concessions, amortizations, and effective dates.
• Involve counsel/accounting if schedules include ambiguous escalations, side agreements, or material discrepancies.

Links/resources to download a rent schedule template and due-diligence checklist (suggested follow-ups)

Use your property management software export or create an Excel/CSV using the column lists above. Search for “rent schedule template CSV” or request a model from your accountant or broker. Keep one version for “contractual cash flow” and one for “amortized economic cash flow” for underwriting.