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 Swiss Specifications: Simulating/Calculating Rent Adjustments

Prerequisites

  • Swiss law has been assigned to the business entity.

  • Lease-outs of the business entity have the intended adjustment type for the adjustment method (standard setting 6 country specific ). (Setting in Customizing for Real Estate).

  • The system only adjusts conditions that are permitted for this adjustment procedure (Customizing settings).

  • Rental units are assigned to an external usage type that permits the adjustment method (setting in Customizing for Real Estate).

Procedure

  1. Choose Start of the navigation path Accounting Next navigation step Real estate management Next navigation step Rent adjustment Next navigation step Country specifics Next navigation step Swiss law Next navigation step Simulate or calculate. End of the navigation path

  2. Enter your selection criteria.

Caution Caution

The user ID , validity date and adjustment type identify the adjustment run. Assign this identification once only.

For all further processing steps, you refer to the adjustments made using this identification.

End of the caution.

Activity

Tab

Procedure

You only want to pass on rent increases and not any rent reductions resulting from the rent adjustment

Parameters

Select the Adjust only for increases field

Determine validity of adjustment

Edit the Valid from date and Next normal date of notice fields ( Example )

You want to adjust the rent reserve from comprehensive renovation and investment in the same relationship as the adjustment based on relative factors

Procedure

Select the Added value on adj. reserve field ( Example )

You want to first pass on rent reductions (for adjustment based on relative factors) to the rent reserve, and only then to the rent once the reserve has been exhausted

Select the Forward reduction to rent reserve field.

You also have the option of prioritizing the rent reserves required for this.

( Example )

Adjust rent based on gross yield

Select the Marginal gross yield field. (See also Additional Data for Swiss Rent Adjustment )

Adjust rent based on standard local rent

Select the Rent in accordance with locality field

Update adjusted, standard local rent in the rental unit as new rent

Select the Adjustment typical local rent field

Adjust rent based on interest series and index series

Maintain the fields in the group box Relative method ( Example )

Restrict adjustment to a certain amount (percentage, absolute, area unit)

Limits

If the adjustment amount exceeds the value defined here, the excess amount is passed on to the rent reserve (added value)

  1. Choose Execute.