For North American users, please be aware that "Tenancies" are known as "Leases" and "Terms & Breaks" within a Tenancy are referred to as "Terms & Options". For more information on regional terminology, please refer to our Glossary of Regional Terminology.
This article explains how you can allocate increases from your Rent Reviews to line items in your Rent Template. Simply put, it's about determining exactly how the additional charges following a rent review are distributed across different charges in your rental agreement. We’ll cover step-by-step instructions for this crucial task, ensuring your rent calculations remain accurate.
How Rent Review Increases Work
Allocating a Rent Review increase means deciding which lines on your Rent Template will be adjusted to reflect the new rent amounts after a review:
- If you apply the increase to several line items, the total increase is split proportionally across those lines. It’s important to note that this doesn’t change the calculations of rent subtotals.
- Increases cannot be allocated to Outgoings or Service Charges categories.
You can set allocations for Rent Review increases from two different areas in your Rent Template. Let’s dive into each.
Area 1: Updating the Rent Template from Rent & Outgoings
While in the Rent & Outgoings tab, you will determine which line items are eligible for the increase in the next Rent Review period.
Area 2: Updating the Rent Template during the Rent Review
- You will notice a banner that displays the total amount of increase that needs to be allocated.
- The system provides you with Old Rate and New Rate columns to compare rates side by side. Note these are read-only unless manual updates are required.
Manually Updating the Allocation during a Rent Review
- Select the option to manually update the Rent Template within the Rent Review.
- Add new line items or adjust rates manually as needed.
- Upon selecting manual updates, a message will inform you:
You are about to manually update your rent template. You can cancel this at any time to revert back to your original template.
When manual updates are enabled, the allocation checkboxes will not automatically calculate increases. Instead, any modifications where checkboxes are marked will take effect in a subsequent rent review.