Those located in Europe will use the terms Service Charges, where customers located in North America and Asia-Pacific will use the term Outgoings. Those located in North America will also refer to tenants as Leases. For the purpose of this article, we will refer to it as Outgoings and Tenants. For more information on regional terminology, please refer to this article.
A cap or collar can be added to a budget so you have some control over how little or how much a tenant will contribute towards the Outgoings charges.
- A collar indicates the minimum amount the tenant will be charged for this budget.
- A cap indicates the maximum amount the tenant will be charged for this budget.
Note this limit applies to an individual budget, not a single allocation within a budget or across all budgets for the property.
The cap or collar can be specified on the tenancy details and will be applied to all new budgets the tenancy is associated with by default. This can be overwritten in the budget.
Open the Tenancy Details tab to specify a default cap or collar amount for a tenancy. You can enter either a cap or a collar, but not both. The cap or collar set on the tenancy will be applied by default when a new budget is created for the property.
You can edit or delete this amount while the budget is still in a draft status by clicking Edit Tenancy Concessions.
To see how the tenancies allocation will be affected by the cap or collar during the approval process, open the Details tab of the budget.
- Totals: This is the sum of all allocations apportioned to the tenant before any cap or collar is applied.
- Cap: The maximum payable by the tenant. If the budgeted allocation exceeds the cap, the tenant's allocation will be adjusted to equal the cap amount. If the cap exceeds the tenant's budgeted allocation, the budgeted allocation will not be adjusted.
- Collar: The minimum payable by the tenant. If the collar exceeds the tenants budgeted allocation, the tenant's allocation will be adjusted to equal the collar amount. If the budgeted allocation exceeds the cap, the budgeted allocation will not be adjusted.
- Adjusted Allocation: The amount that will be charged to the tenant throughout the budget period.