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In this Watch Me Build video I reveal you how to build a customized lease schedule module for long-lasting leases. The foundation of the module is an easy INDEX/MATCH mix that takes a lease schedule and designs the rent money flows throughout the entire hold duration.

I also consist of an optional file that you can download and use to follow together with the video. That file includes both a 'Template' and 'Completed' tab. You're also welcome to take the finished variation, and include it straight into your own model.

Are you an Accelerator member? See the 'Modeling Short-Term and Long-Term Leases course in the curriculum. Additionally, if you're an Accelerator Advanced Member take a look at course 4, lesson 7 of the 'Advanced Modeling - Residential Or Commercial Property and Portfolio' endorsement for extra strategies for modeling leases. Not yet an Accelerator member? Consider joining the genuine estate financial modeling training program utilized by top real estate companies and elite universities to train the next generation of CRE experts.

A lease schedule is a table that notes out the base lease by date. So for example, the lease schedule for a 75,000 SF spaced leased to a commercial on a 7-yr lease with 0.15/ SF bumps every year.

Rent/Yr

- Jan 1, 2018 - $337,500. Jan 1, 2019 - $348,750. Jan 1, 2020 - $360,000. Jan 1, 2021 - $371,250. Jan 1, 2022 - $382,500. Jan 1, 2023 - $393,750

The rent schedule is consisted of in the lease to detail the base rent paid by the tenant. So using the lease schedule above, we understand that the renter pays 382,500 rent in 2022 ( 31,875/ month). The lease schedule therefore ends up being an essential input for modeling the prospective lease of a residential or commercial property.

A lease schedule module belongs of a property design that anticipates the potential rental earnings over the hold duration. So utilizing the example above, the lease schedule module would take the lease schedule and determine exactly the rent for each duration. And ideally the module would do this in a dynamic way.

The module will consist of a lease roll noting the salient inputs for each renter. So for example, the lease roll would consist of renter name, suite, rented location, lease start date, lease end date, current lease, etc. Each occupant would then have a lease schedule that details how the base lease modifications over time.

The module then takes the rent roll, the lease schedule, and designs the real cash flow for each duration.

Quick Note: Not interested in DIY analysis? Consider working with A.CRE Consulting to handle your bespoke modeling project.

Watch Me Build Video - Partitioning the IRR in Real Estate

So in this Watch Me Build video, I show you how to develop a rent schedule module for a long-lasting lease. I initially drop in an export of a lease roll. From there, I include a lease roll for a single tenant (National Insulation, Inc.) and link the relative details from the rent schedule to the lease roll.

Next, I model out the rent by month over a 132 month analysis period. I use boolean reasoning to just model lease in periods where the lease is in force. And I utilize an INDEX/MATCH combination to draw in the lease from the rent schedule based on the duration.

The outcome is a quick and simple way to dynamically design a rent schedule.

Download the Rent Schedule Module Exercise File and Module

To make this tool available to everyone, it is provided on a "Pay What You're Able" basis with no minimum (get in $0 if you 'd like) or optimum (your support helps keep the content coming - typical genuine estate Excel modules cost $100+ per license). Just get in a price together with an email address to send the download link to, and after that click 'Continue'. If you have any questions about our "Pay What You're Able" program or why we provide our models on this basis, please connect to either Mike or Spencer.

We frequently upgrade the design (see version notes). Paid contributors to the design receive a brand-new download link by means of email each time the design is updated.

Bonus: Watch Me Model Rent Schedule Cash Flows Using AI

In this quick bonus offer video, I use ChatGPT to design the month-to-month cash flow for this very same lease.

Frequently Asked Questions about Modeling a Lease Schedule in Excel and with AI

What is a rent schedule?

A rent schedule is a table that lists the base rent by date across the lease term. For instance, it might show yearly lease boosts for an occupant on a long-term lease, such as $337,500 in 2018, $348,750 in 2019, and so on. It becomes a crucial input for modeling rental income.

What is a rent schedule module?

A lease schedule module belongs of a realty design that forecasts rental earnings over the hold period. It uses occupant lease data from the rent roll and a rent schedule to design lease cash flows dynamically for each analysis period.

How is lease designed across time in this module?

Rent is designed using a 132-month analysis period. Boolean logic makes sure lease is just revealed when the lease is active. An INDEX/MATCH formula is then used to pull the proper lease from the lease schedule based on the period.

What Excel methods are used in the rent schedule module?

The model mainly utilizes the INDEX/MATCH mix to pull rent worths and boolean logic to limit lease streams to the lease period. These formulas ensure the module remains dynamic and scalable for longer leases or numerous occupants.

What occupant is used in the example model?

The example model utilizes an occupant named National Insulation, Inc. The lease schedule and lease information for this single tenant are utilized to demonstrate how to and compute lease capital.

Is a downloadable file offered with the tutorial?

Yes. A downloadable file is consisted of with both a 'Template' and 'Completed' variation of the design. It is used on a "Pay What You're Able" basis. Contributors get update e-mails when new variations are released.

How is AI used in modeling rent capital?

A benefit video demonstrates how ChatGPT is used to model the very same rent capital as done in Excel. This showcases how AI can help in structure customized modeling logic using natural language triggers.

Where can I discover more about lease modeling thorough?

Accelerator members can explore in-depth lease modeling in the 'Modeling Short-Term and Long-Term Leases' course. Advanced members can dive much deeper by means of Course 4, Lesson 7 of the 'Advanced Modeling - Residential Or Commercial Property and Portfolio' endorsement.

Version Notes

v1.01

- Misc. repairs and updates to Versions tab

v1.0
toptenrealestatedeals.com
- Initial release

About the Author: Spencer Burton is Co-Founder and CEO of CRE Agents, an AI-powered platform training digital coworkers for business genuine estate. He has 20+ years of CRE experience and has financed over $30 billion in real estate across top institutional companies.