How to Input Lease Rates in STRATAFOLIO

Estimated reading time: 3 min

Never Miss a Lease Escalation

Knowing when you’re approaching lease escalations on your properties is critical to profiting in your commercial real estate business. But often, owners and managers are completely unaware of upcoming increases– whether that’s because they aren’t alerted to it, can’t keep track of their spreadsheets, or just not enough time to sort through their paperwork, lease by lease. The solution to never missing a lease escalation again is STRATAFOLIO.

By entering all your lease rates in STRATAFOLIO, you will be notified when leases are about to expire and rent escalations are due. Additionally, having the lease rates in our software allows you to invoice directly from it, which can save you time and ensure that escalations are automatically updated on the invoice.

Navigate to the Lease

To add a lease rate, first navigate to the lease that needs to be updated. Start at the left-hand navigation panel and select Operations, then Leases. Next, select the “i” next to the Lease that you want to update.

Add a Lease Rate

Once on the lease details page, navigate to the Lease Rates tab where you will see a list of the lease rates that have already been added to STRATAFOLIO. To add an additional lease rate, click on the Add a Lease Rate button.

NOTE: You can also edit any of the Lease Rates from this page by clicking the pencil button next to one of the lease rates.

Enter Lease Rate Information

After clicking the Add a Lease Rate button, the Add Lease Rate popup appears. There are three sections to the Add Lease Rate pop-up window that are discussed, below. Required information is indicated by red asterisks.

Section 1: Lease Rate

This section allows you to enter basic lease rate information and offers space to include additional notes about the lease rate. Information to enter in this section includes:

  1. Lease Rate Start Date – Start and end dates will automatically populate to the next 1-year period from the prior rate entered for the lease. You can update these fields as needed.
  2. Lease Rate End Date
    NOTE: These dates must be within the dates entered for the Lease Term. (Find the Lease Term on the Lease Abstract tab in the image above.)
  1. Base Rent – Then enter the corresponding Base Rent in dollars.
  1. Base Rate – First, select the Base Rate that applies: Per RSF (Annually) or Flat rate (Monthly).
  1. Lease Amount Confirmed Button – Check this button to confirm the lease rate, or leave it unchecked to receive an email notification a month before the new rate goes into effect. Leaving the button unchecked will allow you to be notified and then update any lease rate escalations that may need adjustment due to negotiations with the tenant or changes to the Consumer Price Index (CPI).
  1. Lease Rate Notes – Use this box for any notes pertaining to the Lease Rate. It is often used to note where the lease rate can be found, for example, “Original Lease – Years 1-5.”
  1. Late Charges – Use this box for any notes about Late Charges for this lease.
  1. Payment Due Monthly on Day – Enter the day the payment is due. For example, “1” is entered to indicate that rent is due on the first day of the month.

Section 2: Invoicing

The next section is for Invoicing through STRATAFOLIO. In this section, you should select the Income Item that corresponds with the Income Item you have set up in your QuickBooks. This is the line item that you post the income for rent to in QuickBooks. If these were selected for a prior Lease Rate, they will automatically be carried into this new rate.

Advantages to Invoicing directly from STRATAFOLIO:

  1. STRATAFOLIO will automatically capture Lease Rate escalations.
  2. STRATAFOLIO offers bulk invoicing which allows you to invoice across all your QuickBooks integrations at one time.
  3. STRATAFOLIO syncs the invoices with your QuickBooks accounts.
  4. Accepting invoice payments in STRATAFOLIO streamlines the process and syncs with QuickBooks.
  5. STRATAFOLIO offers an ACH Payment Integration, which streamlines the rent collection process.

Section 3: Additional Charges

The final section in the Add a Lease Rate popup allows you to add Additional Charges to the rate. Examples include an extra storage fee, repayment of a rent deferment from a prior period, or a monthly additional parking fee. Additional Charges appear in a separate line on the invoice but are NOT part of operating expenses.

To add an Additional Charge, first, click Add Additional Charge Type or Add Line Item if you already have a type created. Then add the required information for the Additional Charge.

  • Additional Charge Type – Select from the drop-down menu or click the Add Additional Charge Type button to add a new charge type.
  • Amount and Amount Rate – Enter the amount and choose the rate: Per RSF (Annually) or Flat rate (Monthly).
  • Income Item – Select the Income Item that corresponds to the income item on the invoice in QuickBooks.
  • Note – Add a note if needed.

Saving the Lease Rate

Once all the above information has been entered, click the Add Lease Rate at the bottom of the popup window, wait for your page to refresh, and you will see that the new Lease Rate has appeared at the bottom of the list.

Want to learn more?

Would you like to learn more about what STRATAFOLIO can do to help you manage your commercial real estate properties? Watch our prerecorded 10-minute demo to learn how we can reduce your time and effort by 80%.

Do you want to talk to us directly about how we can help your organization-specific needs? Schedule a 1:1 demo tailored specifically to your organization’s individual goals and needs.

Views: 174

Continue reading

Next: How to the Change Company Address Using QuickBooks Desktop