The following is displayed here:

• The status of the mortgage loan rate, that is defined in Customizing for the regional location for the date, on which the currently effective rent is based.
• The most recent mortgage loan rate displayed on the key date.

The percentage of the mortgage loan rate that is passed on to the tenant is defined in Customizing.

The current rent in the example is based on the mortgage loan rate from 04/01/1995 with 9 %.

The mortgage loan rate effective on the key date 01/26/1996 is 8.5%.

The result is a rent reduction of 3.92 % in accordance with the rules defined in Customizing (1.96 % per quarter percentage point).