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From: Jenny F
Ian,
Hope you can advise me how the Rental Yield numbers are calculated in PIA. The thing I need to know is, if you vary the vacancy rate, does PIA take into account an increased number of letting fees (ie a number of discontinuous tenancies in a year) or does it assume a single period of occupancy followed by a single period of vacancy for a given vacancy rate (ie generating only one letting fee per year).
I started using the PIA yield figures to do a sensitivity analysis of rent vs vacancy rates for multiple rent values. It suddenly occurred to me that PIA may not be accounting for increased letting fees when you have "stop-start" tenancies as your vacancy rate rises.
Thanks
JMF
Ian,
Hope you can advise me how the Rental Yield numbers are calculated in PIA. The thing I need to know is, if you vary the vacancy rate, does PIA take into account an increased number of letting fees (ie a number of discontinuous tenancies in a year) or does it assume a single period of occupancy followed by a single period of vacancy for a given vacancy rate (ie generating only one letting fee per year).
I started using the PIA yield figures to do a sensitivity analysis of rent vs vacancy rates for multiple rent values. It suddenly occurred to me that PIA may not be accounting for increased letting fees when you have "stop-start" tenancies as your vacancy rate rises.
Thanks
JMF
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