Adjustment Method: Adjustment Measure

Use

You can use this method to adjust conditions based on the costs of an adjustment measure. Adjustment measures belong to one of these types:

Custom measure
Modernization
Expert opinion
Cost efficiency analysis (Germany only)

You can limit the rent adjustment, if you choose to voluntarily forego a portion of the rent increase. In that case, you need to define capping provisions and limits. In Customizing for Start of the navigation path Flexible Real Estate Management(RE-FX), chooseAdjustment of Conditions (Rent Adjustment) Next navigation step Adjustment Rules – Cross-Method Define Adjustment Parameters (Capping Provisions) Dependent on Term. End of the navigation path If the adjustment amount exceeds the limits you set, then the system can create a statistical waiver conditionfor the rental objects or contracts.

Note Note

You can break costs down into costs items, both for adjustment measures and for the individual costs for each object, in Customizing for Start of the navigation path Flexible Real Estate Management (RE-FX).ChooseAdjustment of Conditions (Rent Adjustment) Next navigation step Adjustment Measure (Such as, Modernization, Cost Efficiency Analysis) Master Data Structuring of Costs. End of the navigation path This breakdown can be helpful in correspondence, allowing you to display a more detailed account of which costs were considered.

End of the note.

Prerequisites

You made the settings described in Adjustment of Conditions (Rent Adjustment) .
You assigned adjustment rules to the conditions you want to adjust in the contract or rental object. For more information, see Defining the Adjustment Process in the Contract/Rental Object .

Features

According to German law, the amount entered in the adjustment measure that is distributed to the condition for rent is not allowed to exceed a certain percentage (11%) of the total costs for the object. This applies to the following adjustment types:

Custom measure
Modernization
Expert opinion

The system therefore multiplies the total costs by this percentage rate. The amount determined is distributed to the rental objects or contracts based on a measurement amount.

Calculation of amount per object:

((Increase amount of measure

- Decrease amount of measure)

* Percentage surcharge / 100

* Object measurement / Total measurement))

- Decrease amount of object.

You can still limit the amount determined by the minimum of the maximum increase amount for the adjustment measure.

Activities

You create adjustment measures in the RE Navigator (RE80). Follow the procedure described in Processing Adjustment Measures or Editing Cost Efficiency Analyses . You specify the type of adjustment measure by the adjustment rule you assign. In the adjustment measure, you enter the costs involved and assign the real estate objects to the adjustment measure.
For custom measures, modernization, and expert opinion, you specify in the adjustment run which adjustment method you want to use. For more information, see Specifying and Editing Adjustments .
For cost efficiency analyses, you have to create a special adjustment measure. For more information, see Cost Efficiency Analysis .