Entering and Maintaining Rent and Rent Steps
Rent Help Page Summary
This tutorial page will instruct you on using the Rent tab, the field values and options available. The Rent page will be displayed for all lease types. For iLeasePro general navigation instructions, please visit the QuickStart General Navigation page.
Page Sections
The Rent page contains information and is separated into three sections;
Examples on Entering Rent
Section Help
Every page with Sections offers you additional help for that Section. This help information can be accessed by clicking on the question mark in the Section header bar.
Notes
To add annotations/notes to support the information entered, click on the notepad icon shown above. A new page will be displayed where you can add personalized notes that you would like to make to help you or others in your team identify key dates/reasons, etc for the lease information entered.
Rent Info
The Rent page is used to enter in the Rent and Rent Steps that have been defined in the lease agreement. The Rent feature allows the rent payment amounts to be entered as structured (Annually, Monthly, Annual or Monthly PSF) in the lease and will automatically calculate the base payment amount with any concessions entered. Rent steps will be automatically calculated based on type of rent step selected; flat amount, incremental, or percentage increase methods.
IMPORTANT NOTES: (1) The Rent Step data defined will be used to build the detail payments (found on the Payments Tab). (2) If the Rent is modified in any way, the Update Payments button must be selected in order to modify the Payments. (3) Prorated payments will be required to be added in manually on the Payment tab after the rent data has been modified or added. (4) If any modifications to the Payment Table where made (prorations, etc), they will need to be added back to the Payment Table after any change.
Base Rent: (A required field) the Base Rent is the amount to be paid back to the Lessor for the use of the asset. Enter in the Base Rent amount specified on the lease.
Rent Per: (A required field) Select the frequency of the payment or RentPer from the dropdown list to automatically calculate the Base Rent.
The dropdown options for Rent Per are;
- Per Year – Select Per Year if the rent payment is made one time per year for each year within the lease term as specified in the lease
- Per Month – Select Per Month if the rent payment is made one time per month for each month within the lease term as specified in the lease
- PSF Per Year – Select PSF Per Year if the lease type is a real estate lease and the rent payment is based on the square feet of the space being leased and the rent payment is made one time per year for each year within the lease term as specified in the lease
- PSF Per Month – Select PSF Per Month if the lease type is a real estate lease and the rent payment is based on the square feet of the space being leased and the rent payment is made one time per month for each month within the lease term as specified in the lease
Free Rent: If the lease specifies a concession, enter the number of Free Rent months in the field provided. It is assumed that the concession will occur in the first months of the lease term. If no concession has been specified, enter zero in the Free Rent field.
Note: When a Free Rent month value is entered, the Rent Step table will automatically generate a Rent Step for the number of months defined starting at the Commencement Date specified in the lease.
Rent Steps
Entering and Calculating Rent Steps. A rent step, rent bump or a rent step-up stipulates the periodic rental rate increase to the Base Rent over the lease term. The rent step calculation is based on the Base Rent amount entered and the Rent Per selected. For example, if the Per Month RentPer is selected then the rent bumps should be entered as monthly.
To Add Rent Steps,
- Select the type of increase method defined in the lease; Flat Amount, Incremental or Percentage Increase and begin adding the step amounts.
- Flat Amount.Flat increases, in currency format, will be entered as the actual rent amount for that rent step period.
- Incremental increases, in currency format, will be entered as the incremented amount over the previous rent step.
- Percentage increases, in percentage format, will be the percentage increase from the previous rent step amount. The Percentage increase is based on a simple percentage calculation. This calculation method would be used for leases with CPI increases.
- Select appropriate Number of Rent Steps “# of Steps” from the dropdown list.
In this example 5 Steps was selected from the # of Steps dropdown list. Five rows will automatically be created in the Rent Step table
- Change Rent Step Dates. Mouse click in the date field to update. A calendar popup will be displayed. Select the correct date and the date value will be automatically populated in the date field that has the focus. The first rent step will always have a Rent Amount of zero to represent the base rent amount defined.
- Add the increase amount for the rent step specified in the lease.
- Repeat these steps for each rent step defined in the lease.
When done entering or updating the rent data, select the Save and Update Payments button. This will save the Rent Information and create a new Payments table based on the rent data entered.
NOTE that if the Clear Rent button is selected, or any of the following field values are changed; Calculation Type, Base Rent amount, Free Rent, Commencement Date, Expiration Date, the rent step table will be initialized.
Example Flat Amount Increases
The Flat Amount increases should be entered according to the RentPer selection made for the lease.
If the Base Rent is $2.37 and the RentPer selected is Per Square Foot Per Month, the step increases must be in the same format as the base rent, eg Step 1 at $2.40, Step 2 at $2.45, Step 3 at $2.50 and Step 4 at $2.55.
When done entering or updating the rent data, select the Save and Update Payments button. This will save the Rent Information and create a new Payments table based on the rent data entered.
Example Incremental Amount Increases
Incremental Amount increases should be entered according to the RentPer selection made for the lease.
If the Base Rent is $21.54 and the RentPer selected is Per Square Foot Per Year, the step increases must be incremental increases of the base rent, eg the Step 1 step increase of $1.25 would increase the Rent PSF to $22.79 (base rent of $21.54 + $1.25 = $22.79), Step 2 step increase of $2.50 would increase the Rent PSF to $25.29, Step 3 step increase of $3.75 would increase the Rent PSF to $29.04.
When done entering or updating the rent data, select the Save and Update Payments button. This will save the Rent Information and create a new Payments table based on the rent data entered.
Example Percentage Amount Increases
To calculate the Rent Steps using Percentage Amount increases with Simple Compounding
Incremental Amount increases should be entered according to the RentPer selection made for the lease.
When done entering or updating the rent data, select the Save and Update Payments button. This will save the Rent Information and create a new Payments table based on the rent data entered.
Additional Rent Info & Documents
iLeasePro includes additional field to capture key rent related information and the ability to upload any electronic version of a document related to rent.
Payment Due Day in Month: Select from the dropdown list the day in the month that the lease payment is due. If the lease payment is due on the last day of the month, select Last Day in Month from the list.
Late Fee Charge. If a Late Fee is defined in the lease, select whether it is based on a Flat Amount or a Percent of the Base Rent by clicking on the radio button selectors. Enter the Flat Amount or a Percent of the Base Rent specified in the lease into the Amount field. If the lease specifies that this amount will carry interest, check the With Interest checkbox. If the lease specifies a grace period, enter the number of days of this grace period in the within days of demands field. If the lease specifies the rate at which the Late Fee will be charged per day after the grace period, enter that rate per day in the field after the at a rate of or select max allowed checkbox if defined as such.
Rent Document Management
For detailed explanation on uploading an electronic document into iLeasePro, please reference the Upload Document Help Page.
2021.01