1 / 8

INCOME AND EXPENSE PROCESS

INCOME AND EXPENSE PROCESS. Presented by Michael Tarello, MAI, ASA Vision Appraisal Technology & James McCathern, CEO Patriot Properties May 21, 2008. INCOME AND EXPENSE PROCEDURES. Income and Expense Management Data Entry of Income and Expense Forms

Samuel
Download Presentation

INCOME AND EXPENSE PROCESS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INCOME AND EXPENSE PROCESS Presented by Michael Tarello, MAI, ASA Vision Appraisal Technology & James McCathern, CEO Patriot Properties May 21, 2008

  2. INCOME AND EXPENSE PROCEDURES • Income and Expense Management • Data Entry of Income and Expense Forms • Analysis of Actual Income, Expenses, Vacancies and Capitalization Rates • Develop Market Rates • Reconciliation Process

  3. INCOME AND EXPENSE MANAGEMENT • Mail Forms Out by First of February • Types of Forms • DOR Suggested Forms • Vendor Form • Town Created Forms • General Form, Specialized Form or a Combination of Both • Use Forms that meets Towns Requirements and Gives the best fit to the CAMA product being Utilized

  4. INCOME AND EXPENSE MANAGEMENT • When do you Have Enough Supporting Data • Second Mailer to Specific Properties • Gather I/E Info from Neighboring Towns • Specialized Properties • Nursing Home Forms, Hotel/Motel Financials, Cell Tower Leases, Mobile Home Park Rents

  5. DATA ENTRY OF I & E FORMS • Sort Through Usable and Owner Occupied • Organize by Property Type • Same Thought Process • Do’s and Don’ts • Determine Type of Lease • Expense Ratios

  6. ANALYSIS OF ACTUAL INCOME • Categorize Income & Expense Data by Use (Office, Retail etc…) • New Leases To Old Leases or Step Ups • Identify Outliers for Rental Rates, Expense Ratios and Vacancy Rates • Determine Location and Utility Adjustments for each Properties Rental Rate

  7. SET MARKET RATES • Using Actual Income and Expense Data to Set Standard Rates Per Use • Creating Rental Parameters Based on Size or a Set Unit • Determining Adjustments from the Market for Various Elements that Effect Value • These Elements are Location, Utility, Quality of Expense Ratios, Vacancy Rates and Risk Factors of Cap Rates • Sample Reports, Actual Data and Market Rent Schedules

  8. RECONCILIATION PROCESS • Create an Income/Cost Report by Use • Reconcile the Properties by Use to Ensure Equitable Values Per Unit of Comparison, based on Location and Utility • Once Complete, Review Values Looking for Outliers • Rely on the Old to New Report and the Value per SF Spread Sheet Sorted by Use

More Related