Hi everyone,
I am working on creating a model that projects both GAAP and cash 3-year P&Ls for multiple properties. I have the following data for each property: monthly lease rental, lease expiry, current appraised value and future values for each year through 2030.
Does anyone have any templates for this? I would also appreciate any help as to how to project these out through the 3 years (wouldn't revenue be flat since it's just based on the rental income?), how to show this on a GAAP and cash-basis, etc.
Thanks!
Your rents would increase at renewal after lease expiration depending on the lease terms. Since lease agreements expire on a rolling basis there would be a loss to lease. Most residential rental payments are due by the 5th of each month, so you'd need to account for receivables and bad debt/allowance for bad debt and collections since you accrue and recognize revenue under GAAP basis. Under cash basis, you would recognize revenue and expenses when cash is actually received/used.
Thanks! That's really helpful.
To clarify your first point, if none of the property leases that I am evaluating expire within the next 3 years (which is all I am projecting the P&L out for), then rental revenue would be the same through the 3-year projection period. Is that right or am I missing something?
Maybe. Are rents the only source of revenue? I'm guessing this wouldn't be residential, but there might be escalation clauses that increase rents each year.
Autem vel non voluptas numquam. Sit corrupti velit eaque voluptatem rerum. Occaecati et ipsa pariatur voluptas.
Laudantium natus est et. Error et nihil commodi qui impedit eum. Ut dolorem aliquid dolores laudantium hic delectus ut perspiciatis. Minus cum ratione nesciunt eligendi. Ut consequatur aut voluptates saepe nobis rerum.
Commodi ut doloremque quisquam dolorum. Non nulla tempore impedit accusantium. Dolorem aspernatur velit laboriosam nulla earum. Totam esse incidunt neque optio inventore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...