21 - [04] BTR_Units

Summary:

  • :clipboard: Introduction to Build-to-Rent (BTR) Units:
    • Discusses the concept of Build-to-Rent (BTR) units, which involves constructing properties specifically for rental rather than sale.
    • Highlights the importance of managing construction costs and allocating costs per square meter or unit.
  • :bar_chart: Metrics for Efficiency and Rentable Area:
    • Emphasis on calculating average total built area per unit and average net rentable area per unit.
    • The difference between built area and rentable area determines efficiency, helping assess profitability.
  • :abacus: Dynamic Cost Management in Dashboards:
    • Explanation of using a dashboard to input and edit construction costs, gross rent, and other variables.
    • Customization options include formula edits to streamline calculations across units.
  • :earth_africa: Tax Considerations (GST):
    • Details the impact of Goods and Services Tax (GST) on rent for certain regions outside the U.S.
    • Clarifies how GST calculations are integrated into cash flow projections for commercial units.
  • :floppy_disk: Flexible Data Management:
    • Highlights the flexibility to modify construction costs per unit or square meter for real-time updates.
    • Notes that data can be adjusted based on project-specific requirements.
  • :key: Summary Metrics on Build-to-Rent Projects:
    • Overview of summary metrics such as total built area, net rentable area, construction cost, and land value.
    • Explanation of how percentages (e.g., 90% efficiency) are used for concise reporting.

Insights Based on Numbers:

  • :building_construction: Efficiency Metrics:
    • Built area efficiency is typically rounded for simplicity, e.g., 89.5% rounded to 90%.
  • :moneybag: Cost Allocation:
    • Detailed tracking of construction costs, such as GST inclusion/exclusion, enhances financial clarity.