- A rent roll is a summary: unit by unit, who's paying what, and typically the lease start date or renewal status.
- Discrepancies between the rent roll and the leases aren't always dishonest — sometimes records are simply outdated.
- Beyond the leases themselves, ask for the tenant files supporting each unit, including: - [ ] Signed lease agreements and any amendments - [ ] Payment history showing whether rent has…
The rent roll is often the first document a seller hands over — and the one buyers are most tempted to take at face value. It tells you what the seller says the building earns. It doesn't automatically tell you what you're actually buying into. Apartment building rent roll due diligence in Ontario means verifying that document against the underlying leases, tenant files, and payment history before you rely on it to justify your price.
This article explains what to look for and why it matters.
What a Rent Roll Actually Shows You
A rent roll is a summary: unit by unit, who's paying what, and typically the lease start date or renewal status. It's a useful starting point, but it's the seller's own summary — not an independently verified record. Treating it as verified fact before cross-checking it against the actual leases is one of the most common mistakes in a multi-unit purchase.
Cross-Checking the Rent Roll Against the Leases
| Rent roll says | What to confirm in the actual lease |
|---|---|
| Monthly rent amount | Matches the signed lease, including any side agreements or informal rent reductions |
| Lease term / renewal status | Whether the tenancy is on a fixed term, month-to-month, or approaching renewal |
| Included utilities or parking | Matches what the lease actually promises the tenant |
| Deposit held | Matches what the seller says is being transferred to you at closing |
| Tenant name | Matches the actual occupant — a rent roll listing an old tenant's name after a unit changed hands informally is a red flag |
Discrepancies between the rent roll and the leases aren't always dishonest — sometimes records are simply outdated. But every discrepancy needs to be explained and resolved before closing, not discovered afterward.
Reviewing Tenant Files
Beyond the leases themselves, ask for the tenant files supporting each unit, including:
- [ ] Signed lease agreements and any amendments
- [ ] Payment history showing whether rent has actually been paid on time and in full
- [ ] Any notices sent to or received from tenants, including arrears notices
- [ ] Records of any current or past disputes before the Landlord and Tenant Board
- [ ] Correspondence about maintenance requests or unresolved complaints
- [ ] Deposit records and how they're currently held
Rent Arrears and Outstanding Disputes
Unpaid rent and open landlord-tenant disputes don't disappear when a building changes hands — as the new owner, you generally step into the existing landlord role, arrears and disputes included. Before closing, confirm:
- Which units, if any, are in arrears, and for how long.
- Whether any Landlord and Tenant Board applications are active, and what stage they're at.
- How arrears will be handled at closing — through a price adjustment, an escrow holdback, or another mechanism agreed between buyer and seller.
Existing Tenancies Survive the Sale
A foundational principle to keep in mind: buying an occupied building doesn't let you reset the tenancies. Ontario's landlord-tenant framework generally means existing leases, and the rights tenants have under them, continue after the sale — the new owner becomes the landlord under the existing terms, not a blank slate. This affects both your near-term income expectations and any plans to change unit use or pricing.
Adjustments at Closing
Once the rent roll and tenant files have been verified, your lawyer will typically build the confirmed figures into the closing adjustments — allocating prepaid rent, transferring deposits held in trust, and addressing any arrears identified during due diligence — so that what you actually receive on closing day matches what was represented, not just what was advertised.
Frequently asked questions
What if the seller's rent roll doesn't match the actual leases?
Flag every discrepancy and get an explanation before you rely on the numbers to value the building. Depending on what's found, this can lead to a price adjustment, additional seller representations, or further investigation before you proceed.
Do I inherit tenants who are behind on rent?
Generally, yes — the tenancy and any existing arrears typically transfer with the property, since you step into the existing landlord relationship. This is exactly why arrears review before closing matters, so it can be addressed in your purchase price or closing adjustments rather than discovered afterward.
Can I ask the seller for tenant credit checks or applications?
You can ask, but not every seller will have kept this information, and how personal tenant information can be shared involves its own privacy considerations. Focus your review primarily on the leases, payment history, and any Board proceedings, which tell you the most about actual performance.
Can I raise rents or change tenants once I take over the building?
Existing tenancies and the rules governing rent continue after a sale — buying the building doesn't reset your relationship with existing tenants. Any changes need to comply with Ontario's landlord-tenant rules, which is worth discussing with your lawyer as part of your post-closing plans.
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