Turnover rent with breakpoints and a yearly true-up
Charge shops a share of their sales above a breakpoint, with higher shares above set sales levels. Tenants send monthly sales from their web page or app, or SmartMy POS sends them. You check and bill each month, then true up the year.
PLANSScale only
Why it matters
Malls and high streets often let shops for a base rent plus a share of sales. The sales arrive by email as PDFs, the breakpoint is worked out on a spreadsheet, and the year-end true-up waits until someone has time. Money is missed when a shop's sales pass a step and nobody notices. In SmartMy Lease the lease holds the share, the breakpoint and the steps. Shops send their monthly sales with the report from their own page. Checked returns are billed as a charge. The true-up screen shows the year's due, what was billed and the balance.
The problem it solves
- Shops email their monthly sales, and someone types them into a spreadsheet.
- The breakpoint and stepped shares are worked out by hand, and mistakes cost you rent.
- The yearly true-up is late, so the shop pays a year's balance in one go and disputes it.
- You cannot see each shop's rent as a share of its sales when it asks for a cut.
How it works
- On a commercial or licence lease, open the Turnover Rent tab. Tick Turnover Rent and set the share of sales, the breakpoint and how it is billed.
- Add Stepped Shares if a higher share applies above a sales level a year.
- Each month a sales return comes in. The shop sends it with its report from the web page or app, SmartMy POS sends it, or staff enter it.
- A Lease user checks the return and presses Checked, then Bill. The turnover rent for the month is added as a charge on the lease.
- At year end, a Lease Manager opens Lease > Billing > Rent > Turnover True-up and picks the lease and year. It shows the sales, the rent due, what was billed and what is left.
- Enter an Audit Adjustment on a return when audited sales differ, then press Bill the Balance.
Everything it does
Turnover terms on the lease
- Share of Sales (%)
- Breakpoint: Natural (base rent a year divided by the share, to start with), Fixed Amount (a breakpoint a year), or None (from the first sale)
- Stepped Shares: a share for sales above a level a year
- Turnover Billed: Monthly on Account, Yearly True-up (to start with), or Yearly Only
Sales returns
- Month, sales before tax, audit adjustment, the report file
- Source: Tenant Portal, Point of Sale, Entered
- Submitted, Checked, Billed, then Audited after the true-up
- A shop can send a month again until it is checked; Back returns a checked return to submitted
- Occupancy Cost (%): base rent and turnover rent of the month as a share of sales
How the rent is worked out
- Monthly: the month's sales are taken as a year (times 12). The rent above the breakpoint and each step is worked out, and a twelfth is billed
- Each band takes its own share: the lease's share from the breakpoint, each step's share from its level
- Yearly Only: monthly returns bill nothing; the true-up bills the year
True-up
- Year from the lease start to start with
- Every return of the year must be checked first
- Bills or credits the balance on the lease and marks the year's returns Audited
- The lease's history keeps the year's due, billed and balance
Sales from SmartMy POS
- Pick the POS on the lease; each month's POS sales before tax arrive as a return with source Point of Sale
- Only when the shop sells on SmartMy POS in the same database
Who uses it
Shop tenantSends monthly sales with the report from the web page or the app.
Lease userEnters returns for shops that send by email, checks and bills them.
Lease ManagerRuns the yearly true-up and enters audit adjustments.
Mall managerReads occupancy cost to judge a shop's request for a rent cut.
Where you use it
- Web: the lease's Turnover Rent tab; Lease > Billing > Rent > Sales Returns and Turnover True-up
- Tenant web page and the SmartMy Lease app: Sales (the app is built and in testing, not in the app stores yet)
- SmartMy POS in the same database: monthly sales by themselves
What you control
Settings
- Breakpoint: Natural to start with
- Turnover Billed: Monthly on Account, Yearly True-up to start with
- Stepped shares per lease
Works with
SmartMy POSA shop selling on SmartMy POS in the same database sends its monthly sales before tax as a sales return by itself.
Questions
What is a natural breakpoint?
The sales level at which the share of sales equals the base rent: base rent a year divided by the share. Turnover rent is due only on sales above it.Can the share rise above a sales level?
Yes. Add Stepped Shares: each step has a sales level a year and its own share for sales above it.How do shops send their sales?
From their web page or the SmartMy Lease app, with the month, sales before tax and the report. A shop on SmartMy POS in the same database needs to send nothing.What if the audited sales differ?
Enter an Audit Adjustment on the month's return before the true-up. The true-up counts sales plus adjustments.Can a true-up be run twice for one year?
Run it once per lease and year. The screen does not yet stop a second run, so check the lease's history before you bill the balance.Which plan has it?
Scale. Sales from SmartMy POS need SmartMy POS in the same database.Related features
WITH OTHER SMARTMY PRODUCTSTenants' monthly sales for turnover rent, with SmartMy POSShops on turnover rent send their monthly sales from their web page or the SmartMy Lease app, or your staff enter them. Taking the sales straight from SmartMy POS is not joined up yet.COMMERCIALService charge with budgets and year-end reconciliationShare a building's running costs among its tenants with cost pools, a yearly budget and each unit's share by area. Bill on account each month or quarter. Reconcile the year from your accounts, with a cap and a statement per lease.COMMERCIALTenant categories and exclusivityGive each commercial lease a tenant category, such as pharmacy or food court, and the categories it was promised as exclusive. A new lease that would break a promise in the same property is refused when you confirm it.TENANTSTenant pages on the webTenants sign in on any browser to see their lease, what is billed when, the deposit, their bills, requests, notices and cheques. They give notice to vacate and answer a renewal offer there too.TENANTSThe SmartMy Lease app for tenants, owners, members and guestsOne phone app for everyone you serve. Tenants see their home, bills and repairs; owners their units and statements; co-working members their check-ins and credits; guests their stay and door code.
See your buildings on it.
Tell us how many properties and units you have, whether you let your own or manage for owners, and how rent is paid today. We will set up your portfolio with you on SmartMy Lease.