Annual rent for contracts
What is it?
The key figure provides a quick and aggregated overview of the total annual rental income from ongoing leases at a specified time. It offers insights into the financial performance of properties or areas, and provides a basis for budget planning and long-term investment decisions.
How is it calculated?
Annual rent totaled for active contracts
* Includes only those contracts where the start and end dates are on each side of the specified time. ** If a time period is selected, this KPI always shows the last day of the period (except if it is in the future; then today is shown).
Why is it important to follow?
Tracking the KPI is important for the following reasons:
Revenue analysis: The key figure provides a central indication of the annual revenue from ongoing leases. It is critical in assessing the property's financial performance and revenue stream.
Budget planning: By having insights into the expected annual rental income, property owners and managers can effectively plan and budget for operating expenses and future investments.
Financial strategy: For property owners and investors, the ratio is an important factor when designing overall financial strategies and goals. It gives a clear picture of the financial health of the property.
Investment decisions: For potential investors, this key figure is a central factor when deciding on the acquisition or disposal of real estate. The annual rental income directly affects the property's value and yield.
Comparisons over time: Following the key figures over different periods enables comparisons and the identification of trends. It provides insights into how rental income develops over time.
In summary, the KPI provides an overall picture of the property's financial performance and is a fundamental factor for strategic planning, investment decisions and risk management.
Created by Homepal
1/25/2024
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