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UNIT MIX AND RENT SCHEDULE
The unit mix and rent schedule is a table that is usually in rental property brochure
proformas. It lists the number of units, the type, square footage, and rent. Its purpose is to
give you a picture of the income, by unit and overall for the property. Here’s an example.
Number
ofUniti
Total
Total Rent!
Type Sq. Ft. Sq. Ft. Rent Rent Sq. Ft.
6 1/1 650
2 2/1 750
8 Averages 675
3900 *$475 $2,850 $0.73
1500 *$575 $1,150 $0.77
5400 *$500 $4,000 $0.74
*Current rents average $480 for the two-bedroom units and $422 for the one-bedroom units.
I use unit mix and rent schedule tables to verify the rent income on properties, and from
experience I have yet to ever find one in a pro forma that accurately depicted the actual
income picture. That’s why it’s important to know how to read and analyze this
information. Let’s look a little closer.
Number
of Units
Type
Sq. Ft.
Tot/d
Sq. Ft.
Rent
Total
Rent
Rent/
Sq. Ft.
6 1/1 650 3900 *$475 S2.850 $0.73
2
2/1 750
8 Averages 675
1500 *$575 $1,150 $0.77
5400 *$500 $4,000 $0.74
*Current rents average $480 for the two-bedroom units and $422 for the one-bedroom units.
With this information, the owner is telling you that the total rent for the eight units on
this property is $4,000 per month based on the rents as listed in the “Total Rent” column.
But on this particular table, the seller put asterisks next to the rents to indicate that the actual
rents are lower. Significantly lower see the small print. An inexperienced buyer might look
at this table and conclude that the $4,000 is the actual income of the property. But the fact is,
and by the seller’s own admission, which is rare by the way, this $4,000 is the future
potential income based on higher rents, which may or may not be at the market rent levels.
Let’s see how the income picture changes when we insert into the table the actual rents
for this property.