Lucernex Real Estate Solutions Strategist, Mike Hammerslag, MS(RE), MBA, CPM® (see Mike’s management summary here), discusses how your straight-line rent accounting process can violate basic accounting principles.

The current reporting guideline governing the accounting for leases in the United States is a regulation known as FASB 13. The fundamental premise of that reporting is that the total rent paid under the lease will be accounted for on a straight-line basis over the entire term. But there are issues. (more…)