Those located in Asia-Pacific will have different terminology in some parts of the system to those located elsewhere. For example:
- Tenancies are called Leases in North America
- Outgoings are called Service Charges in the UK
For the purpose of this article, we will refer to the terminology used in Asia-Pacific. For more information on regional terminology, refer to this article or contact support.
The video below runs for 34 minutes and takes you through creating a Commercial Tenancy. Alternatively, you can read the instructions below.
Once properties have been loaded, it is possible to enter tenancy details. These may be imported or entered manually. There are four ways to start creating a new tenancy.
1. Adding a Tenancy from the Search Menu
Perform a property search, then select Add Tenancy beside the property in the search results.
2. Use the Quick Add (+) icon
Click the + icon in the black navigation bar, then click New Tenancy.
3. Adding a Tenancy from the Tenancy List
If you are working from the Tenancy List, select the New Tenancy button:
Search for the property name and click on the property from the search results.
4. Adding a Tenancy from the Property
If you are working on the property file, go to the Tenancies tab on the left side menu then click New Tenancy.
Creating the Tenancy in the New Tenancy Wizard
Step 1 - Create New Tenancy
- Tenancy Name - Appears on reports and the tenancy list
- Tenancy Type and Tenancy Form - These lists are user defined. Options can be edited on the Settings menu or by selecting + Add New in the list.
- Online Payment Reference - Bank payment reference for trust accounting. Users with Xero or no financial system can also use this to store a unique reference.
- Penalty Interest Rate - For recording purposes only, no charges or calculations are raised using this rate.
- Tenancy Outgoing Concessions - Applies a minimum or maximum amount to all Budgets by default.
- Tags - Adding tags allow you to group items into sub-categories.
- Custom Reference - This field can be renamed and used as you like.
- Default Invoice Template - Set the default PDF invoice template to use for this tenancy. When creating a new invoice or invoice template for this tenancy, the selected template will be applied by default. Invoice Templates can be created from the Company Settings.
- Tenancy Schedule Clauses - Additional Tenancy Schedule Clauses can be added here to display on the Tenancy Schedule report.
- Outgoings Percentage - Copies through when adding Budgets or Direct On-Charge rules. Shows on the Tenancy Schedule report.
- Improvements Rent Percentage - For recording purposes only, no charges or calculations are raised using this rate.
- Contacts - Add any contacts that are related to this tenancy. If the name entered doesn't currently exist in the system a new contact will be created automatically.
- Notice Options - Specify which type of tenancy notices each contact should receive. Options include:
- All Tenancy Notices
- Arrears
- Inspections
- None
- Contact Type - A Primary and Account contact must be specified for each tenancy, but these can be the same contact.
- Click + Add Contact to connect more contacts to this tenancy.
Once all details are completed, click Save and Continue to proceed to the next step.
Step 2 - Tenancy Contacts
Clicking on the contact name from this screen will take you to the Contact file, where you can edit additional details about the contact.
Step 3 - Assigning Areas
Select an area the tenancy will occupy from the list of areas that exist for the property, the click + Add Area to Tenancy to assign it to the tenancy. Multiple areas can be assigned to a tenancy.
Click the Remove icon to remove the area from the tenancy.
Click Continue to proceed to the next step.
Step 4 - Inspections
Setting up an inspection will add reminders on your dashboard calendar. Click New Inspection to create a new inspection, or click the inspection title to make changes to one you have created.
Step 5 - Terms, Rent and Rent Reviews
Terms
Enter the initial term details of the tenancy, and if the Lease agreement specifies Rights of Renewal, click Add Right of Renewal.
You can click as many times as you need to add all the renewals specified in the Lease agreement. If your Lease specifies that the renewals come with an Option expiry date, tick the box to enter the details around when this option expires. Your dashboard calendar will be populated with reminders aligning with the Option expiry date and the Remind me date you specify here.
If you need to remove a Renewal, click the red trash icon.
Rent
Enter the details of the Rent template specified in the Lease.
Rent Template
1. Description - This is displayed in various places around the system, particularly in calendar reminders.
2. Reference - This value will be applied to each invoice and can be anything you want.
3. PDF Template - If a default template was selected in step one this will be selected here already, but you can override this and select another option specific to the rent invoice if you need.
4. Payment Frequency - Specify how often you want invoices to be generated. You can specify any frequency in weeks, months or years, or any Custom Frequencies you have set up.
5. Rent Type - Rent Types are user defined and can be customised in the company settings or select + Add New to create a new one from here. Most commonly this is used to define whether a tenancy is Net or Gross of Outgoings.
6. First Payment - Specify the date you want the first invoice to be generated.
7. Rent Amounts - You can enter a figure in either of these fields (in our example: Monthly Rent or Annual Rent) and the system will calculate the other field. This amount must equal the total of all rent lines on the invoice and you will be prevented from proceeding if it doesn't add up.
8. Generate First Invoice Now - You can choose to generate the first invoice when the tenancy is created or leave it to generate as scheduled.
9. Use Default Ledger - This toggle sets whether the ledger field will always use whatever is set as the property's default ledger. If you ever change the default ledger for the property, you won't have to come back into the invoice template and update that field, it will use it automatically.
10. Tax Selector - This dropdown defines whether the amounts chosen in Rent Amounts (number 7 above) are inclusive or exclusive of tax. This will always default to Tax Exclusive.
11. Outgoings? - Any outgoings added to the rent invoice should be indicated using this switch. Any outgoings lines on the invoice will be excluded from the net rent calculation.
12. Merge Fields - When adding the line item descriptions you can select from the three merge fields available (shown in the curly brackets), which will populate with the correct information when each invoice is generated.
13. Template Totals - you can see here a breakdown of the total amounts to be invoiced on the template, including the relevant tax amount.
Rent Reviews
You can set up your rent review schedule and generate multiple rent reviews from here. Enter the first review date, the review type and frequency then click Generate Rent Reviews. The system will use the current and future terms to determine the rent reviews to be generated. You can edit any information about each rent review before they are created or delete an individual review if you want.
When you are happy with all information click Continue to proceed to the next step.
Step 6 - Bonds
Note this step only applies to trust/client account companies.
Select where the bond will be held - the Bond Authority (you must have a Bond Authority contact set up), in the Bond Ledger or with the owner.
You will need to create a Bond Authority contact to be able to select this option. When the bond is received from the tenant it will be held in the Bond ledger until it is disbursed to the authority.
You can base the bond on a period of rent or input a set amount.
When you have completed all fields you can save the invoice as a draft, approve it or submit for approval.
Click Continue from the main screen to proceed to the next step.
Step 7 - Area Rent Allocation
Note that this page will only display if you have assigned multiple areas to the tenancy in step 3.
Editing the Rent to Area Allocation will set up correct rates for the Tenancy Schedule/Rent Roll report. This step can be performed at any time from the Occupied Areas section of the Tenancy file.
Step 8 - Fees
If there are any fees set up to be raised for a new tenancy, the fees page will be displayed showing details about these fees. You can edit the amount to be paid from here if you wish. Note that this page will only display if there are fees to be raised.
If you are happy with these fees, click Continue to complete the wizard.
You'll see a confirmation and links to view the tenancy and direct on-charge templates or budgets if there are any on the property.