Do you have a property that is having a rent increase? Looking to keep track of rent escalations for your properties? In STRATAFOLIO, you can stay on top of your rent escalations easily!
It is important to enter all your Lease Rates in STRATAFOLIO, as it helps ensure you will be notified when leases are about to expire and rent escalations are due. Additionally, having the Lease Rates in STRATAFOLIO allows you to Invoice from STRATAFOLIO, which can save you time and ensure that escalations are automatically updated on the invoice.
How to Add a Lease Rate
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 Properties, 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. On the Lease Rates tab, 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 popup window that are discussed, below. Required information is indicated by red asterisks.
Section 1: Lease Rate
The first section requires basic lease rate information and offers space to include additional notes about the lease rate. Information to enter in this section includes:
- Lease Rate Start and End Dates – Start & 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.
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.)
- Base Rent and Base Rate – First, select the Base Rate that applies: Per RSF (Annually) or Flat rate (Monthly). Then enter the corresponding Base Rent in dollars.
- 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).
- 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.”
- Late Charges – Use this box for any notes about Late Charges for this lease. An example entry for this box is: “Late Fee: 10%. NSF Fee: $25.00.”
- 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. Also, if you are using the classes feature in QuickBooks, select the Income Classification that is correct for this tenant. 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 monthly garbage fee for a restaurant, 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 Line Item or Add Additional Charge Type if you already have a line entered. 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 and Income Classification – Select the Income Item that corresponds to the income item on the invoice in Quickbooks. Select the Income Classification if applicable.
- Note – Add a note if needed.
Scroll to the right to see more:
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.
Would you like to learn more about what STRATAFOLIO can do to help you manage your Commercial Real Estate Properties? Contact us for a demo, we’d love to show you all that STRATAFOLIO has to offer!
If you have any suggestions about what kinds of functionality you would like to learn more about STRATAFOLIO, let us know. Please send us an email at [email protected]