From an operational basis FOM makes perfect sense. From a cash flow analysis it is much easier to know the capital requirements for any given month. However.... from an NOI stand point prorating move ins gives up a lot of capital month after month. If you move in 50 units for an average of $100 per, and waive an average of 10 days due to pro rate, that is approx $1666 in unrealized rent per month, annualized to $19,992. And, at an 8 cap that is $249,990 in asset value.
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