Core TSIs : Turnover rent : Concepts : Accumulation period
Accumulation period
An accumulation period is a defined timeframe in which a lessee’s turnover from multiple shorter periods—such as months, quarters, half-years, or a full year—is combined (accumulated) to calculate turnover rent.
This approach helps smooth out fluctuations in turnover, resulting in a more consistent rent calculation over time. When turnover varies significantly during the year, accumulation ensures a more balanced distribution of turnover rent. This method can also be combined with a minimum guaranteed rent to spread payments more evenly across the year.
At the end of the accumulation period, the final turnover rent is calculated based on the total accumulated turnover and the applicable breakpoint or tiered thresholds. The accumulated payments are then deducted from the final amount due, ensuring that the lessee only pays turnover rent once per portion of turnover and avoiding overpayment.