Real estate investing is all about compartmentalizing risk. The better you are at this the better your investment decisions. Few people invest their money without a presumed yield in mind. The Rent Roll Triangle (RRT) assists in compartmentalizing strengths and weaknesses in rental revenue and identifying areas of concern pre-acquisition.
The rent roll is the focal point of determining value. That is what makes rent roll analysis so important.
As an owner of rental property, utilize RRT to measure your operations against potential maximum financial outputs that a rental property asset can generate. RRT will assist you in measuring present day operations against potential gains in revenue. This book will assist you in identifying and isolating operational areas to improve.
The financial condition of your assets should improve incrementally from the knowledge you gain as you focus on the individual aspects of the RRT formula. You will learn the pressure points that require your attention. These will usually be the same pressure points that generate increases in cash flow, and in turn, increases in the underlying value of the assets.