1.Distribute Value #

1.1.Configuring the Distribute Values Reason #

Purpose

Use this procedure to require a reason for distributing values on a property. By default, the system does not require that a reason be given.

Procedure

  1. In PACS.ADMIN, select Tools > System Configuration > Properties > Distribute Values.

    Distribute Value, system config

  2. Set Require Distribute Values Reason to True.
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Last updated on June 11, 2021

1.2.Distributing Values #

Purpose

Use this procedure to distribute values.

With this feature, you can override the current system value without losing other valuation methods.

Prerequisites

  • In order to perform this procedure, the following user right is required:
    • Property > Edit Property > Value Summary > Distribute Value
  • If a distribute value reason is required, it has been set up in PACS.ADMIN (Tools > System Configuration > Properties > Distribute Values). For more information see Configuring the Distribute Values Reason.

Procedure

  1. Open a property record. Expand the Values panel and click Distribute Value.

    distribute value, 9032x

  2. In the Value to Distribute field in the Distribute Value dialog box, enter the amount to be distributed.
  3. In the Segment Information section, select the segment to which the value is to be distributed.
  4. Select one of the following options:
    • Distribute Manually

      When selected, you can select Override and then enter specific amounts for improvement segments or land segments in the Distributed Value column. By using this option, you can manually distribute the total amount to each segment. The amounts you enter must add up to the total value in the Value to Distribute field at the top of the dialog box.

    • Distribute Zero Value

      Distributes a segment with zero value for personal property records that are recorded as zero value in protest processing.

    • Distribute Value Proportionally

      Distributes the value specified to all segments.

    • Distribute Value – Retain Land Value

      Distribute Value minus Land Value. Retains the land value and distributes the remaining value to the improvements by percentage.

    • Distribute, Set Land, % Improvement

      Distributes the value by percentage to the segments other than the land, and allows you to enter the land value in the New Land Value field.

  5. If a reason is required, choose a reason from the Reason drop-down list.
  6. Click Distribute.
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Last updated on June 11, 2021

2.Income Value #

With PACS 9.0 income valuation features, you can value properties using the income approach.

The income approach involves taking the potential income from the subject property, less appropriate expenses, and capitalizing the income to arrive at an estimated value for the property.

Before using income valuation features, you must first set up:

  • Income approach codes in Code File Maintenance
  • Income schedules
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Last updated on January 11, 2019

2.1.Maintaining Income Approach Codes #

Purpose

Use this procedure to add, modify, or remove the following codes for use in income valuation processing:

  • Amenities Code

    Codes that represent amenities such as a pool, tennis court, laundry, and so on.

  • Class

    A way of grouping properties in order to compare like properties, for example: Class A – Office, Class B – Office, Class A – Retail, Class A – In-House Properties, and so on.

  • Economic Area

    An area in which similar types of properties react in a similar way to economic influences acting upon the properties within it.

  • Expense Structure

    Defines expenses in the income analysis, such as full service with base year or full service with pass through.

  • Income Characteristics Baths Code

    The number of baths in a multi-family unit.

  • Income Characteristics Style Code

    The style of an item within a multi-family unit.

  • Income Unit Type Code

    The type of unit (such as a two-bedroom unit with a loft, a double garage, and so on) within a multi-family structure.

  • Lease Type

    The type of lease such as triple net lease, full service lease, or industrial gross lease.

  • Level

    A categorization of properties that is customizable according to the requirements of your appraisal office. Some offices use simple names for the levels, such as Level 1 or Level 2.

  • Miscellaneous Expense Code

    Codes for miscellaneous expenses such as electrical and plumbing services.

  • Miscellaneous Income Code

    Codes for miscellaneous income such as parking, vending, and laundry.

  • Property Type

    Used in conjunction with Class to group properties for comparison. Examples of property type codes are: retail, apartments, or offices.

  • Rent Type

    The type of rent, such as contract rent or market rent.

Prerequisites

  • In order to perform this procedure, select user rights as required under the Codefile Maintenance > Income Codes category.
  • Property codes (residential, commercial, multi-family) have been set up as required in PACS.ADMIN.

Procedure

  1. In PACS.ADMIN, choose Tools > Code File Maintenance.
  2. In the Income section, select one of the income approach codes listed above.
  3. In the dialog box that opens for the code, use one of the following options:
    • Click Add  to create a new code and complete the Code and Description fields in the Column Details section.
    • Highlight a code and click Edit to edit the code details.
    • Highlight a code and click Delete  to delete the code.
  4. Click Save to save any changes.
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Last updated on January 11, 2019

2.2.Creating Income Schedules #

Purpose

Use the income schedule to set up income and expense data that can be applied to an income valuation based on:

  • Year
  • Property type
  • Class
  • Economic Area
  • Level

Income, Income Schedule Maintenance (Prop Level), TrNet, 9031x

When an income valuation contains data that matches data contained in an income schedule for the fields above, you can select the schedule and apply it to the income valuation.

When a schedule is applied to the income valuation, the schedule’s income and expense data is applied to the income valuation.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Edit Income Schedule
    • Income Schedule Maintenance
  • Income approach codes have been set up. For more information, see Maintaining Income Approach Codes.

Procedure

  1. In PACS.ADMIN, choose Tools > Schedule Maintenance > Income > Income Schedule Maintenance.
  2. In the Income Schedules window, click New.
  3. In the Income Schedule dialog box, complete the following header information:
    • Year
    • Property Type

      The type of property, such as real, personal, auto, mobile home, or mineral.

    • Class

      A way of grouping properties in order to compare like properties, for example: Class A – Office, Class B – Office, Class A – Retail, Class A – In-House Properties, and so on.

    • Economic Area

      An area in which similar types of properties react in a similar way to economic influences acting upon the properties within it.

    • Level.

      A categorization of properties that is customizable according to the requirements of your appraisal office. Some offices use simple names for the levels, such as Level 1 or Level 2.

