Reviewing Rental Statements for Investment Lending
Rental statements are the primary evidence for rental income on investment properties. Reviewing them carefully prevents overstated rental income flowing through to serviceability.
What a managing agent rental statement shows
A monthly or quarterly rental statement from a managing agent typically shows the property address, the tenant name, the weekly or monthly rent, any arrears, management fees, maintenance deductions, and the net amount paid to the landlord. Some statements also show insurance payments and repairs.
Verifying the current rental amount
Confirm that the rent figure on the statement matches what the borrower has declared. For lenders that require a lease agreement, check that the lease rent matches the statement. A small number of lenders will also accept an agent appraisal for a property that is currently untenanted but ready to rent.
Identifying arrears and management issues
Arrears on a rental statement are a warning sign. The assessor will want to know whether the tenant has caught up, whether the lease has been terminated, or whether there is a dispute. Repeated maintenance charges may reduce the net rental income the lender accepts, so cross check those carefully.
Key takeaways
- ✓Use managing agent statements as the primary rental income evidence
- ✓Check the rent against the lease agreement where required
- ✓Flag any arrears for explanation
- ✓Review management and maintenance deductions for unusual patterns
How QualifyMate helps
QualifyMate reads managing agent rental statements and rental income documents, aggregates the figures by property address, and surfaces the data brokers need to confirm declared rental income on the file.
Key terms
Related guides
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