Rent Schedule: Fill & Download for Free

What amazes me is that none of these answers actually provided this one: When you buy the investment property the appraiser will do the appraisal on a small residual investment form and will provide a comparable rent schedule. Also, they will provide an average rent amount and the underwriter will then allow 75% of that amount to offset the mortgage payment.

Commercial leases typically have rent schedules which will increase the base year's rental amount, either annually or incrementally, over the lease term. These increases can either be fixed by mutual agreement or adjustable based on a financial index (usually the Consumer Price Index) for the region in which the property is located.The term "increase" is generally not applicable since inflationary forces will decrease the rent over a long-term lease.For example, if the rate of inflation is 3% annually, and the rent increases by 3% annually, then the rent remains the same throughout the term of the lease when adjusted for inflation. Indeed, smart brokers do not use the term "increase" because it is not accurate. They use the term "rent escalation" or "rent adjustment" because a rent "increase" suggests the rent is increasing when it is not.Without any adjustments, and assuming an annual inflation rate of 3%, a lease with a flat rent over twenty years will result in rent that is 60% less in the last year of the lease than it was in the first year.

I was a realtor and landlord for over 30 years. Thankfully I sold and closed on my last property in February right before this whole mess started.When I was young and learning I worked for an old broker who owned many properties. He taught me that you need to find tenants that need you more than you need them. One of his tenants was a family with six kids. They had problems finding housing as landlords were hesitant to rent to large families. They became appreciative tenants who always paid on time and kept the property spotless. Same with people he rented to with pets.He also said if great tenants had an issue, it was important to work with them. The end result would always be less costly than eviction, an empty property and then gambling on the next tenant. I learned a lot from him.In my own history I had two memorable situations. I had a couple who had some pets. They stayed in my single family home for over 20 years. Never a problem, kept house cleaned, did some painting and remodeling on their own. Even replaced the carpet. They always paid their rent on time.The husband died suddenly. The wife wasn’t in good shape mentally or financially. To add to her stress she was very worried I’d be kicking her to the curb that month. I assured her that we had a 20 year relationship and we’d work it out. It was a rocky six months but she was able to make partial rent payments and eventually got back on schedule. Seeing that I hadn’t missed a months rent in 20 years prior to this, I forgave the shortage. She stayed another 10 years, again never missing the rent. She was a good investment.The second tenant was a guy who had a seasonal business. In his first year he started missing rent over the winter, swearing he’d make it up when he started receiving spring deposits. I worried a bit but he was true to his word and started sending me double rent payments. So we agreed that would become his annual rent schedule. And it worked out for both of us for the next 10 years.The current pandemic is unprecedented and state by state there will be rules both landlords and tenants will need to abide by. Mortgage holders are also being creative right now, so use all available tools to save your business and be fair to loyal tenants. Think about the long term rather than this sizable bump in the road.