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Related Topics Organizing for CompliancePerformance TrackingYear 15
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Reserves and Cash Flow Analysis
One element of Good Asset Management Practice is periodic evaluation of adequacy of reserves. After five to ten years of operation it is not unusual to have reserve balances well below the level projected in the original pro-forma. This downloadable Excel spreadsheet workbook created by Chuck Gallo combines a simple reserves analysis with an analysis of current tenant incomes, rent levels and rent limits and an operating cash flow projection. The reserves analysis shows how much additional contribution is needed to keep the reserves positive for the time-frame you want. The incomes and rents analysis lets you test different strategies to phase in rent increases and to vary rent increases based on resident income. The cash flow projection shows the result of your changes in reserve contributions and rents in an updated operating pro-forma sheet. To download the workbook click on "Reserves and Cash Flow Analysis".
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