30 Days of 3.0 – Day 5: Annual Rent Increases
Welcome to Day 5 in our “30 Days of 3.0” series. Yesterday we talked about the new rental patterns we generate, and how we fixed a long-standing problem with how we applied Turnover costs. Today, we’re going to talk about changes we made to help you better model rent-controlled properties.
As we mentioned yesterday, the way our rental patterns handled gaps between leases was very limited, and made it impossible to know, as you cycled through months, if an increased rent was due to an annual rent increase, or a turnover.
To solve that, we now model leases as discreet “Lease” objects, and each Lease is responsible for tracking its own summaries for each leased month. We still needed a way to let you say which Floor Plans are under rent control, so we added a new field to the “Ledgers => Defaults” tab called “Every Year?” When checked, we go through every Lease for every Unit in the Floor Plan, and if it’s longer than 12 months, we raise the rents by the “Rent Change (%/Y)” each 12-month period.
The result gets you much closer to how units are actually leased in the real world. But we still had an issue where the model would be inaccurate if the owner had long-time tenants where they didn’t increase rents like clockwork every year.
So how did we solve that? Come back tomorrow and we’ll tell you about a new modifier on the Lease Start Date that we call “Last Rental Increase”. I’ll see you then, and as always, I hope you have a fantastic day! :)