  4. To set the Property Tax Rate to zero for this schedule, select Do Not Use Tax Rate in Overall Rate.
  5. To prevent the system from adding the Levy rate to the Cap Rate, select Triple Net Schedule.

    Note Choosing Triple Net Schedule results in the Override option being automatically selected at the property schedule level, setting taxes to zero.

  6. Complete the following income information:
    • Lease Rate ($)

      The dollar per square foot amount with which the schedule derives rent income.

    • Occupancy Rate (%)

      The normal percentage rate at which the property is leased. The system uses this rate to arrive at the vacancy rate. For example, if the property has a 90% occupancy rate, the system determines the vacancy rate to be 10%.

    • Secondary Income RSF ($)

      The per square foot of secondary income that is produced annually.

    • Cap Rate (%)

      The capitalization rate.

  7. Complete the following expense information:
    • Expense RSF ($)

      The dollar amount of expense per rentable square foot.

    • Tenant Improv Rate (%)

      The percentage of effective gross income that the lessor allows for tenant improvements.

    • Reserve for Replacement Rate (%)

      The effective gross income percentage reserved to replace short-lived property items.

    • Management Rate (%)

      The percentage paid to the property management company.

  8. Click Apply or OK.

    Note After an income schedule is created, you can use the Change Log button in the Income Schedule dialog box to review a history of changes to the schedule.

  9. After an income schedule is created, use the following options as required in the Income Schedule window:
    • To view the details of existing income schedules, highlight the schedule and click Details.
    • To create a copy of an existing scheduled, highlight the schedule and click Create Copy.
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Last updated on June 11, 2021

2.3.Creating an Income Improvement Detail Matrix #

Purpose

Use this procedure to create am income improvement detail matrix schedule for calculating the value of improvement detail characteristics.

Prerequisite

  • In order to perform this procedure, the following user rights are required:
    • Edit Income Schedule
    • Income Schedule Maintenance

Procedure

  1. In PACS.ADMIN, choose Tools > Schedule Maintenance > Matrix Maintenance > Income Improvement Detail.
  2. In the Matrix Maintenance Income Improvement Detail window, select the year for which the matrix schedule is active.
  3. Click Add.

    Income Improv Detail Matrix Add

  4. In the Matrix Maintenance Detail Dialog box, use the Sub Type field to select the income field to which the matrix applies.

    Improv Detail Schedule Matrix Maintenance Detail

  5. Enter a description for the matrix in the Description field.
  6. Make the following selections:
    • Label

      Select either Base Rate (BR) or Modifier (Mod).

    • Operator

      The mathematical function.

  7. Select the axes in the Axis 1 and Axis 2 drop-down lists. To set the value for each each axis, click Data Type and do the following:
    1. Click Add and enter or select the associated value(s) in the Matrix Axis Detail dialog box.

      Improv_Detail_Matrix_Axis_Detail

    2. Click OK.
  8. In the Matrix Maintenance Detail Dialog box, enter the Default Cell Value as required.
  9. To estimate the value, select Interpolate.
  10. To modify a single value, select the cell and enter the desired value. To set the cell value to the value displayed in the Default Cell Value field, select the cell or cells and click Set Selected Cell Values.
  11. To print the matrix data in a report, click Print.
  12. Click OK or Apply.
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Last updated on June 11, 2021

2.4.Creating Income Improvement Detail Schedules #

Purpose

Use this procedure to create an income improvement detail schedule with income and expense data that can be applied to an income valuation based on:

  • Year
  • Neighborhood Code
  • Improvement Detail Type
  • Improvement Detail Method

When an income valuation contains data that matches data contained in an income schedule for the fields above, you can select the schedule and apply it to the income valuation.

When a schedule is applied to the income valuation, the schedule’s income and expense data is applied to the income valuation.

Prerequisite

  • In order to perform this procedure, the following user rights are required:
    • Edit Income Schedule
    • Income Schedule Maintenance
  • If you are going to apply an improvement matrix, the matrix has already been set up in PACS.ADMIN (Tools > Schedule Maintenance > Matrix Maintenance > Income Improvement Detail).

Procedure

  1. In PACS.ADMIN, choose Tools > Schedule Maintenance > Income > Income Schedule Improvement Detail Maintenance.
  2. In the Income Schedule Improvement Detail Maintenance window, select the year for which the schedule is active and click Add.Add

    Income Schedule Improvement Detail Maintenance

  3. In the General section of the Income Schedule Improvement Detail Maintenance Detail Dialog box, make the following selections:

    Income, Schedule, Improv Detail Maint Detail, 9031x

    • Year

      The year layer for the schedule.

    • Neighborhood Code

      The neighborhood code of the property.

    • Imprv Detail Type

      The type code assigned to the improvement detail.

    • Imprv Detail Method

      The method code assigned to the improvement detail.

  4. If you want to use a matrix, select Use Matrices and proceed to the next numbered step. Otherwise, do the following:
    1. In the Income Information section, enter the following values:
      • Rent Rate

        The dollar amount paid for the occupancy and use of real property.

      • Occupancy Rate

        The normal percentage rate at which the property is leased. The system uses this rate to arrive at the vacancy rate. For example, if the property has a 90% occupancy rate, the system determines the vacancy rate to be 10%.

      • Secondary Income RSF

        The per square foot of secondary income that is produced annually.

      • Cap Rate

        The capitalization rate.

      • Collection Loss

        The percentage of rent considered uncollectible.

    2. In the Expenses Information section, enter values for one of the following:
      • Expense RSF

        The dollar amount of expense per rentable square foot.

      • Expense Ratio

        Operating Expenses divided by Potential Gross Income.

    3. To set the Property Tax Rate to zero for this schedule, select Do Not Use Tax Rate in Overall Rate.
  5. If you selected Use Matrices, do the following:
    • To set the Property Tax Rate to zero for this matrix schedule, select Do Not Use Tax Rate in Overall Rate.
    • To add a matrix to the schedule, click Add  in the Matrix Information grid and select a preconfigured matrix.
    • To view the details of a matrix, highlight the matrix and click Details. To remove a matrix from the schedule click Delete.
    • To change the order of matrices, select the matrix name and click Move Up or Move Down.
  6. To view the schedule history, click Change Log.
  7. If you are using a matrix and want to view the matrix, click Matrices…

    Note Once a schedule is saved the Use Matrices option can not be selected or deselected again.

