The term "Budget" varies depending on the region. For our Asia-Pacific customers, it's often referred to "Budgeted Outgoings." European users will see it labelled as "Service Charge," while those in North America will find it listed as "Operating Expenses." The terminology used in the app adjusts based on your location. For additional clarity on regional vocabulary, please see our Glossary of Regional Terminology.
This article serves as a guide for including tenancy concessions – specifically Cap and Collar limits – in property budgets when calculating Outgoings. These terms help manage how much Tenants are required to contribute, providing a measure of control over these payments within the designated budget period.
Understanding Cap and Collar Concessions
- Cap: This is the maximum amount a Tenant will be charged for the budget.
- Collar: In contrast, this indicates the minimum amount the Tenant will be obligated to pay.
Note that these limits apply to the budget as a whole, rather than individual allocations within it or across multiple budgets for a property.
Setting Default Cap or Collar Amounts
To set the tenancy concessions, follow these steps:
- Open the Tenancy Details tab within the tenant's profile.
- Specify either a default cap or collar amount for the tenancy. Remember, you can set one, but not both.
- These settings will automatically apply to all new budgets associated with the tenancy unless manually overridden during the budgeting process.
Editing Tenancy Concessions in a Draft Budget
Changes to tenancy concessions can be made to draft budgets:
- Access the budget and select the Edit Tenancy Concessions option to modify the cap or collar amount.
- Save changes to ensure they are reflected in the final budget allocations.
Reviewing Tenancy Allocation Impacts
Determine how the cap or collar will affect tenant allocations during the budget approval process:
- Navigate to the Owner Contributions tab in the budget.
- Assess the impact of the Tenancy Concessions.
By incorporating cap and collar concessions into your budget, you can forecast and manage your property's Outgoings effectively, providing both predictability for your property management team and clarity for your tenants.