Understanding Assumption Header Information
Set up assumption header information such as new and renewal market rates, new and renewal consumer price index (CPI) rates, rent step rates, growth pattern codes, and bill codes in the AREF Unit Assumptions program (P15L102). You can also set up miscellaneous information that includes the months of free rent and the associated bill code to use to post the amount, the renewal probability, and the downtime, or expected duration of vacancy, of the unit.
Although you can specify the term of the both new and renewal assumptions, you enter the effective dates for the assumption in the Budget Start Period and Budget Start Fiscal Year processing options of the AREF Budget Calculation program (R15L1091). For example, if you enter the budget start period as 01, the budget start fiscal year as 07, and you set up the assumption for a new or renewal term of four years, then the effective dates for the assumption are 01/01/07 through 12/31/11. If you do not specify a new or renewal term on the assumption, the assumption is effective throughout the years in which the budget is forecast.
When the assumption is in effect, the system calculates the forecasted rent amount for the unit by multiplying the unit area by either the market or CPI rate, which represents an amount per square foot, and then applying the growth pattern. The system updates the result to the account represented by the associated bill code.