  8. Click Apply or OK.
  9. After an income schedule is created, use the following options as required in the Income Schedule Improvement Detail Maintenance window:
    • To view a schedule, select the schedule and click Details.
    • To delete a schedule, click Delete.
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Last updated on June 11, 2021

2.5.Creating Income GRM/GIM Schedules #

Purpose

Use this procedure to create a GRM/GIM schedule to determine the value of properties that generate income through unit rentals.

The income GRM/GIM schedule applies annual and monthly potential gross income, the gross income multiplier, and the gross rent multiplier to an income valuation based on:

  • Year
  • Property Type
  • Income Class
  • Economic Area
  • Income Level

When an income valuation contains data that matches data contained in an income schedule for the fields above, you can select the schedule and apply it to the income valuation.

When a schedule is applied to the income valuation, the schedule’s income and expense data is applied to the income valuation.

Prerequisite

  • In order to perform this procedure, the following user rights are required:
    • Edit Income Schedule
    • Income Schedule Maintenance

Procedure

  1. In PACS.ADMIN, choose Tools > Schedule Maintenance > Income > Income GRM/GIM Schedule Maintenance.
  2. In the Income Schedule Improvement Detail Maintenance window, select the year for which the income schedule is active.
  3. Click Add.

    Income Schedule, GRMGIM window

  4. In the General section of the Income GRM/GIM Schedule dialog box, make the following selections:

    Income Schedule GRMGIM, general dialog

    • Year

      The year layer for the schedule.

    • Property Type

      The property type the schedule applies to.

    • Income Class

      The income class the schedule applies to.

    • Economic Area

      The economic area the schedule applies to.

    • Income Level

      The income level the schedule applies to.

  5. Then, in the Details section, enter one of the following pairs of values:
    • Potential Gross Income – Annual

      The yearly amount of income that could be produced by a real property assuming no vacancies or collection losses. This does not include miscellaneous income.

    • Gross Income Multiplier (GIM)

      The ratio of the price of a real estate investment to its annual income, including non-rental income, before expenses: Gross Income Multiplier (GRM) = Sale Price / Potential Gross Income

    or

    • Potential Gross Income – Monthly

      The monthly amount of income that could be produced by a real property assuming no vacancies or collection losses. This does not include miscellaneous income.

    • Gross Rent Multiplier (GRM)

      The ratio of the price of a real estate investment to its annual rental income before expenses: Gross Rent Multiplier (GRM) = Sale Price / Potential Gross Income

  6. To view the history of the schedule, click Change Log.
  7. Click OK or Apply.
  8. After an income schedule is created, use the following options as required in the Income GRM/GIM Schedule window:
    • To view a schedule, select the schedule and click Details.
    • To delete a schedule, click Delete.
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Last updated on June 11, 2021

2.6.Maintaining Income Valuations #

Purpose

Use this procedure to add, change, display, or copy income valuations.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation

Procedure

  1. In PACS 9.0, open a property, then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuations section, use the following options as required:
    • To add an income valuation, click Add . Then proceed with the Creating Income Valuations instructions.
    • To review an income valuation, select it and click Details .
    • To remove an income valuation, select it and click Remove .
    • To copy an income valuation, select it and click Create Copy.

      Note: The Create Copy feature is useful for reviewing the impact of a change (such as a change suggested by a taxpayer), and for ARB purposes.

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Last updated on January 11, 2019

2.7.Creating Income Valuations #

Use these procedures to enter data in each of the income valuation windows.

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Last updated on January 11, 2019

2.7.1.Entering Income Valuation and Lease Data #

Purpose

Use this procedure to enter general data for an income valuation.

If income and expense data will be applied to this income valuation from an income schedule, note that the data you enter in the following fields must match the data in the corresponding fields of the income schedule: Nbhd/Econ Area, Class, Property Type, Level, Year Built. For more information, see Creating Income Schedules.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation

Procedure

  1. Open a Property , then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuation grid, either select an income valuation and click Details  to access an existing income valuation, or click Add to create a new income valuation.
  3. In the General section of the Income Details dialog box, complete the following fields as needed:

    Note None of the following fields are required. But, generally, entering values here facilitates schedule building because schedules can draw data from these fields..

    Income Details dialog, General

    • Nbhd/Econ Area

      An area in which similar types of properties react in a similar way to economic influences acting upon the properties within it.

    • Class

      A way of grouping properties in order to compare like properties, for example: Class A – Office, Class B – Office, Class A – Retail, Class A – In-House Properties, and so on.

    • Property Type

      Used in conjunction with Class to group properties for comparison. Examples of property type codes are: retail, apartments, or offices.

    • Level

      A categorization of properties that is customizable according to the requirements of your appraisal office. Some offices use simple names for the levels, such as Level 1 or Level 2.

    • Year Built
    • Stories
    • Expense Structure

      Defines expenses in the income analysis, such as full service with base year or full service with pass through.

    • Rent Type

      The type of rent, such as contract rent or market rent.

    • Primary Use Code
    • Property Name

      Enter a name for the property.

    • Comments/Notes
  4. Select the following as required:
    • Include in Pro Forma

      When selected, this income valuation is used to develop a pro forma valuation for comparable properties in the Pro Forma window. For more information, see Entering Pro Forma Data.

    • Include in GRM/GIM Pro Forma

      When selected, this income valuation is included in a GRM/GIM pro forma search. For more information, see Entering GRM/GIM Data.

      Note: Select this option only if you are confident that the information in this income valuation is reliable and can be used to accurately create pro forma valuation on similar properties.

