Days to available
What is it?
The key figure shows the average remaining period of time until a rental property becomes available, which occurs when the lock-in end date or the terminated rental property's contract end is reached. In other words, it provides an estimate of the number of days remaining before the rental property may become vacant and not generate rental income.
This key figure provides insights into the management of blocked or terminated rental properties and facilitates financial planning to minimize potential loss of rental income in the future.
How is it calculated?
Block or contract end date - today's date = Number of days
* Includes only rentals that have a end-date for a block or end-date for its contract.
Why is it important to follow?
Following the key figure is important for several reasons:
Revenue planning: It gives the organization the ability to anticipate and plan for the expected period of time without rental income from blocked or terminated rental properties. It is valuable for making realistic financial forecasts and managing liquidity.
Leasing strategy: The key figure provides insights into how quickly the organization needs to act, and how long they have, to find new tenants for their (currently) blocked or terminated rental properties in order not to lose potential revenue.
Risk management: By having an idea of the expected vacancy period, the organization can take steps to minimize potential loss of rental income, such as speeding up renovations or intensifying marketing efforts.
Decision-making: The information is useful for making decisions about prioritizing certain blocked tenancies or renegotiating contracts with terminated tenants to shorten the vacancy period.
Effectiveness: It can be used to evaluate how the organization handles the transition from unavailable to rentable condition and whether there is room for improvement.
In summary, the key figure gives the organization an understanding of the length of the vacancy period and provides the opportunity to plan, manage risks and optimize the letting of blocked or terminated rental properties to minimize revenue losses. It is a valuable tool for property management and financial planning.
Created by Homepal
10/31/2023
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