Like with any other industry, automation in real estate is revamping the way we look at it. Its inculcation has enabled streamlining processes and will make the industry-as-a-whole more efficient.
A major hassle for corporate owners or property managers has been keeping track of all their properties on rent. Especially for corporate property managers, managing a plethora of rental properties can be a real headache.
Thankfully, real estate has something called rent roll, which gives them a bird’s-eye-view of the same and makes their life easier. With technological development, real estate owners and managers have been able to automate the process, making it far less cumbersome.
In this article, we discuss rent roll analysis and reasons to automate it.
Rent roll analysis helps you in ascertaining the validity of rental revenue collected from income property.
Landlords and property managers often have to manage a myriad of spaces. So they have a system to keep track of the rental income received and the pending ones. Especially for commercial real estate investors, a secure and efficient approach to keeping track of their finances is necessary.
Traditionally, rent rolls have been physical documents listing all the rental units owned/managed by an investor. It is the most critical document in the real estate sector and contains all the necessary information to help the involved parties decide their next moves.
Most importantly, it is used by the investors, lenders, and mortgage brokers to assess the current condition of the property and potential rental income scope.
Rent roll analysis refers to managing and obtaining the required information from the available rent roll. In modern days, and with technology's influence, bookkeeping has shifted to an Excel sheet or in some other computerized form. It has helped them draw intricate insights previously accessible to a handful few, and make more informed decisions.
Even though there is no fixed format for it, here are the contents of an effective rent roll :–
With the help of a rent roll, an investor can get a bird's-eye view of his properties. It breaks down the rent per unit, and it also informs him of the total rent amount for his entire investment. It saves the investor's time by collecting and presenting each tenant's lease agreement in a convenient, easy-to-read sheet.
If the owner is looking to mortgage it for a loan, the lender may want to check the rent document. The same is applicable when you want to refinance your property. If you are looking to hire a property manager, he will request you to present the rent roll to understand the past income and the anticipated one.
Here are eight ways to read a rent roll –
Traditionally, property owners would utilize a rent roll to keep track of their dues. With automation at the fore, all the parties involved now use it for different reasons. The end objective, though, remains unchanged – assessing the value of a given unit accurately.
Here is how automation augments the overall value provided by a rent roll analysis system:-
Do you find the traditional rent roll analysis cluttered and difficult to comprehend? With an able rent roll analysis tool, access digital documents, eliminate manual handling and manage it in a much more concise manner. Plus, seamless integration with the rest of your software ensures better results and augment investing decisions without spending truckloads of money.
Real estate is one sector that traditionally demanded a lot of paperwork. Also, these documents need regular updating or are prone to get lost. With a rent roll tool, you can automate communication between various parties involved and reduce the overall operating costs by automating follow-up calls and other similar processes.
A property manager handling a plethora of properties can find it challenging to keep track of his properties' rent increasing potential. With the help of rent roll analysis software, he can get accurate insights to determine the units pending a rental hike. Without the tool, more often than not, it would be hard to gauge the rent increasing potential of your entities manually.
A rent roll presents statistics pertaining to vacancies in the last year and the duration of such an opening. It can help you gauge your turnover rate in a period and how it compares to your present performance. It would allow you to chalk out units with a high turnover rate and find reasons behind them. At times, simple maintenance can help you get over the issue.
A rent roll analysis tool enables you to find such stats in real-time, which would manually take days to comprehend. It would ensure swift action from your side, reducing the waiting period and improving the unit's income.
Often you would come across units for which you are paying high interest or are undervalued. Refinancing the loans on such property would enable you to secure a better deal with improved terms and possibly a lower periodic outflow.
Most banks or other lenders would ask for the rent roll to determine the unit's current and potential value. Rent roll automation ensures accurate results by getting rid of possible human errors and improves your chances of securing a refinanced loan.
There is no doubt that AI forecasts better results when compared to human beings. With the help of past figures, a rent roll analysis tool can picture how much you can expect in the coming months, quarters, or years from a unit. Not only that, it can point out if the figures are below or above market rates, giving you an idea of how to deal with it better.
It is easy to track rent, vacancy, and other factors pertaining to a small multi-family property. But when you are a property manager, life won't be as easy. So what can you do to make it a bit convenient for yourself? Simple, grab a rent roll analysis tool and let it churn out numbers on your behalf.
Property management software gives access to your units' performance in real-time. Integrate it with your accounting software and ensure you keep an accurate eye on your results over time. Such insights also enable you to take requisite precautions to prevent any downslide before it occurs.
For someone managing hundreds of properties simultaneously, handling clerical work can be a real task. Instead, it would be more feasible to let a rent roll analysis tool manage it all effortlessly and let you keep track of it all in real-time. With Docsumo, you can do so and more.
Skip the hassles caused by manual data extraction and let an able tool take over. At Docsumo, we ensure our clients get data in a concise manner, presented in a standard format. With 100 percent manual-intervention-free processes, we provide data with higher accuracy and quick turnaround time.
Are you interested in knowing more about our product and its features? Click here to book a free demo today.
In today’s dynamic business world, filing and archiving official documents in the digital form makes it handy, and works wonders in the future or in unforeseen circumstances.
With an automated data extraction solution, loan documents can automatically be processed end-to-end without any human errors and delays. Automation in loan document processing prevents downtimes, eliminates data redundancy, and allows companies to respond faster to client queries. By combining machine learning with deep learning and OCR, companies can eliminate huge costs, derive actionable insights, and streamline loan processing and approvals through efficient data extraction and analysis.
Mortgage lenders receive multiple identity and income verification documents along with different forms from loan applicants in a variety of formats and styles. Traditional OCR solutions fail to extract data from these semi-structured documents and that’s why more and more lenders are adopting intelligent document processing solutions. IDP solutions not only extract data correctly, they are able to validate extracted data against predefined rules in order to improve accuracy.
Intelligent Document Processing is an automation technology that captures information from a myriad of documents and data sources, extract data, and organizes it for further processing. IDP solutions enable businesses to seamlessly integrate with core processes, eliminate manual labour, address challenges faced in reading different document layouts, and meeting legal & compliance requirements. Accurate data is the foundation of every organization, and IDP assists businesses in dealing with the complexity of processing huge volumes of documents, helping them automate manual data entry processes, and move away from traditional semi-automated OCR workflows.