  5. In the Metrics section, use the following options as required:

    Income Metrics

    • # of Units – To enter a value directly in the field, click Override.
    • GBA – To enter a value directly in the field, click Override.
    • Lease Up Cost – Click to derive a value for the costs needed to bring a property to 100% occupancy. Then, in the Lease Up Costs dialog box, complete the following fields:

      Income Lease Up

      • Rent Loss Area Sq. Ft

        The square footage that cannot be rented due to lack of finish-out.

      • Rent Sq. Ft.

        The rent per square foot that could be charged if the space was finished and leased out.

      • Number of Years

        The estimated time it will take to lease out the area. Used to calculated the Rent Total.

      • Lease Pct

        This percentage is used to calculate the Lease Total, and it is added to the Rent Total to be discounted.

      • Discount Rate

        The rate used to discount the income back to the present value.

      • Number of Years

        The length of time to discount the income.

      • TFO Sq. Ft.

        The cost to finish the unfinished space.

    • Excess Land – Click to derive a value for the amount of land that is in excess of the usual amount for this type of property. Then, in the Calculate Excess Land dialog box, complete the Typical Land Ratio and Land RSF fields. The next time the income valuation is recalculated, the land ratio is displayed in the Land Ratio field.
  6. Complete the fields in the Lease Information section as required, including:

    Income Details dialog, lease information section

    • Survey Date

      The date the appraiser received actual rent data or information related to the income portion of the property.

  7. Use the following additional options as required:
    • To recalculate the value of the property, click Recalculate.
    • To generate the income valuation worksheet, click Print Worksheet.
    • If a recalculation generated any error, click Errors… to open the Income Errors Dialog box displaying the error ID, method, and description.
    • To apply your data to the record and leave the window open, click Apply.
    • To apply your data to the record and close the window, click OK.
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Last updated on June 11, 2021

2.7.2.Adding Income Improvement and Land Details to the Income Approach #

Purpose

Use this procedure to include a property’s existing improvement details to the income approach, or to associate land details not on the property with the income approach. This procedure is required only if you wish to value the Income Valuation using the Schedule (Improvement Level) Method.

Note The Improvement and Land Details Designations panel used in this procedure is only enabled when a single property is associated with the income valuation.

Procedure

  1. In PACS 9.0, open a property, then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuation grid, either select an income valuation and click Details  to access an existing income valuation, or click Add  to create a new income valuation.
  3. In the Income Details dialog box, expand the Improvement and Land Details Designations panel.

    Income, Income Details, Improv Land Designations Panel

  4. In the Improvements grid, do the following as required:
    • To remove an existing improvement from the income approach, deselect the improvement’s Include option in the Improvements grid.
    • To view improvement details, select the improvement in the grid and click Details.
  5. In the Land Details grid, do the following as required:
  6. To associate a land detail not on the property with the income approach, click Add and use the Property Land Search Wizard to select land details.
    • To view details, select a land detail and click Detail.
    • To remove the land detail from the income approach, click Delete
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Last updated on June 11, 2021

2.7.3.Entering Direct Cap Data #

Purpose

Use this procedure to enter data for the direct cap method, which involves calculating the property value based on a stabilized income.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation
  • To apply and display improvement and land data, Apply Land & Imprv Designation Distribution to All Methods is enabled. From PACS.ADMIN, choose Tools > System Configuration > Income Valuation Options, set to True.

    Income, System Config, Income, Land, True

  • If you are going to use an income schedule, it must have been created with the Income Schedule Maintenance tool.

Procedure

  1. Open a property, then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuation grid, either select an income valuation and click Details  to access an existing income valuation, or click Add  to create a new income valuation.
  3. In the Income Details dialog box, expand the Direct Cap panel.
  4. To change the Taxes value displayed in the General section, click Override.

  5. To apply income and expense data from a schedule containing data that matches the data entered for the following fields in the General window of this income valuation (Nbhd/Econ Area, Class, Property Type, Level, Year Built) click Load Schedule Data.
  6. In the NRA (Net Rentable Area) section of the grid, complete the following fields as required:
    • Net Rentable Area

      The area that is considered rentable. If required, you can exclude hallways, utility rooms, and so on.

    • Leased Area

      The square footage of the net rentable area that is actually leased.

    • Vacant Area

      System-calculated by subtracting the leased area from the net rental area.

  7. In the GPI (Gross Potential Income) section of the grid, complete the following fields as required:
    • Vacancy

      The percentage that is vacant.

    • Collection Loss

      The percentage of rent considered uncollectible.

  8. In the EGI (Effective Gross Income) section of the grid, complete the following fields as required:
    • Operating Expenses (Less Taxes)

      Can be either all-inclusive (without real estate taxes), or can exclude those expenses detailed, such as management or reserves for replacement. These expenses can be entered in the Percent, Rate or Income columns, and the system calculates the value in the other two columns.

      • Percent

        An estimate of the percentage of effective gross income that is taken out for expenses. If you enter a percentage here, the rate per square foot of expenses and the total expenses are displayed.

      • Rate

        If you enter the expense rate per square foot, the percentage and total expenses are displayed.

      • Income

        If you enter a lump sum for total expenses, the percentage and rate per square foot are displayed.

    • Management

      The percentage charged by a professional management company to manage the property.

    • Reserve for Replacement

      The percentage of effective gross income required to be put in a sinking fund each year in order to fully pay the estimated replacement cost on short lived items at the end of the term.

    • Non-Recoverable Tenant Improvements

      Costs associated with tenant improvements that are not recovered in the rent or reimbursed expenses to the owner.

    • Leasing Costs

      Fees charged by leasing companies to find tenants for the subject property.

  9. In the NOI (Net Operator Income) section of the grid, complete the following fields as required:
    • Capitalization Rate
    • Tax Rate
    • Overall Capitalization Rate

      The rate used to capitalize the net income into an estimate of value.

    • Other Personal Property Value

      Entered here from the associated business personal property (BPP) account. This is done because the income value calculated considers all assets required to generate this income stream, and therefore create the estimate of value.

