Use

If you do not make full use of an available relative or absolute adjustment, then you have to record this in the form of a reserve. You can enter the parameters for this as part of making an adjustment based on relative or absolute factors .

Prerequisites

Features

The calculation of the total reserve is part of the function for adjustment based on relative or absolute factors . The system calculates the total reserve there as follows:

Reserve Based on Change to an Absolute Factor

The reserve based on an absolute factor is calculated as the difference between a rent adjustment you take advantage of and the remaining amount of a condition type for the absolute factor, less the reserve calculated based on the relative method.

You have the option of also applying the given rent adjustments on the condition type of the absolute criteria (prevailing rent, net ROI, or break-even gross ROI), thereby managing the changes of the given condition types in parallel.

Reserve Based on Change to the Mortgage Rate

The reserve for mortgage rates is calculated using the mortgage rate level on which the current rent is based, on a specific date (for example, the date the mortgage rates are published by the canton bank), in relation to the current mortgage rate level from the centrally managed mortgage rate table at the time the change is requested.

Reserve Based on Change to Protection of Purchasing Power (for Risk Capital)

A reserve for purchasing power protection is calculated using the index level on which the current rent is based, on a specific date (that is, the date the index level is published by the Swiss Federal Office for Industry and Labor), in relation to the last entered index level at the time of the change.

Reserve Based on Change to Maintenance and Operating Costs

The reserve for general operating costs is calculated using the cost level on which the current rent is based, on a specific date, up to the current cost level at the time of the change. The system calculates using the percentage annual value in linear dependency. You enter the percentage in the adjustment rule.

Reserve Based on Added Benefits

A reserve based on added benefits is calculated as the difference between a rent adjustment you applied based on added benefits and the calculated share from the adjustment run of the adjustment measure (modernization). This difference is shown as an absolute value on the condition type with the external condition purpose, “modernization investment.” You make the assignment in the adjustment rule.

Treatment of Reserves (Absolute Criteria)

You can also adjust net rent based on relative factors using similar procedures as for conditions of absolute factors. In this way, you can synchronize the net rent, as well as the condition for the absolute method.

For an example, see Other Adjustment Methods (in the Combined Methods section).

Activities

See the procedure in Adjustment Based on Relative or Absolute Factors , since this calculation is part of this adjustment.