How to get accurate prior rental income numbers?

Question

I'm in process of making first few offers and I'm trying to do my due diligence and discover true rental income numbers from seller. However, when I've asked to see these numbers before making an offer the seller/agent seem taken aback. Is there a better way to ask? I've never had an issue asking my sellers to provide rent rolls, and they usually understand why it's being asked for.

Braden Hobbs · Answer

@Ryan Gillette NA Beard

Great idea on adding it as a contingency. Hadn't thought of that, since it's never been an issue. This agent is acting like I'm asking for the title to be signed over for free.

Andrew Davis · Answer

@Braden Hobbs, hadn't heard of padmapper, I'll add that to my toolbox, thanks!

Braden Hobbs · Answer

@Andrew Davis

Thanks for the sites on estimating rents. I'd also throw out some of my sources.

-padmapper.com

-realtor.com (then search on rentals)

Jeff B. · Answer

If the current manager / owner can't or refuses to state rental income - - punt, walk away.

Everything depends upon this number and if they can't cooperate here, they'll misrepresent or hind other info too.  You're trying to invest, not arm wrestle.

Andrew Davis · Answer

Hey @Braden Hobbs,

Are you talking commercial or residential?

If it's commercial, it's obviously to be a huge part of your due diligence process and any offer you make should be contingent on receiving rent rolls.

If you're talking residential, if the property is occupied, you should require the current tenant's lease as one of your contingencies.

A few great resources for determining rents (in addition to @Curt Davis' rentometer suggestion)

• A local property manager will be a great resource for you.  When I'm getting ready to make a serious offer on a property, I always reach out to my property manager and he has always been right on the money, or extremely close.
• Zillow
• Your local agent will be able to pull rental comps for you
• Craiglist has a map feature that you can use to determine rents in the area.

Hope that helps!

Ryan Gillette · Answer

If they're not prepared with that information, it may seem like a hassle. There's also a slight possibility they didn't know what a rent roll meant - or thought you were asking for expenditures as well. Either way, if they're not willing to provide rental figures, you could get a written figure from them and make your offer contingent upon that figure being accurate contingent on leases being provided prior to your inspection window. You get your deal, and it alleviates any concern they have about you being a serious buyer or your offer being in their ballpark before they spend the time to gather those documents.

Curt Davis · Answer

rentometer.com  is a source I use to help determine market rents.