  10. If your system is configured to display land and improvement data, in the Totals Information section, enter the following values as required:
    • Less Personal Property

      This must be a positive value.

    • Other Value

      This can be a positive or negative value.

      Note If your system is not configured to display land and improvement data, Other Value can be entered in the grid. See the prerequisites for more information.

  11. Use the following additional options as required:
    • To recalculate the Income Valuation for all methods on the property, click Recalculate.
    • To generate the income valuation worksheet, click Print Worksheet.
    • If a recalculation generated any error, click Errors… to open the Income Errors Dialog box displaying the error ID, method, and description.
    • To apply your data to the record and leave the window open, click Apply.
    • To apply your data to the record and close the window, click OK.
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Last updated on June 11, 2021

2.7.4.Reviewing Schedule Data #

Purpose

Use this procedure if an income schedule was loaded on the Direct Cap window for the property and you would like to review the schedule’s data to determine how the property will be valued.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation
  • To apply and display improvement and land data, Apply Land & Imprv Designation Distribution to All Methods is enabled. From PACS.ADMIN, choose Tools > System Configuration > Income Valuation Options, set to True.

    Income, System Config, Income, Land, True

Procedure

  1. In PACS 9.0, open a property, then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuation grid, either select an income valuation and click Details to access an existing income valuation, or click Add  to create a new income valuation.
  3. In the Income Details dialog box, expand the Schedule (Property Level) panel.
  4. In the General section, to change the Taxes value, click Override.

    Income, Income Details, Schedule Prop Level, General

  5. In the Schedule Information section, review the schedule’s data.
  6. Complete the following fields as required:
    • Net Rentable Area

      The area that is considered rentable. If required, you can exclude hallways, utility rooms, and so on.

    • Other Personal Property Value

      Entered here from the associated business personal property (BPP) account. This is done because the income value calculated considers all assets required to generate this income stream, and therefore create the estimate of value.

  7. To display the income schedule applied to the income valuation, click Show Schedule.
  8. If your system is configured to display land and improvement data, in the Totals Information section, enter the following values as required:
    • Less Personal Property

      This must be a positive value.

    • Other Value

      This can be a positive or negative value.

      Note If your system is not configured to display land and improvement data, Other Value can be entered in the grid. See the prerequisites for more information.

  9. Use the following additional options as required:
    • To recalculate the Income Valuation for all methods on the property, click Recalculate.
    • To generate the income valuation worksheet, click Print Worksheet.
    • If a recalculation generated any error, click Errors… to open the Income Errors Dialog box displaying the error ID, method, and description.
    • To apply your data to the record and leave the window open, click Apply.
    • To apply your data to the record and close the window, click OK.
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Last updated on June 11, 2021

2.7.5.Reviewing Improvement Level Schedule Data #

Purpose

Use this procedure to review and modify income approach data associated with improvements.

Prerequisite

  • Improvements and Land Details are associated with the income approach and specified in the Improvement and Land Designations panel.
  • Only one property is associated with the income valuation.

Procedure

  1. In PACS 9.0, open a property, then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuation grid, either select an income valuation and click Details to access an existing income valuation, or click Add to create a new income valuation.
  3. In the Income Details dialog box, expand the Schedule (Improvement Level) panel.
  4. In the General section, select either Make Grid Static or, to edit values in the grid, click Override Schedule Values.

    Income, Income Details, Schedule Improvement Level, top

  5. In the Schedule Information drop-down list, select from the following options:
    • Included Only

      Displays only the improvements selected for inclusion in the Improvements grid of the Improvement and Land Detail Designations panel.

    • Excluded Only

      Displays only the improvements not selected for inclusion in the Improvements grid of the Improvement and Land Detail Designations panel.

    • All

      Displays all improvements from the Improvements grid of the Improvement and Land Detail Designations panel.

  6. If required, select from the following options displayed in the Schedule Information toolbar:
    • Show Schedule

      Opens a dialog box displaying the schedule being applied to the income valuation based on the year, neighborhood, improvement detail type and improvement detail method.

    • Copy

      Creates a copy of the selected improvement detail in this income approach, but not on the property.

    • Delete

      Removes the selected improvement from the income approach. Only copies can be deleted.

  7. Review the improvements displayed in the Schedule Information grid. To include an improvement in the Schedule (Improvement Level) calculations, select the Include column option.

    Note Values in this grid are determined using the income improvement detail schedule with matrices, and not values from the General panel.

  8. To modify values in the grid, select the Override column option.
  9. After reviewing the schedule’s data, complete the following fields in the Totals Information section as required:

    Income, Income Details, Schedule Improvement Level, bottom

    • Less Personal Property

      This must be a positive value.

    • Other Value

      This can be a positive or negative value.

  10. Use the following additional options as required:
    • To recalculate the Income Valuation for all methods on the property, click Recalculate.
    • To generate the income valuation worksheet, click Print Worksheet.
    • If a recalculation generated any error, click Errors… to open the Income Errors Dialog box displaying the error ID, method, and description.
    • To apply your data to the record and leave the window open, click Apply.
    • To apply your data to the record and close the window, click OK.
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Last updated on June 11, 2021

2.7.6.Entering Pro Forma Data #

Purpose

Use this procedure to value a property based on the pro forma method.

The pro forma method values properties based on income information stored in PACS. It is a comparison method that derives median values from the income information. Expense and capitalization rates are determined by compiling the median values for the properties that you specify in the Pro Forma Search dialog box.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation
  • The Include in Pro Forma check box is selected in the General section of the Income Details dialog box.
  • To apply and display improvement and land data, Apply Land & Imprv Designation Distribution to All Methods is enabled. From PACS.ADMIN, choose Tools > System Configuration > Income Valuation Options, set to True.

    Income, System Config, Income, Land, True

Procedure

  1. In PACS 9.0, open a property, then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuation grid, either select an income valuation and click Details to access an existing income valuation, or click Add to create a new income valuation.
  3. In the Income Details dialog box, expand the Pro Forma panel.
  4. To change the Taxes value displayed in the General section, click Override.

