The rental component is made specifically for modelling rental income, allowing you to forecast rent on a monthly basis for any number of units.
The rental rate for the rental component can be set monthly, quarterly or annually. Regardless of which frequency you choose to model, your rental income will be recognised monthly on reports.
The number of units input allows you to model several rental units in one rental component.
Rental Adjustments
Within your ‘Settings’, the general inflation rate will not apply to the rental income component. Instead, if you wish to drive the rental income component by inflation, click the ‘Model Rental Adjustments‘ toggle.
The inflation rate table that becomes visible is defined in settings as ‘Rental Income Adjustment‘. Note that it is separate from the general inflation rate table within your settings.
You can modify the table rates directly in your settings which will affect all rental income components where the ‘Model Rental Adjustments‘ toggle is on. Or, if you wish for different rates to be applied specific to this rental income component, you can click the ‘link‘ icon in the upper right corner of the table to modify the table directly in the component.
In addition to the table rates, you can also choose to add or subtract a percentage/currency figure from the rental income figure.
The modelled rental adjustments will adjust your rental income at the start of the next financial year.
Voids and Bad debt
You can model forecasted voids and bad debt using the corresponding percentage inputs.
These percentages will reduce the rental income by the specified amount.
