How does it compute Deferred Rent?
The Tool computes deferred rent by taking the difference between the contractual rent payments and straight-line rent expense using the input “As Of” the date of the report. Contractual rent payments are determined using the rental payments amounts and effective dates that the user provides when they set up the lease and are computed through the date of the report. Straight-line rent is computed by taking total contractual rental payments over the life of the lease and dividing it by the number of days in the lease. The number of days in the lease is determined using the turnover date as the first day of the lease and the expiration date as the last day of the lease. This daily straight-line rent amount is then multiplied by the days in the period as of the date of the report. The Tool is a daily model and can compute deferred rent as of any date the user specifies. It also correctly accounts for terms that include a partial month and for terms including leap years.