    Income, Income Details, Pro Forma, top

  5. To search for comparable properties, click Get Pro Forma Data. Then use the following options as required:
    • To enter new criteria:
      1. Select one of the check boxes and its corresponding […] button.
      2. In the Add/Remove dialog box, specify the data that the system will use to search for comparable properties and click OK.
      3. Continue specifying data for other check boxes as required.
      4. Click Search. Then review the properties in the grid that the system retrieved with the data you entered. Remove properties as needed.
    • To save the criteria that you specified for future use, click Save Criteria and in the Pro Forma Criteria Description dialog box, enter a name for the set of criteria.
    • To apply a previously specified set of search criteria to this dialog box, click Load Criteria. In the Pro Forma Criteria dialog box, select the set of criteria to apply.
  6. Note that the data at bottom of the Pro Forma Search dialog box changes as you add and remove properties to the grid. Adjust the list of properties in the grid as required. Then click OK.
  7. If your system is configured to display land and improvement data, enter the following values in the Totals Information section as required:
    • Less Personal Property

      This must be a positive value.

    • Other Value

      This can be a positive or negative value.

      Note If your system is not configured to display land and improvement data, Other Personal Property and Other Value can be entered in the grid. See the prerequisites for more information.

  8. Use the following additional options as required:
    • To recalculate the Income Valuation for all methods on the property, click Recalculate.
    • To generate the income valuation worksheet, click Print Worksheet.
    • If a recalculation generated any error, click Errors… to open the Income Errors Dialog box displaying the error ID, method, and description.
    • To apply your data to the record and leave the window open, click Apply.
    • To apply your data to the record and close the window, click OK.
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Last updated on June 11, 2021

2.7.7.Entering GRM/GIM Data #

Purpose

Use this procedure to value a property based on the GRM (Gross Rent Multiplier) and GIM (Gross Income Multiplier) method. GRM and GIM are often used to appraise properties that generate income by renting units, such as an apartment complex.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation
  • The Include in Pro Forma check box is selected in the General section of the Income Details dialog box.
  • To apply and display improvement and land data, Apply Land & Imprv Designation Distribution to All Methods is enabled. From PACS.ADMIN, choose Tools > System Configuration > Income Valuation Options, set to True.

    Income, System Config, Income, Land, True

Procedure

  1. Open a property, then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuation grid, either select an income valuation and click Details to access an existing income valuation, or click Add  to create a new income valuation.
  3. In the Income Details dialog box, expand the GRM/GIM Approach panel.

    Note The Schedule column pulls values from GRM/GIM schedules set up in PACS.ADMIN. For more information, see Creating Income GRM/GIM Schedules.

  4. In the Direct column, enter a value for one of the following rows as needed:
    • Potential Gross Income – Annual
    • Potential Gross Income – Monthly

    Income, Income Details, GRM-GIM Approach panel

  5. In the Direct column, enter a value for one of the following rows as needed:
    • Gross Income Multiplier (GIM)
    • Gross Rent Multiplier (GRM)
  6. Click Recalculate to populate missing values.
  7. To search for comparable properties, click Get Proforma Data. Then use the following options as required:
    • To enter new criteria:
      1. Select one of the check boxes and its corresponding […] button.
      2. In the Add/Remove dialog box, specify the data that the system will use to search for comparable properties and click OK.
      3. Continue specifying data for other check boxes as required.
      4. Click Search. Then review the properties in the grid that the system retrieved with the data you entered. Remove properties as needed.
    • To save the criteria that you specified for future use, click Save Criteria and in the Pro Forma Criteria Description dialog box, enter a name for the set of criteria.
    • To apply a previously specified set of search criteria to this dialog box, click Load Criteria. In the Pro Forma Criteria dialog box, select the set of criteria to apply.
  8. Note that the data at bottom of the Pro Forma Search dialog box changes as you add and remove properties to the grid. Adjust the list of properties in the grid as required. Then click OK.
  9. If your system is configured to display land and improvement data, enter the following values as required:
    • Less Personal Property This must be a positive value.
    • Other Value
  10. Use the following additional options as required:
    • To recalculate the Income Valuation for all methods on the property, click Recalculate.
    • To generate the income valuation worksheet, click Print Worksheet.
    • If a recalculation generated any error, click Errors… to open the Income Errors Dialog box displaying the error ID, method, and description.
    • To apply your data to the record and leave the window open, click Apply.
    • To apply your data to the record and close the window, click OK.
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Last updated on June 11, 2021

2.8.Selecting or Reviewing the Income Valuation #

Purpose

Use this procedure to select the value for the income valuation from one of the valuation methods.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation

Procedure

  1. In PACS 9.0, open a property, then expand the Income Valuations and Characteristics panel.
  2. In the Income Valuation grid, either select an income valuation and click Details  to access an existing income valuation, or click Add  to create a new income valuation.
  3. In the Income Details dialog box, expand the Summary panel.
  4. Review the Summary Breakdown and/or GRM/GIM Summary Breakdown.

    Income, Income Details, Summary Panel, top

  5. In the Value Information section, either select Flat and type a value for the property, or select one of the following valuation methods:

    Income, Income Details, Summary panel ,bottom

    • Direct Cap
    • Schedule (Property Level)
    • Schedule (Improvement Level)
    • Pro Forma
    • Discount Cash Flow
    • GRM/GIM – Schedule
    • GRM/GIM – Pro Forma
    • GRM/GIM – Direct

      Note If you select an option other than Flat, the value of the property is displayed next to the option you chose.

