Turnover rent
Accessing the Turnover rent menu
To access the turnover rent menu, navigate to the contract screen and select a specific contract to view its details. The Turnover Rent button is only active if the contract includes a contract line of the type Turnover Rent.
Turnover conditions
In the Turnover Conditions section, the user can define the start date of the turnover period. From this date onward, turnover periods are automatically generated until the end date of the Turnover Rent contract line. The duration of each turnover period is determined by the selected turnover period type.
Artificial and natural break points
Both artificial and natural break points are supported for turnover rent calculations.
• Artificial break point
◦ Each threshold can be defined with a from and to value.
◦ Thresholds may optionally be indexed using the index method of the contract line turnover period.
◦ For each threshold, a turnover rent percentage (between 0% and 100%) must be specified.
• Natural break point
◦ A natural break point percentage is required.
◦ The natural break point value is calculated by applying this percentage to the base rent.
◦ Any turnover above the natural break point is then multiplied by the same percentage to determine the turnover rent.
Turnover Graph
The Turnover Graph displays the following metrics per calendar year or forecast year, depending on the selected period type:
• Base rent
• Turnover rent
• Turnover
• Rent-to-turnover ratio
Turnover Table
The Turnover Table provides a detailed breakdown of each turnover period, starting from the turnover period start date to the end date of the turnover rent contract line. It includes the following components:
• Base rent
The total passing rent from contract lines of type Passing Rent that are linked to the same rentable units as the turnover rent contract line during the turnover period.
• Prepaid turnover rent
The total of all cash flows from the turnover rent contract line during the turnover period that are classified as prepaid turnover rent.
• Turnover
The lessee’s reported turnover during the turnover period. Note: Turnover entries must exclude broken turnover periods.
• Turnover rent
Calculated as the turnover rent percentage multiplied by the lessee’s turnover, potentially adjusted to account for broken turnover periods.
• Turnover rent settlement
The difference between the calculated turnover rent and the prepaid turnover rent.