Conditions

You can define all of the conditions that dictate the commitments that your company must assume under the contract (such as administration fees, building maintenance, and electricity fees). The Conditions form allows you to summarize each condition defined in the contract, and to read the information quickly without having to search in the contract.

Note that additional condition Expense Types can be added in Admin > Picklist Management > Contract > Condition Type.

For each condition defined, you can indicate who will be responsible for fulfilling the condition and who will be responsible for the payment. You can also identify cost increases, administration fees, and your share of the expenses.

To modify or delete an existing condition, click in the Actions menu and select the required action.

To add a condition:

1. Click Main Menu > Contracts and open the required contract.
2. Click Conditions.
3. To add and define a condition, click to open the Create Condition window.
4. Select an Expense Type.
5. Set a Start Date and End Date.
6. To indicate who is responsible for managing or maintaining the property, fill in the Managed by field. Note that this field is for informational purposes only.
7. To indicate who is responsible for the payment of any expenses, fill in the Paid by field. Note that this field is for informational purposes only.
8. To indicate who is responsible for replacing any damages, fill in the Replaced By field. Note that this field is for informational purposes only.
9. Select a Condition Type.
   • If "Fixed" is selected:
     1. Enter a Fixed Increase Percentage (%).
   • If "Pro Share" is selected:
     1. Select a Pro Share Type.
        • If "Fixed Percentage Pro Share" is selected:
          • Enter a Pro Share Fixed Percentage (%).
        • If "Area Based Pro Share" is selected:
          1. Select a Dividend Area Type.
          2. Select a Divisor Area Type.
     2. Select a CAP Type. CAPs determine the limit that the tenant is required to pay for their share of common area maintenance costs. The limit can be increased over time based on the CAP Type selected:
        • None: There is no CAP for this condition.
        • Fixed CAP: The CAP is a fixed amount.
          1. Enter a Fixed Amount.
        • Over Year CAP. This is calculated based on the previous year's expenses:
          1. Enter a Base Amount.
          2. Select a Base Year.
          3. Enter the Max Increase (%).
          4. Select whether the Over Year CAP is cumulative or compounded.
             • Over Year Cumulative: The CAP is calculated by applying the Max Increase (%) to the previous year's expenses.
             • Over Year Compounded: The CAP is calculated by compounding the Max Increase (%) each year, with the increased percentage being applied to the previous year's expenses.
        • Over Base CAP. This is calculated based on the selected Base Year:
          1. Enter a Base Amount.
          2. Select a Base Year.
          3. Enter the Max Increase (%).
          4. Select whether the Over Base CAP is cumulative or compounded.
             • Over Base Cumulative: The CAP is calculated by applying the Max Increase (%) to the Base Amount, and it increases by the resulting amount every following year.
             • Over Base Compounded: The Max Increase (%) increases on a compounded basis. This percentage is then applied to the Base Amount.
10. Add any additional information and any related notes.
11. Click Save.

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