What's the best way to model free rent/concessions for a multifamily lease-up in excel? MONTHLY cash flow.
It's easy to do if it's just 1 month. But what if concessions are assumed at 6 weeks. What's the best/simplest formula or way to do this in excel?
There's 52 weeks in a year, so 6/52 on annual rent.
Trying to do this on a monthly basis (monthly cash flow)!
if 6 weeks...
first month = 0
second month = 50% of rent (or however it is specified)
of course a lot of concessions get factored in month 2, or spaced over time, so just need the details. Not sure why this would be hard to model
Just do a percentage, you’re just creating a false sense of accuracy by making it any more complicated than that
Agreed. I have found percentage of GPR to be a lot more effective for lease-ups.
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