Use

Adjustment by fifteenths is a rent adjustment method that allows for increasing rent incrementally over a period of fifteen years. This procedure is required in certain cases when there is a change of ownership and the tenant is a commercial tenant (Austrian tenancy law §46 MRG).

Integration

Adjustment by fifteenths is a separate rent adjustment method that you assign to a condition in the contract. Therefore you use standard system functions and an adjustment rule (see Adjustment of Conditions ). You need to implement a BAdI that makes the country-specific calculations.

Prerequisites

You made the necessary Customizing settings:

Features

For the rent adjustment, assign the adjustment rule you created for adjustment by fifteenths to the condition you want to adjust. In addition, you create another condition with a statistical condition purpose. You enter the term and target rent on this condition. You then execute the adjustment run.

For more information on this process, see Adjusting Conditions by Fifteenths .

Activities

Once you have assigned the Adjustment by Fifteenths method to the contracts to be adjusted, you can execute the adjustment run.

Example

The current rent of EUR 100 should reach EUR 1,600 in 15 years. This is the target rent (reasonable rent). The increase should take effect starting on January 1, 2006.

The conditions have the parameters listed below.

The first adjustment, to EUR 200.00, takes place on January 1, 2006.

If you want a stable value guarantee (using an index) for the target rent, you also have to define an index adjustment term and assign it. However, increasing the “fifteenth” due to the value stability clause is only allowed after an index change exceeding the threshold value has taken effect as defined by tenancy law. In other words, the index change must already be in effect, by the tenets of tenancy law, at the time of the adjustment.

Example with Stable Value Guarantee: