RENT ROLL SECTION - EXISTING RENT ROLL
Welcome to this video. In this video, I am going to cover existing rent schedule in the rent roll tab of ARGUS Excel Model to show you how to input existing rent roll and what is happening in the backend.
The First Tenant
The first tenant is NBC Marketing Services, Inc in suite 100. Obviously, the suite is occupied. The size of the suite is 48,174 square feet. According to the rent roll, the tenant moved in November 1st 2002 and the lease will expire at October 31st 2021. I will go back to click on the INPUT LEASE button. A window called Rent Roll pops up. I will use this window to input this tenant’s existing rent roll. The column header is year 1, year 2 and keep going to year 8. The row header is month 1, month 2 and keep going to month 12. The way I will read this table is: the intersection between year 1 and month 1 stands for the first month of the first year of my holding period, which is October 1, 2018. You could revisit my second video in the ARGUS Excel Model series that covers the basic information section to see where I input the deal close date. If I follow this pattern and read the intersection between year 1 and month 2, that white box would stand for November 2018. If I keep counting this way, the last white box stands for October 2021, which is exactly when the existing lease expires. If we close the window and change the lease expiration date to December 31th 2021 and click the INPUT LEASE button again, I can see two additional white boxes appear at the end to accommodate the extended lease term. Just to fully test the power of this user input window, I will extend the lease expiration date for 10 years and bring up the window again. I can see the number of white box increases accordingly so now I know this window will automatically adapt to the change in expiration date. I will set the expiration date back to August 2021 and start inputting the existing rent roll. The annual rate is 15.5 dollar per square foot. I would make sure I am inputting the annual rental number rather than the monthly one. I finish defining the rental for NBC in October 2018, and I will move to the next white box and do it for November 2018. Input 15.5 too. I can keep going like this until the last white box but it is very time-consuming. Luckily, there are three buttons on the top: Copy Down button, Copy Across button, Copy Down and Across button. If I click the Copy Down button, the number in the active white box will duplicate to the bottom of the column. If I click the Copy Across button, the number in the active white box will duplicate all the way across the row. If I click the Copy Down and Across button, the number will duplicate across the board. I am going to save for now. Click the button and bring up the window again. I can see all the data has been saved. I will do some simple calculation in the white box. 15 dollars 50 cents plus 1 and hit enter. The calculation is done automatically in the white box. If the rent roll tells me the rent is going to be bumped up by 1 dollar in the second year, I would hit the copy down and across button. Let me close the window and bring it up again to show an easier way to do this. There is the operation white box on the left top corner. Type in plus 1 and click the Calc button in the first row. I can see the rent has increased by 1 dollar in the month 1 of each year. This is a powerful tool and time saver. There are 12 Calc buttons on the left, which correspond to different months to inflate the rent. I will click the Save button. This window makes inputting data easier and it stores the data in Tenant Monthly tab.
I can see the rent schedule is 15 dollars (50 cents) per square foot for NBC from October 2018 to September 2019, which is a period of 12 months before it bumps up to 16 dollars (50 cents). This is in line with what I previously input in the window. Keep scrolling to the right to make sure everything matches. Rent bumps up to 17 dollars 50 cents in October 2020 and ends in August 2021, which matches what I input in the Rent Roll tab for Lease End Date.
Let’s do the next tenant. 105 for suite number. North America, Inc. Occupied. 2507 square feet. For the current rent roll, March 1st 2012 for lease start date and May 31st 2020 for lease end date. Click the Input Lease button. Input 15.5 dollar; click Copy Down and Across. I will say the rent increases by 3% each year so type in times 1.03. The inflation timing is month 2 so I will click the second Calc button. I can see it bumps up to 15.96 in month 2 of year 1 and 16.44 in month 2 in year 2. Click Save. I can go back to the Tenant Monthly tab to check if data is stored properly. North America appears. Everything looks good. For the timing being, I am not going to input all the tenants’ information in this video. The rest of the process is largely the same as the first 2 tenants except the last 4. I will fast forward to the last 4 suites. According to the current rent roll, these 4 suites are empty. As usual, I will input suite number of 108. The placeholder of tenant name is “Vacant”. Most importantly, I select zero in the dropdown menu which stands for status “vacant”. And input 188 square feet. For the next tenant, suite number of 110. Tenant name is “Vacant”. Status is vacant. 2038 square feet. The next one, suite number of 202. Tenant name is “Vacant”. Status is vacant. 7875 square feet. The last one, suite number of 365. Tenant name is “Vacant”. Status is vacant. 2010 square feet. Alright, I finish the existing rent roll input.Thank you for watching this video. I will see you in the next one.