Reclasses and Accruals
This term describes putting in a placeholder for an expense that hasn't been paid yet.
What is an accrual.
A category for all income other than rent.
What is Other Income.
A three-letter abbreviation for Net Operating Income.
What is NOI.
The goal we have set to complete our make readies going forward.
What is 7 days.
If the project or upgrade covers this much of the units or property, it qualifies for CapEx.
What is 20%
This term describes moving an expense from one category to another.
What is reclass.
We spend this on average when we lose a resident.
What is $5000
An adjustment or discount that we make to the rental rate, deposit, or any fees.
What is a concession.
This is where you should post full turn painting.
What is CapEx.
This electrical component may or may not qualify for CapEx depending on if it's inside our outside.
What are light bulbs.
This term is used to describe revenue and expenses that are recognized and recorded when they occur.
What is Accrual accounting.
This category adds up all the rent from unrented apartments.
What is Vacancy.
Occupancy measurement that calculates "heads on beds".
What is physical occupancy.
This expense category is 40% of our annual budget.
What is Payroll.
This is the key word to determine if an expense qualifies for CapEx.
What is Replace.
This is the minimum amount you can reclass from one GL to another but it can include multiple separate expenses.
What is $1,000.
This term calculates occupied units at current rent plus vacant units at market rent.
What is Gross Potential Rent (GPR).
Models, down units and other apartments that are set aside for a purpose other than to be leased.
What are Non-Revenue Units.
This is where we tend to miscode invoices the most.
What is Repairs and Maintenance.
This is the accounting term that allocates the cost over useful life or life expectancy.
What is depreciation.
The record-keeping system for a company's financial data, with debit and credit account records that validate a trial balance.
What is a General Ledger (GL).
The difference between the last full month's rent for the previous resident compared to what we would rent the unit for today to a new resident.
What is positive lease over lease tradeout.
The difference between market rent and the actual rent for each lease. It also includes the difference between current rent and renewal increases for the year.
What is Loss/Gain to Lease.
This is a fee that is charged to every property for operation of the property on behalf of the company.
What is the Management Fee.
This term describes where CapX falls on our operating statements.
What is "below the line".