About turnover rent
In addition to lease contracts based on a fixed rent per month, Planon also supports another way of agreeing rent payments, a variant in which the lease amount depends on the reported turnover. Turnover rent can be used in addition to fixed rent, or in combination with fixed rent.
Turnover rent is a type of rent mainly found in retail lease agreements where the lessee pays the lessor a percentage of the gross sales generated by the leased rentable unit. Often, but not always, the lessee starts paying a rent until the location's gross sales exceed a specific threshold called a breakpoint. A lessee can pay a percentage of rent instead of or in addition to the base rent.
 | Turnover rent in Planon can be used based on the lessee perspective but also based on lessor perspective. |
Before working with turnover rent, some configuration is required:
• The agreements between lessor and lessee are negotiated per contract.
• A profile must be drawn up to register the schedule of the turnover rent, the agreed conditions on how the turnover rent is calculated, the agreed prepayments, etc.
Once this profile is linked to a contract, the contract is ready to be settled on the basis of reported turnover. After calculating and checking the completeness of the turnover, you can close a period to calculate the rent based on the reported turnover. The calculated rent is registered as a once-only payment at the end of the settlement period.
The Turnover rent solution in Planon consists of the following TSIs:
• Turnover rent - configuration
Here you can set up lease contracts, turnover types, turnover profiles, turnover groups and breakpoints.
• Turnover rent - input data
Here you can register the turnover results reported by the lessees.
• Turnover rent - settlement
Here you can perform a (trial) turnover settlement for a specific period.
For more information, see the relevant sections in Working with...
| | Turnover rent is sometimes also referred to as ‘percent rent’, ‘percentage rent’, or 'sales-based rent'. |