Rent & Outgoings/Service Charge Invoices at the End of a Term

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Depending on your region, the terms "Outgoings" and "Service Charges" may be used interchangeably. In Asia-Pacific regions, "Outgoings" is the prevalent term, whereas in Europe, "Service Charges" is more commonly used. For a complete reference to regional terms used in this article, please visit our Glossary of Regional Terminology. 

This article serves as a guide to understanding how Re-Leased automatically generates Rent and Outgoings invoices at the end of a lease/tenancy term. We’ll delve into the conditions that trigger the creation of a partial invoice, elaborate on how these partial amounts are calculated, and clarify what happens when a term is renewed or held over. By the end of this guide, you should have a clear picture of this aspect of your property management financials.

When Are Partial Invoices Generated?

A partial invoice for rent and outgoings may be generated under the following circumstances:

  • The term’s start date does not align with the invoice frequency established in the rent or service charge template.
  • The lease/tenancy term is not set as holding over – meaning the term will not continue past its original end date without renegotiation or renewal.

Calculating the Partial Invoice Amount

The partial invoice amount is determined based on a simple prorated formula, applied when the conditions mentioned above are met:

  1. Divide the annual amount by 365 days to find the daily rate.
  2. Multiply this daily rate by the number of days in the partial invoice period.

This calculated amount reflects the pro-rata charge for the partial period at the end of a term.

Handling Renewed or Hold Over Terms

Should your lease/tenancy term be renewed or held over after a partial term-end invoice has been generated, the next invoice will adjust to reflect the remainder of the balance - not by using the formula above. Here's how it works in practice:

Example Scenario:

  • Term-end date: 30th September
  • Invoice Frequency: Monthly on the 20th
  • Term State: Not holding over
  • Result: An invoice is generated to cover the partial period of 20th September to 30th September.
  • If the term is later set to holding over, the next invoice generated will cover 1st October to 19th October, for the remainder of the period.
  • If the term is not set to holding over and thus expires, no further invoices will be generated.

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