Understanding Concession Levels
Enhanced Concessions supports three levels of application, giving you granular control over how concessions are applied:
1. Budget-Level Concessions
Applied to: Entire budget across all schedules
Use when: Tenant has a single, simple concession that applies to all expenses
Example: "Tenant pays maximum of $50,000 total for all service charges"
2. Schedule-Level Concessions
Applied to: Specific schedules (e.g., "Insurance Schedule" or "Maintenance Schedule")
Use when: Different concessions apply to different expense categories
Example: "Tenant has a $10,000 cap on Insurance but pays 100% of Maintenance"
3. Account-Level Concessions
Applied to: Individual chart of accounts within schedules
Use when: You need the finest level of control
Example: "Tenant has a $5,000 cap on Land Tax, fixed $2,000 for Council Rates, and a $1,000 collar for Water Rates"
Concession Types Explained
1. Cap (Maximum Amount)
What it does: Sets the maximum amount a tenant will pay for an expense.
Example:
Budgeted Amount: $15,000
Cap Concession: $10,000
Tenant Pays: $10,000 (the lower amount)
Common Use: Management fee caps, overall expense caps
2. Collar (Minimum Amount)
What it does: Sets the minimum amount a tenant must pay, even if the actual expense is lower.
Example:
Budgeted Amount: $3,000
Collar Concession: $5,000
Tenant Pays: $5,000 (the higher amount)
Common Use: Minimum uplift requirements, ensuring tenants contribute at least a certain amount
3. Fixed Amount
What it does: Tenant pays a specific fixed amount regardless of actual expenses.
Example:
Budgeted Amount: $12,000
Fixed Amount Concession: $8,000
Tenant Pays: $8,000 (always)
Common Use: Fixed contributions agreed in lease
4. Percentage of Rent
What it does: Tenant's contribution is calculated as a percentage of their annual net rent.
Example:
Annual Net Rent: $100,000
Percentage: 5.5%
Tenant Pays: $5,500 (5.5% of $100,000)
Common Use: Service charges tied to rental value
5. Rent Inclusive
What it does: Expense is included in the rent, tenant pays $0 separately.
Example:
Budgeted Amount: $8,000
Rent Inclusive Concession
Tenant Pays: $0 (already included in rent)
Common Use: Exclusion scenarios where expenses are covered by base rent
How to Configure Enhanced Concessions
Prerequisites
Access Required: Budget approval permissions
Budget Status: Budget must be in draft or pending approval state
Step-by-Step Guide
Step 1: Navigate to Budget Concessions
Navigate to Budgets section in the main menu
Select the budget you want to configure
Click on Concessions tab or button
Step 2: Select a Tenancy
In the Tenancy dropdown at the top, select the tenant you want to configure concessions for
The interface will load existing concessions for that tenancy (if any)
Step 3: Choose Concession Method
You'll see four method options with icons:
No Concession (✖): No concessions apply to this tenant
Budget Level (📄): Apply concession to entire budget
Schedule Level (📋): Apply concessions to specific schedules
Account Level (📊): Apply concessions to individual chart of accounts
Click on your desired method to select it.
Step 4A: Configure Budget-Level Concession
Select Budget Level method
Choose Concession Type from dropdown (Cap, Collar, Fixed Amount, etc.)
Add details:
Enter Amount (for Cap, Collar, Fixed Amount) OR
Enter Percentage (for Percentage of Rent)
Leave blank for Rent Inclusive
Click Save
Step 4B: Configure Schedule-Level Concessions
Select Schedule Level method
You'll see a list of all schedules in the budget (e.g., "Insurance", "Maintenance", "Utilities")
For each schedule:
Click Add or the + icon next to the schedule
Choose Concession Type from dropdown
Add details: Enter the required Amount or Percentage
Repeat for additional schedules as needed
Click Save
Step 4C: Configure Account-Level Concessions
Select Account Level method
You'll see schedules with expandable chart of accounts
For each chart of account: Locate the specific account (e.g., "Land Tax", "Council Rates", "Water Rates")
Choose Concession Type from dropdown in that row
Add details: Enter the required Amount or Percentage
Configure multiple accounts across different schedules
Click Save
Step 5: Validation and Save
The Save button will be:
Disabled (greyed out) if validation fails:
Percentage types: Missing or invalid percentage (0-100)
Amount types: Missing or invalid amount (> 0)
Enabled (active) when all concessions are valid
Once saved successfully:
You'll see a confirmation message
Concessions are automatically applied to calculations
Changes appear in Tenant Certificate and Owner Certificate reports
Viewing Concessions in Reports
Tenant Certificate Report
When enhanced concessions are configured, the Tenant Certificate report displays:
Without Concessions (4 columns):
Expenditure
Budgeted Amount
Area Allocation Percentage
Area Allocation Amount
With Schedule/Account Concessions (6 columns):
Expenditure
Budgeted Amount
Area Allocation Percentage
Area Allocation Amount
Concession (shows type and amount)
Adjusted Portion (final amount after concession)
Owner Certificate Report
The Owner Certificate (Landlord Reconciliation) report shows:
All tenancy concessions with adjusted amounts
Grand totals reflect concession adjustments
Owner contributions calculated correctly based on adjusted tenant portions
Common Scenarios and Examples
Scenario 1: Simple Cap on Total Budget
Situation: Tenant has a $50,000 cap on all service charges combined.
Solution:
Method: Budget Level
Type: Cap
Amount: $50,000
Result: Tenant pays maximum of $50,000 total regardless of actual expenses.
Scenario 2: Different Caps Per Schedule
Situation:
Tenant has $10,000 cap on Insurance
No cap on Maintenance (pays 100%)
$5,000 cap on Utilities
Solution:
Method: Schedule Level
Insurance Schedule: Cap $10,000
Maintenance Schedule: No concession (leave blank)
Utilities Schedule: Cap $5,000
Scenario 3: Complex Multi-Account Configuration
Situation:
Land Tax: Cap at $5,000
Council Rates: Fixed amount of $2,000
Water Rates: 10% of annual rent
Insurance: Included in rent (no separate charge)
Solution:
Method: Account Level
Land Tax: Cap, Amount: $5,000
Council Rates: Fixed Amount, Amount: $2,000
Water Rates: Percentage of Rent, Percentage: 10%
Insurance: Rent Inclusive