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South Central IL |
I've been playing around in Excel and came up with an easy formula. Base equals whatever you want, I would use 5 year average.
Actual Yield (AY) divided by base (BY) equals Yield Factor (YF).
Actual Price (AP) divided by base price (BP) equals Price Factor (PF).
Add the two factors together, divide by 5 then multiply by 2.75. Multiply the sum by minimum cash rent and you have adjusted cash rent.
AY/BY=YF
AP/BP=PF
(YF+PF)/5*2.75=Total Factor
Base Cash Rent =$100 x Total Factor=Adjusted Rent
It is easier in Excel than it appears here. Each cell can be adjusted for yield, price, factor and rent base price.
Please let me know what you think. Email me and I can send you the excel document. | |
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Variable cash rent