  6. Compare either the flat value or the value that PACS calculated for one of the other methods to the value in the Notice Value field, which contains the value of the latest appraisal notice.
  7. Use the following additional options as required:
    • To recalculate the value of the property, click Recalculate.
    • To generate the income valuation worksheet, click Print Worksheet.
    • If a recalculation generated any error, click Errors… to open the Income Errors Dialog box displaying the error ID, method, and description.
    • To apply your data to the record and leave the window open, click Apply.
    • To apply your data to the record and close the window, click OK.
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Last updated on June 11, 2021

2.9.Activating an Income Valuation for a Property #

Purpose

Use this procedure to specify an income valuation for a property.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation

Procedure

  1. In PACS 9.0, open a property. Then expand the Income Valuations & Characteristics panel.
  2. In the Income Valuations tab, select the income valuation you wish to activate. Then select the Active check box.

    Income, Income Valuations Panel, Income Valuations grid

  3. Click OK.
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Last updated on June 11, 2021

2.10.Reviewing or Changing the Value Distribution #

Purpose

Use this procedure to review the distribution of the value, and, if required, distribute the value across other properties.

Prerequisites

For Income Valuations using Schedule (Improvement Level) valuation, only one property displays in the Property Distribution grid.

Procedure

  1. In PACS 9.0, open a property. Then expand the Income Valuations & Characteristics panel.
  2. In the Property Distribution section, click Add .

    Note If an Income Characteristic is added, but no without an Income Valuation, the Add option in the Property Distribution panel is disabled.

  3. In the Property Search Wizard, specify another property ID to which the value will be distributed and click Search. After selecting the property, in the Percentage column, specify the percentage of the distribution. Repeat this step as required for other properties.
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Last updated on January 11, 2019

2.11.Finalizing the Income Valuation #

Purpose

Use this procedure to recalculate the property record values after completing the set up and selection of your income valuation.

You need to recalculate the values in order apply the calculations of the income valuation to the property and save the calculations.

Prerequisites

  • In order to perform this procedure, the following user rights are required:
    • Property > Income > Edit Income Valuation

Procedure

  1. In PACS 9.0, open a property. Then expand the Income Valuations & Characteristics panel.
  2. In the Income Valuation grid, select an income valuation and click Details.
  3. Click Recalculate.

Result

The system distributes the value across the property or properties based on the percentage entered. The distributed portion of the value is assigned to each account by deducting the land value of the distributed account from the distributed value.

The remaining value is placed on the improvement. If the land value is higher than the distributed value, a negative value is assigned to the improvement.

The income value is allocated to land and improvements of all included properties by taking the value of the land and subtracting it from the income approach value.

The remaining value is assigned to the improvement non-homesite value, which is displayed in the Values section.

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Last updated on January 11, 2019

2.12.Printing the Income Calculation Worksheet #

Purpose

Use this worksheet when a taxpayer protests a valuation and your office needs to provide documentation (that is, the worksheet) to demonstrate how the value of the property was determined.

Procedure

  1. In PACS 9.0, open a property. Then expand the Income Valuations & Characteristics panel.
  2. In the Income Valuation grid, select an income valuation and click Details.
  3. Click Print Worksheet.
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Last updated on January 11, 2019

2.13.Entering Income Characteristics #

Purpose

Use this procedure to enter actual rent data or information your office has received related to the income portion of your property.

Prerequisites

  • In order to perform this procedure, the following user right must be assigned to your ID:
    • Property > Edit Property > Value Summary > Edit Income Characteristic

Procedure

  1. In PACS 9.0, open a property. Then expand the Income Valuations & Characteristics panel.
  2. In the Income Characteristics section of the Income Valuations dialog box, click Add.
  3. In the Add Income Characteristic dialog box, enter the year and type of income characteristic. Then click OK.
  4. Complete the following fields in the General section:

    Income Characteristics General

    • Year
       
    • Property Name
    • Situs

      The physical location of the property.

    • Contact Name
    • Type

      The type of income characteristic.

      The section at the bottom of the Income Characteristics dialog box changes according to the type selected.

    • Set Active

      Indicates if this income characteristic is the active one for the year chosen. Only one characteristic can be active per year.

    • Owner Occupied/No Rent

      If selected, indicates that the owner resides at the building with no rent collected.

    • Survey Date

      The date the appraiser received actual rent data or information related to the income portion of the property.

    • Contact Phone
  5. Complete the following fields in the Income & Expense Information section:

    Income Characteristcs Income & Expense

    • Vacancy Rate

      The vacancy rate of the building.

    • Potential Gross Income
    • Actual Income
    • Misc. Income
    • Unusual Income
    • Unusual Expenses
    • # of Rooms/Buildings

      The number of rooms or buildings of the property.

    • Lease on Tenant Income/Comments

      The lease on tenant income or comments.

    • Reason

      A reason for the unusual expenses.

  6. As required, complete the following information:
    • In the Miscellaneous Income section, enter miscellaneous income type codes and the corresponding amounts.

      Codes for miscellaneous income such as parking, vending, and laundry.

    • In the Expenses section, enter expense type codes and the corresponding amounts.

      Codes for miscellaneous expenses such as electrical and plumbing services.

    • In the Amenities section, enter amenities codes and the corresponding amounts.

      Codes that represent amenities such as a pool, tennis court, laundry, and so on.

  7. If you selected Commercial as the type, complete the tenant information.
  8. If you selected Multi-Family as the type, complete the Multi-Family section for each unit.
  9. If you selected Mobile Home Park as the type, complete the Unit Mix section.
  10. Click OK or Apply.
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Last updated on June 11, 2021

2.14.Income Reports #

2.14.1.Generating the Income Schedule Report #

Purpose

Use this procedure to generate the Income Schedule Report displaying income schedules that meet customized criteria.

Procedure

  1. In PACS 9.0, choose Reports > Appraisal Schedules > Income Schedules.
  2. In the Income Schedule Report Dialog box, select the Year in which the required schedules were active.

    Income, Income Schedule Report

  3. Then choose from following criteria as required:
    • Economic Area

      An area in which similar types of properties react in a similar way to economic influences acting upon the properties within it.

    • Property Type

      The type of property, such as real, personal, auto, mobile home, or mineral.

    • Class

      A way of grouping properties in order to compare like properties, for example: Class A – Office, Class B – Office, Class A – Retail, Class A – In-House Properties, and so on.

