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 guide is designed to help you seamlessly perform a rent review in Re-Leased. Whether it's an annual adjustment or a mid-lease period change, understanding how to update your tenant's rent and outgoings will ensure accurate billing and compliance. We'll explain the important considerations and provide step-by-step instructions for completing a rent review.
Important Considerations Before the Rent Review
Before initiating a rent review, it's crucial to:
- Specify the preferred method for Rent Review adjustments calculations. For guidance, please see: Rent Review Adjustment Calculations.
- Be aware that you can generate a pro-rata rent invoice if the review date does not align with the tenant's payment cycle. The system can also retroactively adjust invoices that have already been paid at the previous rate.
- Remember that the rent review will only update the first line of rent in the current Rent & Outgoings template. Any additional line items require manual adjustments.
Initiating a Rent Review
A rent review can be initiated from a Calendar Dashboard Notification or within the Rent Reviews tab of the tenancy.
- Click on Perform Review.
- In the Has the Rent Changed? dropdown, select Yes.
- Input the new Amount or Percentage.
- Add any necessary Notes.
- Click on Continue.
On the following screen, save the new rent template with the updated rate, which will be applied starting from the next rent period.
Understanding the Rent Update Summary
The summary screen provides details about the rent adjustments:
- The prorated period charges at both the old and new rates.
- The newly created rent template that will take effect in the next rent period.
The system will automatically generate prorated invoices and adjust any existing invoices as necessary, ensuring all charges reflect the updated rent.
Finalizing the Rent Review
To complete the process:
- You will see line items for the prorated period including the old rate and the corrected new rate, highlighting the difference still to be invoiced.
- Review any future dated invoices showing the amount still to be charged.
- Choose to Create Invoice to bill for the adjusted amount or Skip if you prefer not to adjust the invoices.
It's important to carefully review this section to ensure that the rent adjustments are accurately captured and that your tenants are billed correctly.
By following these detailed steps, you can competently perform a rent review in Re-Leased, ensuring your financial records reflect the current rent agreement with your tenants.