30 Days of 3.0 – Day 6: Last Rental Increase
Welcome to Day 6 in our “30 Days of 3.0” series. Yesterday we talked about how we handle annual rent increases for the leases we generate internally. Today, I’m going to show you how you can model those increases from a point somewhere in the middle of the lease.
Last week’s changes showed how to apply rent control consistently from the beginning of a lease. But in cities with rent control, landlords aren’t consistent with how they raise rents. More importantly, they often only report the date they last raised rent for their marketing brochures, not the date the lease actually started.
If you were to use the date of the last rental increase as the lease’s start date in our system, it would treat the months prior as a brand new lease, with all the requisite vacancies and turnovers. So, we had solved this problem for leases moving forward, but not when we have to generate a prior lease to fill in gaps in the reporting year.
We solved this problem by breaking the old “Is Contractual” field in the “Ledgers => Leases” tab into two separate fields, one for each date that defines the lease. We then added a new option for the Start Date called “Last Rental Increase”. When you select this option, we don’t create new leases for back-filled months, we consider months prior to be part of the same lease, and decrease the rent by the “Rent Change (%/Y)” for the Floor Plan.
There was one more change we needed to make to how we dealt with leases prior to the current one. Come back tomorrow to find out what it is. I’ll see you then, and as always, I hope you have a fantastic day! :)