Commercial Rent Roll and Lease Abstract Review in Alberta

1. Freeze the review date and source files

Obtain the native rent roll, complete lease files, tenant ledgers, billing reports, receipts, deposits, operating-cost statements and current occupancy plan. Record the effective date, system, preparer and later corrections.

Do not reconcile a month-end rent roll to a different-period ledger without explaining the timing. Maintain one controlled version and an exception log.

• Effective date
• Native rent roll
• Lease index
• Billing and collection
• Deposit record
• Occupancy plan
• Exception log

2. Match tenant and premises

Tie the legal tenant and guarantor to the lease, amendments and corporate evidence. Match unit, floor, area, storage, parking, signs, patio, yard and other premises rights to plans and observed occupancy.

Flag trade names, related parties, undocumented occupants, shared areas, holdovers, early possession and vacant units. A payment from an affiliate does not by itself amend the tenant party.

3. Trace dates and options

Record execution, possession, fixturing, commencement, rent commencement, expiry, termination and notice dates from the source clauses. For options, state exercise window, conditions, rent-setting process, exclusions and status.

Do not add renewal terms to weighted-average lease term or value as though already exercised. Keep contractual term and scenario term separate.

4. Reconcile base and variable rent

Tie current and future base rent to the lease schedule and amendments. Recalculate steps, partial periods, area changes, percentage rent or other variable formulas and compare them with invoices and receipts.

Separate scheduled, billed, collected and outstanding amounts. Explain every concession, abatement, credit, deferral, repayment plan and write-off.

5. Reconcile additional rent

Map recoverable expense categories, proportionate share, gross-up, caps, expense stops, exclusions, management charges and audit rights. Compare budget estimates, actual statements, reconciliations and tenant balances to the lease.

A rent roll's additional-rent amount can be an estimate rather than final economic recovery. Underwriting should expose unrecovered costs, disputes and timing.

6. Record security and credit support

List deposits, prepaid rent, letters of credit, guarantees and other security with amount, holder, expiry, source document and transfer requirements. Confirm the accounting and physical record rather than relying on the rent-roll field.

Legal advice should determine enforceability and release. A guarantor's name or historical financial statement is not evidence of current capacity.

7. Abstract non-financial value provisions

Cite use, exclusivity, co-tenancy, assignment, subletting, expansion, contraction, termination, purchase, first-refusal, signage, parking, hours and relocation provisions. Flag conditions, notice and remedies.

These terms can affect renewal, reletting, financing and sale. A concise abstract should preserve clause references and questions for counsel rather than interpreting legal effect.

8. Add landlord obligations and leasing capital

Record uncompleted tenant improvements, allowances, commissions, repairs, maintenance, code work, restoration and future commitments. Link the abstract to contracts, invoices, permits and the capital plan.

Build cash timing for free rent, remaining inducements, rollover capital and vacancy. NOI alone does not show the capital required to preserve or replace income.

9. Compare tenant statements and occupancy

Reconcile tenant estoppels or confirmations to the abstract and financial record. Record differences in parties, dates, rent, deposits, options, defaults, landlord work and other stated facts.

Use site inspection and management interviews to test physical occupancy and operational facts, subject to access and tenant sensitivity. Neither observed occupancy nor a certificate replaces the contract.

10. Publish an auditable exception report

For every material difference, state the competing sources, amount or clause affected, responsible reviewer, required resolution, underwriting treatment and closing consequence. Preserve factual, legal and projection columns separately.

RECA's commercial competency framework expressly identifies rent rolls, lease abstracts, estoppel certificates, operating budgets and financial statements as commercial-practice knowledge. This guide is educational and does not replace legal, accounting, appraisal, privacy or investment advice.