Use this tab to define parameters for calculating retail
sales amounts for commercial properties. This tab appears when you click
Next from the Retail
Dates tab.
Sales Percentages
The percentage rent is determined by a series of comparisons
using the actual reported sales amounts less any stated breakpoint for
the defined billing period. The net sales amount is then applied to each
level of percentage rent formulas to determine if any % rent is due for
that formula. The amounts calculated from each of the qualifying formulas
will be added together to obtain the total amount of percentage rent due.
Hide/Show Details
Where available, select this option to hide or
show grid details.
Sales From
Beginning Sales Volume for this level of percentage
rent calculation. Enter the minimum amount of retail sales necessary to
begin billing percentage rent for. Or use the Calculator
Button to figure an amount.
Sales To
Ending Sales Volume for this level of percentage
rent calculation. Enter the maximum amount of retail sales necessary to
stop billing percentage rent for. Or use the Calculator
Button to figure an amount.
Percent
The percent to be charged on this volume. Enter
the percent of the offset amount to use in the percent rent calculations.
Or use the Calculator Button to figure
an amount.
Delete
Click the Delete button to
remove the selected line item from the Sales
Percentages grid.
Offset
Hide/Show Details
Where available, select this option to hide or
show grid details.
Type
Use the drop-down to select the type of offset
to use when calculating sales figures.
Flat Amount
A manually entered offset amount that will be subtracted from reported
sales after the calculation of % Rent Due. This represents an annual amount
similar to the breakpoint.
Billings
A calculated offset amount based on the amount of billings during the %
Rent Billings period for any charges made to the selected income code
for this tenant.
Payments
A calculated offset amount based on the amount of payments during the %
Rent Billings period for any charges made to the selected income code
for this tenant.
Income Code
Use the drop-down to select the income code to
use when figuring the offset amount for Type Billings or Payments.
Description
Display only. Auto-fills a description or descriptive
name for the type of offset you selected in the Type column.
Amount
Enter the amount to offset if Flat
Amount was selected from
the Type column. Or use the Calculator
Button to figure an amount.
Percent To
Enter the percent of the offset amount to use
in the percent rent calculations. Or use the Calculator
Button to figure an amount.
Refundable
Use the drop down to determine if any of the offset
overage is refundable.
Yes
Some or all of the offset overage is refundable.
No
None of the offset overage is refundable
Example:
% Rent Billing calculation for Tenant
A = $5000. An offset is setup for $8000.
If the Offset is set to Refundable, the
tenant would receive a $3000 credit. If the Offset is set to Non-Refundable,
the tenant would owe nothing and not receive a credit.
In the lease it may be agreed upon that
the Property Management guarantee a certain amount of traffic in the building,
like a mall. This gives the tenant the opportunity to make their sales.
A refundable offset can be given if the Property Management was unable
to bring in the traffic.
Max Percent
Enter the maximum percentage allowed for offsetting
sales figures. Or use the Calculator Button
to figure an amount.
Delete
Click the Delete button to
remove the selected line item from the Offset grid.
Fields