Percentage rent is base rent plus a share of the tenant's sales above an agreed threshold called the breakpoint. The formula is simple: (gross sales − breakpoint) × percentage rate. If sales never cross the breakpoint, percentage rent is zero and the tenant pays base rent only. Almost every dispute about percentage rent is really a dispute about one of the three inputs. That's the whole calculation. The rest of this post is about the inputs, because that's where the money moves. How to calculate percentage rent in four steps Confirm the base rent and the percentage rate in the lease. Both are fixed at signing; base rent usually escalates, which matters later. Find the breakpoint. If the lease doesn't state one, it's the natural breakpoint: base rent ÷ percentage rate. Subtract the breakpoint from reported gross sales for the period. If the result is negative, percentage rent is zero. Multiply the excess by the percentage rate. Bill it, then reconcile against certified annual sales. ...

Every manufactured housing value-add deck has the same slide: buy the community, sell the park-owned homes to residents, convert home rent into lot rent, exit at a better multiple. The strategy is so standard that industry voices like The MHP Broker debate it as a matter of course. What no deck shows is what the conversion looks like in the books. A home you own becomes a home a resident owns — and if your ledger doesn't record that event correctly, the gains are wrong, the balance sheet is stale, and three years of "successful conversions" become a cleanup project the week a buyer's accountant shows up. This is the ledger side: the three ways a conversion sells, what each posts in NetSuite, and how the homesite's billing flips the day title changes hands. Key takeaways A conversion is a disposal event: the home's cost and accumulated depreciation come off the balance sheet, gain or loss is recognized against net book value, and the homesite reclassifies to lot-rent-only billing. The ...

Property accounting has a reputation for being hard, and it is not because the accounting is exotic. Rent is revenue, a deposit is a liability, a roof is an asset. It is hard because the same small set of entries repeats across hundreds of tenants, dozens of properties and a dozen legal entities every month, and because half of what a lender or an investor asks for (NOI by property, recoveries versus recoverable expenses, occupancy alongside revenue) is not a standard financial statement. NetSuite is a good place to do it. You manage property accounting in NetSuite by making the property a dimension on every transaction, letting the operating records (leases, invoices, work orders, vendor bills) generate the postings rather than journaling them, and using OneWorld to hold each owning entity as a subsidiary. What NetSuite does not supply is the operating layer that creates those postings; that comes from a property management platform such as RIOO, built on NetSuite, or from custom ...

Most property accounting systems were built around a single assumption: one physical space, one lease, one revenue stream, one asset. A manufactured housing community breaks that assumption on day one. The land under a home and the home sitting on it are two different things — often owned by two different parties, financed under two different instruments, taxed under two different regimes, and, when the community owns the home, recorded in two different places on the same balance sheet. That is not a reporting preference. It is what your lender's servicing guide asks for, what your auditor tests, and what the accounting standards require you to disaggregate. A community that runs its books in software designed for apartments will produce numbers that look fine internally and then fall apart the first time a Freddie Mac or Fannie Mae asset manager asks for a rent schedule that separates homesite rent from home rent within a stated tolerance. This article is about system requirements, ...

Ask a manufactured housing resident how they financed their home, and the answer sorts them into one of two financial lives. One path looks like a mortgage — 30-year term, competitive rate, real consumer protections. The other looks like an auto loan — shorter term, a rate that runs two to three points higher, and a lender who can take the collateral back with far less friction than a foreclosure. Which path a resident is on is not a footnote for a community operator. It shapes how easily a home can resell inside your park, how exposed you are if that resident defaults, and how much of your rent roll sits behind financing that was never designed to be affordable in the first place. An analysis using Home Mortgage Disclosure Act data found that around 42% of manufactured home purchases are financed with chattel loans — loans secured by the home itself rather than the land beneath it — and that chattel borrowers face meaningfully higher rates and fewer protections than mortgage ...

A park-owned home is the only asset in a manufactured housing community that has to be right in four places at once: the fixed asset register, the rent roll, the tax return and the title file. Most operators get two of the four. The reason is not carelessness. It is that a rented manufactured home does not behave like anything else on the balance sheet. Federal tax calls it a building. Your state DMV calls it a vehicle. It costs $35,000, depreciates over 27.5 years, and can be towed away in an afternoon. Its rehab spend splits between repair and capital on rules written for office towers. And when you finally sell it to the resident living in it, where the gain lands depends on a decision you made when you bought it. This guide covers what actually goes into the home's basis, how the depreciation schedule is built, which rehab dollars capitalise and which do not, the disposal mechanics for all three exit routes, and the journal entries behind each. This is general information, not tax ...

Almost every property accounting system in existence models the world the same way: a unit, a lease, a tenant, a rent roll. That model works for apartments, offices and retail because in all three the landlord owns the thing being occupied. A manufactured housing community does not work that way. It is two overlapping registers — homesites you lease out, and homes you may or may not own — and the second register behaves nothing like the first. It has book value, a depreciation schedule, inventory, sales revenue, cost of goods sold, and eventually a disposal. It is a different business, sharing a balance sheet with a land business. This guide covers how the two registers actually work, the four different accounting rulebooks that apply to your revenue, why a park-owned home is three different assets depending on what you plan to do with it, the depreciation and seller-financing traps that catch operators, and what any of it means for the system you run it all in. Key takeaways An MH ...

Rent collection in Dubai isn't a monthly event — it's a calendar of future promises. Most tenancies still begin with 1–4 post-dated cheques changing hands, which means rent collection in Dubai is really the management of paper obligations with future dates: knowing what's due for deposit this week, catching what bounced, and acting fast when it does. Here's the full collection playbook — including what the law now actually says when a cheque bounces, because it changed, and half the advice online hasn't caught up. Key Takeaways Dubai rent runs on post-dated cheques (1–4 per year is standard) with digital payments growing alongside — your collection process must run both. Bounced cheques were decriminalised for most cases: no more police-case-by-default. Instead, the cheque became a directly enforceable instrument — often a faster route to the money than the old criminal complaint. The landlord's real leverage on unpaid rent is the tenancy law's 30-day notice path — miss the procedure ...

The tenancy ends, the keys go back — and then the deposit conversation begins, which is where more Dubai tenancies turn sour than at any other moment. Quick answer: In Dubai, the landlord must return the security deposit refund at the end of the tenancy, less lawful deductions for damage beyond fair wear and tear and unpaid amounts. The law sets no fixed refund deadline — timing follows the contract or agreement, with 14–30 days common practice. Deductions must be justifiable; disputes go to the Rental Dispute Center. Here's what can lawfully be deducted, what can't, and what to do when the refund stalls. The deposit itself: what's normal in Dubai Convention, not statute: 5% of annual rent for unfurnished units and 10% for furnished — held by the landlord or their management company for the tenancy's duration. The obligation to refund comes from Law No. 26 of 2007; the practical mechanics (how much, when, against what conditions) live in your tenancy contract, which is why the ...

When a property company approves an AI budget, everyone in the room is picturing the same thing: the AI. The model, the capability, the impressive output from the demo. That is what the line item says, and that is what the money feels like it is buying. Then the project starts, and the invoices tell a different story. The model turns out to be one of the smallest costs in the whole effort. Most of the budget goes somewhere nobody was looking, into the unglamorous work of getting the business ready for the AI to function at all. This is the surprise that catches CFOs, and it is a structural one, not a case of a single project going wrong. Across the industry, the model is roughly a third of the total bill. The rest, the majority, goes to data preparation, integration, and the ongoing operational work of keeping the thing running. As one industry cost analysis puts it plainly, the biggest variables are data readiness, integration work, and infrastructure, not the AI technology itself. ...