When a rent review date falls mid-payment cycle, Re-Leased uses the chosen calculation method to determine the prorated amounts charged at the old and new rates. You can set a default method per company in Settings.
Setting Your Default Calculation Method
Navigate to Settings > Manage Companies and select the company.
Under the Invoicing section, choose the Default Rent Review Calculation Method.
Annual Calculation Method
The daily rate is calculated by dividing the annual rent by 365, then multiplied by the number of days charged at each rate.
Example: Monthly cycle from 1st–last day. Annual rent $40,000 increases to $45,000 on 20 April.
1–19 April at $40,000: daily rate = $40,000 ÷ 365 = $109.59 × 19 days = $2,082.21
20–30 April at $45,000: daily rate = $45,000 ÷ 365 = $123.29 × 11 days = $1,356.19
Monthly Calculation Method
The daily rate is calculated using the number of days in the specific month. Annual rent ÷ 12 ÷ days in month, multiplied by days charged.
Example: Same scenario. April has 30 days.
1–19 April at $40,000: daily rate = $40,000 ÷ 12 ÷ 30 = $111.11 × 19 days = $2,111.09
20–30 April at $45,000: daily rate = $45,000 ÷ 12 ÷ 30 = $125.00 × 11 days = $1,375.00
In North America, "Tenancies" are referred to as "Leases" and "Terms & Breaks" as "Terms & Options". For more information, see our Glossary of Regional Terminology.