If you select the rent adjustment type Index adjusted, you must first select the adjustment frequency (once a year, once a month, every two, three or six months).
Select the adjustment months from the list according to the chosen adjustment frequency.
Under Index, you can select the Cost-of-living index or the Real estate maintenance cost index.
The base index determines the starting point for index-related adjustments. Select the release date of the index that is used, when the index-related adjustments become effective.
If your rent will be adjusted on 1 January 2012, for example, you may choose to use the index released two, three or four months before.
You can also determine an additional increase percentage for the adjustment.
It will be specified separately in the agreement, whether the rent increases or not in case the index value decreases.
It is also possible to select future index value for base index, by choosing the desired year and entering the value 0. The rent will be adjusted, once the value for the desired year has been entered in the system.
You can also determine a minimum increase, e.g. 2%, for the adjustment.
In addition, you can also determine other exceptions related to index adjustments.
In the example, the index increase between 1 December 2017 and 31 December 2019 is 50%,
and the adjustment agreed upon in the agreement will become effective on 1 January 2020.
Descriptions of the headers on the index adjusted rent adjustment form
| Header in the form | Description |
|---|---|
| Term name | The software will name the term automatically, but you can change it, if required |
| Rent adjustment frequency | How often the rent is adjusted (once, twice, four times, six times of twelve times a year) |
Rent adjustment months | Months, at the start of which the adjusted rent will be charged |
Adjust rent on document beginning date | The rent in the agreement will be adjusted on the beginning date, and subsequently according to the adjustment interval. |
First adjustment | The first possible adjustment date of the agreement |
Notification of change must be | Here, you can choose when a notification about the rent increase will be sent to the tenant. Notifications about rent increases are created automatically according to this selection when creating invoices. |
Index | The name of the index used in rent adjustment (e.g. Cost-of-living index) |
Base index | The base index used in the agreement |
Index quoted (prior to adjustment) | Release months of the index values used in the adjustments (note that these months are always the months prior to the adjustment) |
Additional increase per cent | The additional increase per cent adds the selected percentage on top of the index adjusted rent adjustment (as well as on top of the minimum increase) |
In case of decrease in index | Rent is not reduced / Rent is reduced |
Increase at least | The minimum increase of the rent – used if greater than the index adjusted adjustment (%) |
Index notice | Time interval during which the index adjusted adjustment will be multiplied with the per cent selected |
