|Introduction: The Rent family has basic and straightforward functions for rent projections that don"t involve the complexities of stepped rents or reletting.|
It has two basic rent functions, depending on whether you want to specify your market rent forecast using GrowthRates or FcstVals, these being RentGrow and RentFcst.
It"s also useful know when the last or next review occurs, using NextReview and LastReview.
A note on a couple of the variables used:
- ØReviewMonthsØ is for establishing the length of time between market reviews (eg 5 years = 60 months).
- RevDisc does a couple of jobs. Firstly it determines the extent of any discount that should be applied to the market rent at market review (but not of course to the ØInitialRentØ. Now, this variable can be positive or negative, and the discount applied is the same (ie both 10% and -10% cause a 10% reduction to the market rent). The difference is that if RevDisc is negative, reviews are upwards only. A zero or positive RevDisc will mean that reviews are upwards or downwards. If you want no discount but upwards only, put in a small negative number (eg 1E-9).
- ProjMode is 0 to calculate how much rent accrues in the time period, and 1 to calculated how much is paid in the time period. Both of these settings assume the default Business Functions assumption that the finish date ie ØExpOrBreakØ has no rent accruing on that day. Since property leases usually do have rent accruing on the last day of the lease, you may want to use ProjMode=2 (accruals, including finish date) or 3 (cash, including finish date).