24 Sep Using the Lease Module
Applicable accounts: ‘Regular’ Account ‘Enterprise’ Account
The Lease module is simple to use with most fields being self explanatory for anyone experienced with property management. Note that some fields may not be relevant to your type of franchise and these can be removed if required, just submit a customization request.
The key parts of the form are as follows:
Top Panel
- Type: this indicates if the lease is current, expired or in a hold over period. Note you never should delete a lease record – unless it was incorrectly created. If the lease has finished/expired you should set this Type to Expired.
- Reference: this is a free text field that allows you to record your own reference number against the Lease.
- Lease Document: by default the system allows you to save up to three documents on the lease record.
Related Franchise & Lessor Details
- Used to store the related Franchise (Store) in the drop down, note this list is populated from your Franchisee module.
- Lessor information is also entered here.
Lease Details
- This is where you can store key information relating to the lease. It includes date fields such as Start, Expiry and Option dates.
- The Usage Clause field is particularly useful for food based franchise systems that have restricted leases about what activities can be carried out on the premises.
Occupancy Table
- The occupancy table is used to store the annual lease information, the rent increase info and key financial data relating to the lease.
- Each year of the lease should have an entry. So if you hold a 5 year lease, with an annual increase amount, then you would expect to have 5 rows within this panel. Each row will have an effective date and the related information for that year.
- Note often lease increase amounts will be dependant on unknown future figures, such an an increase being ‘CPI + 5%’. In this instance you would only enter the rent amount figure once the effective date has passed and the CPI amount to be applied is known. Prior to this you can still create an entry for each row, record the ‘Method of Rent Increase’ as ‘CPI + 5%’ but leave the ‘Rent Amount’ blank. This way users can understand how the rent will be calculated when the time comes.
Reminder
- The reminder panel allows you set a reminder for a specific person on a specific date.
- You must check the tick box to activate the reminder, then you can select the reminder date and to whom the reminder should be sent.
- On the day of the reminder an email will be sent to the selected user.
Managing Agent (tab)
- Used to store names and contact details of the managing agent.
Centre Details (tab)
- If the property is located within a shopping centre it is useful to record the centre management contact details here.