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 Rent Adjustment Based on Swiss Law

Use

Using this function, you can adjust net rent conditions as a result of changes to the following:

Relative factors:

Mortgage rates

General maintenance and operating costs

General increase in the cost of living (protection of purchasing power)

Absolute factors:

Prevailing rent

Net ROI

Break-even gross ROI

Added benefits (modernization investments)

If you do not make full use of an available adjustment, then you have to record this in the form of a reserve .

In addition, you can also use the general adjustment methods (described under Features) in Switzerland.

Prerequisites

You made settings in Customizing . You also entered certain parameters in the master data that are specifically for the adjustment.

Features

As set forth by Swiss tenancy law, you can use the following adjustment methods:

Adjustment based on relative or absolute factors

Adjustment based on other adjustment methods :

Adjustment based on modernization (adjustment measure)

Adjustment based on index-linked rent

Adjustment by entering graduated conditions

Adjustment using combined methods

The system calculates rent adjustments and the reserve in the same way as the general rent adjustment method .

Activities

You enter the parameters for the adjustment run and for calculating reserves using the same procedures as for a general rent adjustment method .

To do so, on the SAP Easy Access screen, choose AccountingFlexible Real Estate ManagementAdjustment of ConditionsAdjustmentSpecify Adjustments .

Select the real estate contracts and rental objects for which you want to adjust conditions.

Set the indicator for the Swiss procedure that the adjustment rules for relative and absolute factors are assigned to.

On the Processing Paramet. tab page, you can enter additional parameters for the adjustment.

You can only use one of the two methods for the adjustment.

For more information, see Adjustment Based on Relative or Absolute Factors

Run the program.

The system displays the adjustment amounts.

Result

You adjusted conditions. You can then use the rent adjustment form to notify tenants in writing about the rent adjustment.

For more information on subsequent processes, see:

Subsequent Process: Notice

Subsequent Process: Subsequent Rental