Apartment Lease Audit: How to Verify the Rent Roll Before Closing
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A lease audit checks that the rent roll is true. You compare each lease (or a sample) with what the rent roll says, then compare the rent roll with bank deposits and the trailing twelve months of income. It finds unrecorded concessions, wrong dates, missing leases and rent that was billed but never collected. Do it during due diligence, before your deposit becomes non-refundable.
Rules and practices are as of October 2026.
What documents do I need?
The current rent roll, copies of leases and addenda, the T-12, bank statements for the same period, a delinquency report and the move-in and move-out log. Ask for them in your due diligence request list; see the due diligence checklist. Your contract's due diligence period decides how long you have; see contract deadlines.
What do I check on each lease?
- Unit number, resident names and signature.
- Lease start and end dates, and whether it has gone month-to-month.
- Monthly rent compared with the rent roll.
- Security deposit held and fees charged.
- Concessions, such as free months, and how they are recorded.
- Pet rent, parking, utilities and other charges.
- Anything unusual, such as a staff unit or a discounted family member.
Record each difference in a spreadsheet by unit.
How do I tie the rent roll to the bank?
Add up rent billed per the roll for a month, then compare with deposits for that month. Differences can come from concessions, vacant units, late payments or income that is not rent. Review economic vs physical occupancy to see why full units do not always mean full income. Cross-check with the T-12.
What do I do with what I find?
Group issues into three: errors with small impact, errors that change your numbers, and signs of misstatement. Ask the seller to explain in writing, and decide whether to adjust the price, ask for a credit, extend your review or leave under your contract. If someone has overstated income, take advice before you proceed.
Can estoppels help?
They give a second source of tenant-confirmed terms; see estoppel certificates. A lease audit is usually faster than collecting forms from every resident.
What goes to investors?
Only verified numbers, with the assumptions behind them and a downside case. A rent roll the seller supplied is not enough on its own. See Rule 10b-5 on misleading statements.
How DoorRaise fits in
DoorRaise does not audit leases. After due diligence, it forms the LLC, prepares the offering documents and runs escrow at Enterprise Bank & Trust with wire-only funding under Reg D. It is for apartment buildings with 5 or more units. Fees are $1,500 to set up (due when you submit the deal, non-refundable), then $5,000 a year from closing (only if the deal closes). See the deal page.
FAQ
How many leases should I audit?
All of them if you can. For a large building, agree on a sample with your lender and team, and widen it if you find problems.
Who does the audit?
Often the sponsor, a property manager or an accountant.
How long does it take?
It depends on the size and how quickly the seller delivers documents. Request them early.
What if the seller will not share leases?
That is a warning sign. Raise it with your attorney and consider leaving.
Sources
This article is general information, not legal advice. Talk to a securities attorney about your deal and about what you must disclose. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.