Cost Efficiency Analysis
Definition
Cost efficiency analysis
Use
Covering costs of real estate
The master record of the cost efficiency analysis forms the basis for determining the cost rent relevant to your real estate portfolio.
For selected rental units of a business entity (BE) or for the entire business entity, the system determines if the current rent covers the costs by comparing expenses and revenues (time-dependently).
Calculating expense
The system calculates the expense on the basis of the data entered in the financing plan and the current expenses; the expense calculation takes account of:
Time-dependent factors
Financing type or expense type (you define these details yourself)
Distribution keys (also user-defined)
Passing on expenses
These expenses form the basis for the rent adjustment. You can:
Change the amounts
Determine which amount is used for the rent adjustment
Structure
A cost efficiency analysis (CEA) consists of a main cost efficiency analysis (MCEA) and a partial cost efficiency analysis (PCEA).
You use the PCEA to map different usage categories of the MCEA. For example, you can divide your entire real estate portfolio in the MCEA into "privately financed" or "publicly subsidized" to allow you to calculate the expense based on different data.
You create an additional calculation if additional costs are incurred for a partial cost efficiency analysis for which authorization has already been given. The PCEA and the additional calculation are the final valid calculation basis for adjusting the rent of your real estate portfolio.
Layout
The layout of a PCEA or additional calculation is adapted to the requirements of the
Calculation Regulations
(German law) with regard to the following factors:
Total costs
Financing plan
Current expenses and revenues
The system automatically checks if the amounts entered in the financing plan match the total costs for each specified time.
Integration
Rental unit / lease-out
You assign participating rental units to the PCEA or additional calculation by specifying their area factors.
You can define your own criteria to determine how an assigned rental unit participates in the cost efficiency analysis.
For example, you can exempt rental units assigned to the PCEA from the CEA (= no rent adjustment) although current expenses are incurred on them; in this case the system apportions the current expenses of these particular rental units to the other rental units participating in the CEA.