Adjusting Revenue
To adjust the additional sources of revenue for a component, navigate to the Proforma Income section of the Property Valuation page. The Revenue section of the Cash Flow model should already be populated with the proforma rental revenue for the component, however users can adjust the revenue source. To adjust the revenue source, select the drop down under "Gross Revenue Source" and choose between Rent Roll Revenue, Rent Comps Revenue, or Alternative Gross Revenue.
If the user selects Alternative Gross Revenue, then they can use any hard-coded revenue value of their choosing.
Adjusting Cash Flow/P&L
Each section of the Cash Flow is editable and can be adjusted based on the users preferences.
To edit the Cash Flow, select "Edit Cashflow Table" on the right side of the Proforma Income page:
Here you can edit or remove the existing line items, or add new line items.
To remove a line item, select the circled subtraction sign on the right side of the item you wish to remove. To add a new line item select "Add New Line Item" in the corresponding category and complete the Description, Value, and Unit of Measure.
The Description in each Category is completely customizable except for Vacancy because it is directly tied to the Percent of Revenue.
Once you edit or add the Description, enter the Value amount you would like to utilize, along with the corresponding Unit of Measure for that value.
Unit of Measure
The unit of measure field will dictate how the line item value is allocated within the profit and loss statement. There are five units of measure options in the Vacancy & Concessions and Other Income categories:
-Percent of Revenue: when Percent of Revenue is selected, users are inputting a percentage that will be multiplied by the Total Revenue value.
-Percent of Sales Comp Valuation: when Percent of Sales Comp Valuation is selected, users are inputting a percentage multiplied by the Total Sales Comp Valuation.
-Amount : when Amount is selected, users are inputting a hard-coded value.
-Amount Per SF: when Amount Per SF is selected, users are inputting a value that will be multiplied against the total square footage of the component.
-Amount Per Unit: when Amount Per Unit is selected, users are inputting a value that will be multiplied against the total unit count of the component.
There are six units of measure options in the Operating Expenses category:
-Percent of Revenue: when Percent of Revenue is selected, users are inputting a percentage that will be multiplied by the Total Revenue value.
-Percent of Effective Income: when Percent of Effective Income is selected, users are inputting a percentage multiplied by the Total Effective Income.
-Percent of Sales Comp Valuation: when Percent of Sales Comp Valuation is selected, users are inputting a percentage multiplied by the Total Sales Comp Valuation.
-Amount : when Amount is selected, users are inputting a hard-coded value.
-Amount Per SF: when Amount Per SF is selected, users are inputting a value that will be multiplied against the total square footage of the component.
-Amount Per Unit: when Amount Per Unit is selected, users are inputting a value that will be multiplied against the total unit count of the component.
There are seven units of measure in the Fixed Charges category:
-Percent of Revenue: when Percent of Revenue is selected, users are inputting a percentage that will be multiplied by the Total Revenue value.
-Percent of Effective Income: when Percent of Effective Income is selected, users are inputting a percentage multiplied by the Total Effective Income.
-Percent of Sales Comp Valuation: when Percent of Sales Comp Valuation is selected, users are inputting a percentage multiplied by the Total Sales Comp Valuation.
-Percent of Total Operating Expenses: when Percent of Total Operating Expenses is selected, users are inputting a percentage multiplied by the Total Operating Expenses.
-Amount : when Amount is selected, users are inputting a hard-coded value.
-Amount Per SF: when Amount Per SF is selected, users are inputting a value that will be multiplied against the total square footage of the component.
-Amount Per Unit: when Amount Per Unit is selected, users are inputting a value that will be multiplied against the total unit count of the component.
Once you have entered the new line item, value, and unit of measure, select save. The new line item will now be displayed within the proforma profit and loss statement and will be factored into the overall net operating income of the component.