Why Does the Year 1 Rental Income in My Investment Analysis Report Not Match My Excel Spreadsheet?

TheAnalyst PRO uses advanced algorithms to provide a more intelligent and precise investment analysis compared to basic Excel models. One key difference is how rental income is calculated in Year 1 of your report.

Key Factors Affecting Year 1 Rental Income in TheAnalyst PRO:

1. Purchase Date Timing: The year 1 rental income calculation takes into account the exact purchase date you entered in the Property Details section. This means rental income for Year 1 may be prorated based on when ownership begins within the year.

2. Rent Escalations & Timing: TheAnalyst PRO factors in each tenant’s rent escalation schedule, including the date of the increase, ensuring a more accurate projection of rental income. Excel typically calculates income based on current rent levels without considering mid-year escalations.

3. Multi-Tenant Variability: If your property has multiple tenants with different lease start dates and escalation schedules, TheAnalyst PRO automatically adjusts for staggered rent changes throughout the year, which may lead to variations compared to a simplified Excel projection.

How Can I Ensure My Rental Income Calculation is Accurate?

• Double-check that the purchase date in the Property Details section matches your intended ownership start date.

• Review each tenant’s lease details to confirm rent escalation dates and amounts are correctly entered.

• Compare your Excel calculation to TheAnalyst PRO by manually adjusting for mid-year
escalations and prorated rental periods to see how they align.

TheAnalyst PRO’s intelligent approach provides a more realistic and data-driven income projection than a simple Excel formula, helping you make more informed investment decisions.