CPI Rent Increases

This function determines CPI rent increase candidates based on the information entered in the Commercial Lease, CPI Rent Increase profile. The rent increase is then calculated using that information. When the candidate list appears, the tenant and the new rent amount are displayed. Clicking on that line will display the calculated fields for your review. The Source Amount can be changed. The other fields are for information only.

For Example:

CPI Profile

Initial CPI – 211.8

Initial Rent - $980

Percentage of CPI Increase - 50%

Round to - $1

On Scheduled Charges page

New CPI - 250

Calculations

% CPI Change - 18.0359

formula: ((New CPI / Old CPI) - Round To amount) x 100

calculations: ((250 / 218.8) - 1) x 100

% Rent Change - 9.0179

formula: % CPI Increase x % CPI Change

calculations: (50% x 18.0359

Initial Rent - 980

Rent Change - 88.38

formula: % Rent Change x Initial Rent

calculations: (9.0179 x 980

CPI Rent - 1,068.38

formula: Initial Rent + Rent Change

calculations: (980 + 88.38

Round to - $1

New Rent - 1,068