Turnover rent is currently available to a limited group of customers as part of a beta.
Once turnover rent is enabled for your organisation, you configure it on each lease that needs it. This article walks through the full setup: creating sales categories, adding a rate term, and setting the invoice details for the lease.
Before you start
Turnover rent must be enabled for your organisation first. If it isn't, you'll see a prompt to configure your company settings when you open the lease. See Enabling turnover rent for your organisation.
Open the turnover rent settings for a lease
Open the lease.
Go to Rent & Outgoings.
Select the Turnover Rent tab.
Switch the turnover rent toggle on for this lease.
You can't switch turnover rent on until the lease has at least one term. If you toggle it on before adding a term, Re-Leased prompts you to create one.
[Image 1: The Turnover Rent tab on a lease showing the enabled status and the Categories, Terms, and Invoice settings sections]
Step 1: Create sales categories (optional)
Sales categories let you split a tenant's sales so you can apply a different rate to each — for example, separating food sales from beverage sales. If a tenant reports a single sales figure, you can skip this step and use a flat rate instead.
In the Categories section, add each category with a name and description.
Reorder categories if you want them to appear in a particular order when recording sales.
You can set the rate for each category when you create the term in the next step.
Step 2: Add a term
A term holds the rules used to calculate turnover rent for a period of time. In the Terms section, select the option to add a term and complete the following.
Effective from date and description
Effective from — the date this term starts applying.
Description — an optional label to help you recognise the term. Re-Leased also generates a plain-language summary of the term's settings for you.
Revenue collection period
Choose how often the tenant reports sales: Monthly, Quarterly, or Annually. This sets the periods you'll enter sales against.
Base rent treatment
This controls how the tenant's base rent affects the turnover rent they pay:
None — turnover rent is charged in full, in addition to base rent.
Subtract from base rent — the base rent the tenant has already paid is deducted from the calculated turnover rent, so they only pay turnover rent above what they've paid in base rent.
Lesser of — base rent and turnover rent are compared, and the treatment is resolved when you reconcile the period.
Each option has an in-product explanation next to it. For worked examples, see How turnover rent is calculated.
Rates
You can charge a single flat rate or use tiered rates.
Flat rate — a single percentage applied to all sales. With categories, you set a rate per category.
Tiered rates — switch on Use tiered rates to charge different percentages at different sales bands (for example, 5% on the first $100,000 and 7% above that). Set the From and To amount and the rate for each tier, and a rate per category if you're using categories.
Tier reset period
When you use tiered rates, choose the tier reset period — the period over which sales accumulate before the tiers start again (for example, annually). If this period is longer than the collection period, Re-Leased calculates turnover rent cumulatively across the period. The tier reset period can't be shorter than the revenue collection period.
Save the term when you're done.
[Image 2: The Add term dialog showing base rent treatment, tiered rates, and the tier reset period options]
Editing a term later
You can add future terms as a lease's rates change, and copy the tiers from a previous term to save time. Once sales have been recorded against a term, its rate settings are locked to protect existing figures, and Re-Leased shows a banner explaining this. To change rates from a certain date, add a new term with a later effective date.
Step 3: Set the invoice details for the lease
In the Invoice settings section, review the invoice defaults for this lease. These start from your company invoice template and can be adjusted for the lease if needed.
Next steps
Your lease is now ready. As the tenant reports sales, record them for each period — see Recording sales figures for a period.