Investment approach
Tenant and rent-roll verification before buying a building
A rent roll is tested against leases, bank receipts, deposits, indexation, arrears and actual use. The seller spreadsheet is a starting point, not evidence of cash flow.
Short answer
A rent roll is tested against leases, bank receipts, deposits, indexation, arrears and actual use. The seller spreadsheet is a starting point, not evidence of cash flow.
Why it matters when investing in Barcelona
Before signing arras, seller statements must be separated from independent evidence. Title, planning status, debts, occupants and physical condition are verified through different documents. In Barcelona, the same price per square metre can conceal very different planning status, common-element condition, leases and approvals. Every metric therefore needs an address, date, source and list of exclusions.
What to calculate
| Indicator | Question |
|---|---|
| 1 | contracted and collected rent |
| 2 | terms, indexation and security |
| 3 | arrears, concessions and disputed terms |
For “Tenant and rent-roll verification before buying a building”, these indicators do not automatically produce a buy or no-buy answer. They separate verified facts and controllable team actions from external forecasts. The greater the reliance on forecasts, the larger the required margin of safety.
What evidence to request
- document, calculation or inspection confirming: contracted and collected rent
- document, calculation or inspection confirming: terms, indexation and security
- document, calculation or inspection confirming: arrears, concessions and disputed terms
For a decision on “Tenant and rent-roll verification before buying a building”, evidence must cover the same asset, period and scope. A document for another unit, an earlier configuration or a preliminary budget requires adjustment; the key check here is document, calculation or inspection confirming: contracted and collected rent.
How to make the decision
- First define the question the calculation must answer. For “Tenant and rent-roll verification before buying a building”, fix the unit of measure, data date and decision that will follow from the result.
- Next collect independent evidence. A seller document, public register, technical report and commercial quotation answer different questions and do not replace one another.
- Then recalculate the base and downside cases. Do not change everything at once: move the most sensitive variable first, then combine two or three realistic deviations.
- Finally document the decision: assumptions, open questions, owner and deadline. New evidence will then update the model instead of disappearing in messages.
Decision rule
Do not capitalise income that cannot be tied to an effective lease and evidenced payment.
Primary sources
For “Tenant and rent-roll verification before buying a building”, check the rules and data in force on the transaction date. The links below point to official sources; this article does not replace transaction-specific legal, tax or technical advice.
Related resources
To continue with “Tenant and rent-roll verification before buying a building”, use the deal analysis, test “contracted and collected rent” in the investment calculator, and explore the DNPI Capital journal.
Decision worksheet
| Question | Evidence | Decision |
|---|---|---|
| What must be evidenced? | Asset-specific document, calculation or inspection | Verified / assumption / open |
| What changes the full budget? | Price, tax, works, contingency, holding and exit | Recalculate base and downside cases |
| What stops the thesis? | A pre-defined red flag | Stop / request evidence / continue |
Before the next commitment
- Date and cite every key figure.
- Assign an owner and deadline to each open question.
- Do not apply an area average to the asset without adjustment.
- Keep the version of the model used for the decision.
Review a specific property with DNPI
Related priority articles
Questions and answers
What should be checked first?
Document, calculation or inspection confirming: contracted and collected rent.
When should the investment thesis be stopped?
Do not capitalise income that cannot be tied to an effective lease and evidenced payment.
How should this analysis be used?
Use “contracted and collected rent” with documentary evidence and a downside case; separately confirm the legal, tax and technical conditions of the specific asset.
