Creating Income Schedules
Use the income schedule to set up income and expense data that can be applied to an income valuation based on:
- Property type
- Economic Area
When an income valuation contains data that matches data contained in an income schedule for the fields below, you can select the schedule and apply it to the income valuation.
When a schedule is applied to the income valuation (from the Load Sched Data button on an income valuation's Direct Cap window), the schedule's income and expense data is applied to the income valuation.
- In PACS Appraisal, choose Tools > Income Schedule Maintenance.
The Income Schedules dialog box is displayed.
- Choose New.
The Income Schedule dialog box is displayed.
- Complete the following header information:
- Property Type
- Class - A way of grouping properties in order to compare like properties, for example: Class A - Office, Class B - Office, Class A - Retail, Class A - In-House Properties, and so on.
- Economic Area - An area in which similar types of properties react in a similar way to economic influences acting upon the properties within it.
- Level - A categorization of properties which is customizable according to the requirements of your appraisal office. Some offices use simple names for the levels, such as Level 1 or Level 2.
- Complete the following income information:
- Lease Rate - The dollar per square foot the schedule uses to derive the rent income.
- Occupancy Rate - The normal percentage rate at which the property is leased. The system uses this rate to arrive at the vacancy rate. For example, if the property has a 90% occupancy rate, the system determines the vacancy rate to be 10%.
- Secondary Income RSF -The per square foot of secondary income that is produced annually.
- Cap Rate - The capitalization rate.
- Complete the following expense information:
- Expense RSF - The dollar amount of expense per rentable square foot.
- Tenant Improv Rate - The percentage of effective gross income that the lessor allows for tenant improvements.
- Reserve for Replacement Rate - The effective gross income percentage reserved to replace short-lived property items.
- Management Rate - The percentage paid to the property management company.
- Click OK.