My agent sent me a four-plex with a rent roll that doesn't match the leases

Question

Got a package on a four-plex from an agent I've been talking to about representation. The listing sheet shows $3,400 a month gross. The leases she forwarded add up to $3,050, and one of the four is a month-to-month with no written lease at all, just a note that the tenant pays $700.

She said the $3,400 is market rent and that's how listing agents present these. Fine, but she sent it to me as if it were the actual number and I only caught it because I opened the lease PDFs. Now I'm wondering what an investor-focused buyer's agent is supposed to catch before it reaches me, versus what's my job.

omar_haddad · Answer

Reconciling the rent roll against the actual leases is the buyer agent's job on a multifamily package, full stop. Market rent on a listing sheet is marketing copy. The gap you found is $350 a month, $4,200 a year, which at a 7 cap is $60,000 of value. That's not a rounding error she should be passing through without a note.

jordan_ellis2 · Answer

The undocumented month-to-month would worry me more than the $350. No lease means no security deposit trail, no written notice terms, and whatever the state's holdover rules are apply instead of anything you agreed to. Those rules vary a lot state to state.

brandonlee36 · Answer

Every four-plex I've looked at has had at least one unit like that. What I'd want from an agent isn't that they prevent it, it's that the email says "unit 3 is $700 month to month, no written lease, ask for the deposit ledger." @harrow is right that she should have flagged it. Whether that's a fire-her thing or a train-her thing depends on what else she's brought you.

My agent sent me a four-plex with a rent roll that doesn't match the leases

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