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Take a minute or two to become familiar with the Turnover tool. Using it will give you a much more accurate picture of the target property performance in out periods.
 Select Unit
Use the drop down window to select the unit to turnover.
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 Vacancy Dates
Enter the month and year that the unit will first become vacant. For example, if the lease is effective through September of 2010, you can enter November of 2010 as the first month of vacancy.
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 Term of Vacancy
Enter the number of months that the unit will be vacant between tenants. This number should include your estimates for any renovations to get the unit ready, the time required to find a new tenant, and consideration give to when the tenant will actually begin paying rent.
This entry can be for a long a term as you wish, and the model perform all the necessary calculations to accommodate for the vacant period.
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 Initial Rate
Use the pull down windows to establish the new rental rate for the new lease. New Lease in this instance could enter be an entirely new tenant, or simply the new terms for an existing tenant.
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 Rental Increases
Use the pull down windows to select the frequency (in years) for the increase and the rate at which the rent will increase.
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 Activating the Changes
When you are satisfied with the new lease set up , just click OK and the model will perform all necessary calculations. As you use the Turnover Tool, be aware that you are actually building in a vacancy rate. Accordingly, the vacancy factor that you entered in the Operating Expense Set Up Page will be in addition to the results calculated here. To learn more about the Vacancy Factor, see Vacancy and Credit Loss | |
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