When dealing with transactions with free rent, it is not uncommon to hear some say that the free rent is INSIDE or OUTSIDE the term. How you enter your abated rent in Realcore depends on these situations. It can affect your term length, escalation date, as well as the total value of your transaction.
For example, a 5 year lease with 2 months of free rent...what exactly does this mean? Is it 2 months + a 5 year lease, which is a 60 month term, with rent paid for 58 months? Then after the free rent, how do the lease years fall?
Understanding the difference, and how Realcore handles abatement will save you time and money with your rent schedule adjustments. If you use the abatement field on the dates and terms page to generate your rent schedule, Realcore is going to place your free rent OUTSIDE the term. Here is an example:
But if your rent should fall INSIDE the term, you can bypass the abatement field, and add it directly in to the schedule, like this:
Do you see the difference? Hopefully, this helpful hint will be useful the next time you are entering free rent. As always, if you have any questions, please reach out to us at support@realcoreapps.com.