    • Level

      A categorization of properties that is customizable according to the requirements of your appraisal office. Some offices use simple names for the levels, such as Level 1 or Level 2.

  4. In the Output Settings section, do the following:
    • In the Format drop-down list, select the report output format.
    • In the Filename field, enter the report file name.
    • In the Description field, enter a report description.
  5. Click Preview to preview the report. Click Post to generate the report and create a PACS inbox item from which you can view the report.
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Last updated on June 11, 2021

2.14.2.Generating the Income Valuations Using Other Property's Land Details Report #

Purpose

Use this procedure to generate the Income Valuations Using Other Property’s Land Details Report listing active valuations within a given year that use land details from another property. When a valuation uses a land detail from another property, the land detail is displayed on the Improvement and Land Details Designations panel of the income valuations property’s Income Details dialog box.

Procedure

  1. In PACS 9.0, choose Reports > Income > Income Valuations Using Other Property’s Land Report.
  2. In the Income Valuations Using Other Property’s Land Details Report Dialog box, select the year from the Year drop-down list.
  3. Select from the following search criteria as needed:

    Income, Report, Income Valuations Other Property's Land

    • As of Supp #

      The first or earliest supplement group included in the report.

    • Neighborhood

      The neighborhood(s) in which the property(s) with the income valuation is located.

    • Primary Use

      The Primary Use code(s) associated with the property(s) with the income valuation.

    • Appraiser

      The appraiser(s) who appraised the property(s) with the income valuation.

    • Situs Street

      The street(s) on which the property(s) with the income valuation is located.

    • Income Method

      The income method(s) included in the report.

    • Cycle

      The cycle(s) associated with the income valuation properties in the report.

    • Market Value

      The low and high values of the market value range between which the income property(s) is valued.

    • # of Units

      The low and high numbers of units on improvements on the income property(s). This value should match the value displayed in the General section of the Income Details dialog box (open a property, expand the Income Valuations and Characteristics, select an income valuation and click Details).

  4. Select the Sort order from the following options in the drop-down list:
    • Income ID
    • Owner Name
    • DBA
    • Situs
    • Neighborhood Code
    • Source PID
    • Used on PID
    • Market Value
    • Primary Use Code
  5. In the Output Settings section, do the following:
    • In the Format drop-down list, select the report output format.
    • In the Filename field, enter the report file name.
    • In the Description field, enter a report description.
  6. Click Preview to preview the report. Click Post to generate the report and create a PACS inbox item from which you can view the report.
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Last updated on June 11, 2021

2.14.3.Generating the Income GRM/GIM Schedule Report #

Purpose

Use this procedure to generate the Income Schedule GRM/GIM Report listing what income schedules are available according to certain criteria.

Procedure

  1. In PACS 9.0, choose Reports > Appraisal Schedules > Income GRM/GIM Schedules.
  2. In the Income Schedules GRM/GIM Report Dialog box, select the year of the schedules to be included in the report.
  3. As needed, select the following criteria using the check box and drop-down lists:

    Income Report, Income Schedule GRMGIM

    • Economic Area

      The economic area the schedule applies to.

    • Property Type

      The property type the schedule applies to.

    • Class

      The income class the schedule applies to.

    • Level

      The income level the schedule applies to.

  4. In the Output Settings section, do the following:
    • In the Format drop-down list, select the report output format.
    • In the Filename field, enter the report file name.
    • In the Description field, enter a report description.
  5. Click Preview to preview the report. Click Post to generate the report and create a PACS inbox item from which you can view the report.
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Last updated on June 11, 2021

2.14.4.Generating the GRM/GIM Properties Report #

Purpose

Use this procedure to generate a GRM/GIM Properties Report listing properties that (1) have an active income valuation using a GRM/GIM method and (2) meet other customized criteria.

Procedure

  1. In PACS 9.0, choose Reports > Income > GRM Properties.
  2. In the GRM/GIM Properties Report Dialog box, select the year of the active schedule.

    Income, Report, Income GRMGIM Properties

  3. Select the following selection criteria as needed:
    • As of Supp #

      Limited to zero (0).

    • Neighborhood

      The neighborhood in which the properties are located.

    • Primary Use

      The Primary Use code(s) associated with the property(s) with the income valuation.

    • Appraiser

      The appraiser(s) who appraised the property(s) with the income valuation.

    • Income Method

      The income method(s) included in the report.

    • Cycle

      The cycle(s) associated with the income valuation properties in the report.

  4. Use the Sort drop-down list to choose how data is the report is sorted.
  5. In the Output Settings section, do the following:
    • In the Format drop-down list, select the report output format.
    • In the Filename field, enter the report file name.
    • In the Description field, enter a report description.
  6. Click Preview to preview the report. Click Post to generate the report and create a PACS inbox item from which you can view the report.
Yes No Suggest edit
Last updated on June 11, 2021

2.14.5.Generating the Income Schedule Improvement Detail Report (9.0.31.x) #

Purpose

Use this procedure to generate the Income Schedule Improvement Detail Report listing income schedules applicable toward improvement detail valuations.

Procedure

  1. In PACS 9.0, choose Reports > Appraisal Schedules > Income Improvement Detail Schedules.
  2. In the Income Schedule Improvement Detail Report Dialog box, use the Year drop-down list to select the tax year in which schedules were active.

    Income, Report, Income Schedule Improvement Detail

  3. Then select the following criteria as needed:
    • Neighborhood

      The neighborhood to which the schedules applied.

    • Improvement Detail Type

      The improvement detail type to which the schedule applies.

    • Improvement Detail Method

      The improvement detail method to which the schedule applies.

  4. In the Output Settings section, do the following:
    • In the Format drop-down list, select the report output format.
    • In the Filename field, enter the report file name.
    • In the Description field, enter a report description.
  5. Click Preview to preview the report. Click Post to generate the report and create a PACS inbox item from which you can view the report.
Yes No Suggest edit
Last updated on June 11, 2021
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