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Straight-Line Rent Report

Using straight-line accounting, the revenue from base rent recurring costs is accounted for evenly over the life of the lease. This means that the rent the tenant pays (or the landlord receives) is averaged over the life of the lease, and this average is used for accounting purposes, rather than the amount that is actually paid for any reported time period. The difference between the straight line rent the system calculates and the actual rent that is paid or received is reported in the Straight-Line Rent Differential.

The Straight-Line Rent report adds the rent amounts for the entire lease term, and then divides the sum by the number of months in the lease term.

The straight line rent is calculated at the beginning of the lease for the entire term of the lease agreement. If base rent is paid quarterly, then the straight-line rent is displayed as even monthly payments.

The Straight-Line Rent Report shows the straight-line rent values that the application calculates based on the base rent cost records you enter for the lease's term. The report uses recurring, scheduled, or actual costs, depending on your selection in the Filter console.

Click on a lease code or rent amount, and the report shows the Details tab for the lease. The Details tab shows Straight Line Rent versus Actual Rent paid with Differentials for the entire time period.

The Details tab shows the following data:

	Data	Formula	Description
A	Base Rent		Base rent for the reporting time period (typically grouped per month)
B	Leasehold Improvement Credit		The credit for leasehold improvement
C	Actual Rent	(A + B)	Tenant Actual Rent Paid
D	Straight-Line Rent		Straight-line rent calculated as: Cumulative Base Rent / number of payments for the lease term
E	Differential	(C - D)	Tenant Actual Rent Paid - Straight- Line rent
F	Cumulative Differential		Differential x No. of Payments for the selected time period