|1. Set up a Rental Forecast as follows|
2. Refer to the rental forecast in your main financial model
- You may want to do your forecast on a separate sheet from your main financial model.
- Type the start date of your forecast into a cell. You might call this StartFcst.
- Type the "base" of the forecast, in months, into another cell. You might call this FcstBase.
- Create the timebase of the forecast, going either horizontally or vertically away from your start date, using the function "=DpM(StartDate,FcstBase)", substituting cell references for StartDate and Fcst Base.
- In the adjacent column to the list of dates (or row if you are going horizontally across the page), put in your forecast values for each time period. The forecast value becomes effective at the date it corresponds to.
- You may want to automate the forecast a little by using another Business Function that will uses a series of growthrates to create the forecast. Try GrowQ which accepts as inputs a StartingValue and series of GrowthDates and GrowthRates .
- You now have a forecast. The next question is how you want to use it.
- You may be using a specific function that accepts a forecast to do the calculations, in which case you just refer to FcstBase, StartFcst and FcstVals (the values in your forecast). As described elsewhere, it helps if these are named ranges. A function you may well be using in a rental context might be one from the Real Estate category, or a general one such as FStepFcst, which gives stepped rent profile where the steps are read off the forecast.
- Alternatively, you may just have a date for which you want to read a forecast value against. In this case use Fcst, which basically does a lookup on the date you supply.