Concession Rent Presentation

Rent Presentation This type of concession is designed to give the impression that you are offering discounts or other specials, without actually lowering the amount of money that is required for a lease. The amount of total rent collected is raised to include the amount of the concession, and the concession is then applied to it, in one of several ways: as a one-time concession across the lease term, or for a given number of months. A transaction code is selected for the concession during setup, and it will be booked to the G/L. For example, assume that you offer a concession of one free month on a 12-month lease for an $800 unit. The total rent for 12 months will be $9600. Since the first month is free, this amount must be collected in the next 11 months, calculating the monthly rent amount and the first month concession amount as 9600/11 = $872.72. The scheduled rent billing for the 12 months will be $872.72, and a concession of $872.72 is given in the first month. This concession type must be "anchored" to (associated with) a single lease term, which is used to calculate the displayed concession amounts for all lease terms. For example, if the concession is for a one time amount of $800, and you anchor the concession to a 12-month lease term, the concession amount for a 6-month lease on the same unit is calculated as $400, the concession amount for a 3-month lease on the same unit is calculated as $200, and so on. This ensures that the adjusted payment schedule that displays for any given lease term for a unit is proportionally accurate to the concession amount that will display for any other lease term that you establish. You can create multiple rent presentation concessions, though only one concession of this type can be in effect at any given time for any given unit. For example, you might create one rent presentation concession that is applied to half of the units on your property, and another rent presentation concession that is applied to the other half of the units on your property. Both concessions in this example are applied to all lease terms (and cannot be changed) when the concessions are created; however, unit assignments override lease term assignments when determining which rent presentation concession is applicable. Additionally, the only other types of concessions that can be in effect at the same time as a rent presentation concession are special terms and early bird concession types, though an early bird concession cannot be assigned to a floor plan to which a rent presentation concession is assigned. Each concession of this type can be set up to include various terms, each of which is separated into the following categories: · Look and lease: This concession setting allows you to apply a one-time concession amount to all lease terms. · And one of these: These concession settings are applied multiple times during the term of each lease, based on a monthly recurring amount, a monthly recurring percentage of market rent, or a specific number of months for free. Concession amounts determined by percentages now round to the nearest dollar. If you also use YieldStar Price Optimizer, the only type of concessions that you can set up are the Rent discount and Rent presentation concessions. How to Get Here Administration Navigation menu è Administration è Other è Concessions 1. To enter concessions for your property, click the Administration menu item. 2. In the Leasing & Rents section, click Other. In the Setup section, click Concessions. Entering a Rent Presentation Concession 1. Enter the concession Description that is displayed on the Concessions and Available units pages. 2. Select "Rent presentation" as the Type of concession. After saving the concession, if you then assign it to a unit, the unit can have only one rent presentation concession in effect at a time. 3. Select the lease type(s) this concession Applies to: · New: The concession applies to move-ins (new residents). · Transfer: The concession applies to residents who submit a transfer request. · Renewal: This type is unavailable for rent presentation concessions. 4. Enter the From and To effective dates, which are the concession start and end dates. Leases that start on or within this date range are eligible for this concession, based on the types of leases the concession applies to, as selected above. 5. Enter a number of months in the Anchor lease term months field. The system calculates the displayed concession amounts for all lease terms.to which the concession should be "anchored" (associated with) 6. In the Look and lease section, select the appropriate option to indicate whether you want to apply a one-time concession amount. · None: This option indicates that look and lease settings do not apply to the concession. · One time amount: Enter a flat dollar amount that equals the total amount of the concession. For example, if a $1000 concession is anchored to a 12-month lease, the system divides the concession amount across each month of the lease. Select the Transaction code that system uses to post the concession. 7. In the And one of these section, select the appropriate option to indicate whether you want to apply a concession amount over multiple months. · None: This option indicates that no other settings apply to the concession. · Monthly recurring amount: Enter a flat dollar amount that should be applied to each month of a lease. If you select this option, enter the Transaction code that should be used to book the concession to the G/L. · Monthly recurring percent of market rent: Enter a percentage of market rent that should be applied to each month of a lease. If you select this option, enter the Transaction code that should be used to book the concession to the G/L. Months free: Enter the number of months free that you want to offer for each lease. If you select this option, enter the Transaction code that should be used to book the concession to the G/L.