Use

You can use the following general adjustment methods in Switzerland:

Prerequisites

You made settings for general adjustment methods and for rent adjustment based on Swiss law in Customizing.

You entered conditions in the master data of rental objects and real estate contracts.

Activities

Construction MeasuresAdjustment Type (Adjustment Measure/Modernization)

This adjustment type is a general adjustment method. Using this adjustment method, with an adjustment method based on Swiss law, you can adjust or create a condition for a reserve for “modernization investments,” “modernization,” or “added benefits.” These terms are used synonymously.

First you have to perform a rent adjustment using the general procedure for adjustment measures . As a result of this adjustment, the condition for the reserve is created or changed (modernization investment or modernization). You pass on this reserve to tenants in a second step, the adjustment based on relative or absolute factors. You can perform this adjustment even if you do not want any further calculations (using the relative or absolute methods), that is, if you only want to pass on the modernization costs. This ensures that, for this adjustment, the tenant is also informed of the applicable reserves (relative und absolute) on the rent adjustment form.

Index-Linked RentAdjustment Type

If an index-linked adjustment was agreed on, then the law requires a contract term of five years. It is the responsibility of the user to ensure that this rule is adhered to. For an explanation of how to perform index-linked adjustment, see Index-Linked Adjustment .

Adjustment by Entering Graduated Rent

If graduated rent was agreed on, then the law requires a contract term of three years. It is the responsibility of the user to ensure that this rule is adhered to. You enter graduated rent like an adjustment without an adjustment run: You create the gradings when processing the contract. On the Conditions tab page, choose with the quick info text Generate Grading . In addition, the law for graduated rent requires that a new graduated rent level is shown in the rent adjustment form at least four months before it takes effect.

No extra rent adjustment is required for graduated rent. Instead, you are only required to print the form for graduated rent. You can use transaction REXCCPCHA400 to select and print the gradings as they come due. You have to enter a selection date and the correspondence activity in the selection screen. The program selects all contracts that have a valid-from date the same as the selection date, and prints the rent change form for these selected contracts.

Combined Methods

You can combine the Adjustment Measure adjustment method with the method based on Swiss law.

Enter a percentage rate or absolute amount in the Release Rent Reserves field. You can also enter a value of 0%. The difference between the amount you enter and 100% is entered as a reserve on the object. On the form, the system displays the amount of the adjustment, with the explanatory text from the adjustment measure, and the current value of the Added benefits condition as a reserve.

If there are still reserves due to added benefits, then you can clear a percentage of them and include it cumulatively in each running adjustment. (The procedure is similar to that for creating reserves.)