Understanding Rent Rolls: A Guide for Landlords, Investors, and Tenants

Introduction

Key Things to Know

1. 1

   A rent roll is a legally significant document that may be used in financing applications, tax filings, and property transactions, so accuracy is essential.

2. 2

   Tenants have the right to verify that their information is correctly represented on a rent roll, especially during property sales.

3. 3

   In most jurisdictions, new property owners must honor existing lease agreements after purchasing a rental property.

4. 4

   Sophisticated investors typically verify rent roll information against actual bank deposits, lease agreements, and through tenant estoppel certificates.

5. 5

   Property management software can help landlords maintain accurate, up-to-date rent rolls that can be quickly provided when selling a property.

6. 6

   For landlords, maintaining detailed payment histories as part of your rent roll documentation can help demonstrate the quality of your tenant base to potential buyers.

7. 7

   Rent rolls for commercial properties are typically more complex than residential ones, including information about triple net charges, expense reimbursements, and tenant improvement allowances.

New Hampshire Requirements for Rent Roll

• Fair Housing Act Compliance (42 U.S.C. § 3601-3619)

  Rent rolls must comply with the federal Fair Housing Act, which prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. Information in the rent roll should not indicate or enable discriminatory practices.

• New Hampshire Law Against Discrimination (NH RSA 354-A)

  Rent rolls must comply with New Hampshire's anti-discrimination laws, which prohibit discrimination based on age, sex, race, creed, color, marital status, familial status, physical or mental disability, or national origin.

• Security Deposit Documentation (NH RSA 540-A:6)

  Rent rolls must accurately document security deposits, which in New Hampshire cannot exceed one month's rent or $100, whichever is greater. The document should clearly indicate the amount held for each tenant.

• Security Deposit Interest Disclosure (NH RSA 540-A:6, II)

  If the rent roll includes information about security deposits, it should note that landlords must place deposits in an interest-bearing account and provide the account information to tenants within 30 days if the tenancy is for one year or longer.

• Truth in Lending Act Compliance (15 U.S.C. § 1601 et seq.)

  If the rent roll is used in connection with financing, it must provide accurate information to comply with the Truth in Lending Act, which requires disclosure of credit terms and costs.

• Lease Term Documentation (NH RSA 540:2)

  The rent roll must accurately document lease terms, including start and end dates, as New Hampshire law recognizes both written and oral leases, and misrepresentation could violate state contract law.

• Rent Control Disclosure (NH RSA 356-B:10, I(g))

  The rent roll should note that New Hampshire prohibits municipalities from adopting rent control, which affects how rental rates can be adjusted and reported.

• Lead-Based Paint Disclosure (42 U.S.C. § 4852d)

  For properties built before 1978, the rent roll should indicate compliance with federal lead-based paint disclosure requirements, as this information is material to property valuation and tenant safety.

• Americans with Disabilities Act Compliance (42 U.S.C. § 12101 et seq.)

  For commercial properties, the rent roll should document any ADA accommodations or modifications made to units, as this affects property valuation and legal compliance.

• Tenant Privacy Protection (NH RSA 359-C)

  The rent roll must protect tenant privacy by limiting personal information to what is necessary for legitimate business purposes, in accordance with New Hampshire's right to privacy laws.

• Accurate Income Reporting (26 U.S.C. § 61(a)(5))

  The rent roll must accurately report rental income for tax purposes, as misrepresentation could violate both federal and state tax laws.

• Eviction Status Disclosure (NH RSA 540:2, 540:3)

  The rent roll should accurately reflect any pending eviction proceedings, as New Hampshire has specific procedures for evictions that affect property management and valuation.

• Utility Payment Documentation (NH RSA 374:2)

  If utilities are included in rent or separately metered, the rent roll should document these arrangements as they affect property valuation and comply with New Hampshire's utility service regulations.

• Manufactured Housing Disclosure (NH RSA 205-A)

  For manufactured housing parks, the rent roll must comply with additional requirements under New Hampshire law, including specific lease terms and tenant protections.

• Real Estate Settlement Procedures Act Compliance (12 U.S.C. § 2601 et seq.)

  If the rent roll is used in a property sale involving federally related mortgage loans, it must provide accurate information to comply with RESPA disclosure requirements.

• Condominium and HOA Fee Disclosure (NH RSA 356-B)

  For condominium or properties with HOAs, the rent roll should document any association fees that affect net operating income and property valuation.

• Subsidized Housing Documentation (42 U.S.C. § 1437f)

  For properties with Section 8 or other subsidized tenants, the rent roll must accurately document subsidy amounts and program compliance, as misrepresentation could violate federal housing laws.

• Commercial Lease Disclosure (NH RSA 540)

  For commercial properties, the rent roll should document specific terms such as triple net leases, CAM charges, and other commercial-specific arrangements that affect property valuation.

• Vacancy Rate Reporting (NH RSA 358-A)

  The rent roll must accurately report vacancy rates, as misrepresentation could constitute fraud under New Hampshire's consumer protection laws.

• Property Tax Assessment Information (NH RSA 72:6)

  The rent roll should include accurate information that may affect property tax assessments, as misrepresentation could violate New Hampshire tax laws.