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Loss to Lease


Question:
 
How is "Loss to Lease" calculated?
 
Answer:
 
If "Residential Cash Flow Format" is turned on in an Apartment or Senior Assisted Living property, a line labeled Loss to Lease will appear on the Cash Flow. This formula will subtract Potential Market Rent from the Scheduled Base Rental Revenue to give the Loss to Lease result. For example, potential rental revenue is $500 and market rent is $550, your loss to lease is $50. Please note that Loss to Lease does not affect the bottom line of your Cash Flow, it is just an accounting number.