Creating a Commercial Tenant Agreement

Overview

Creating a Commercial Tenant Agreement

This article is a guide on creating commercial tenant agreements in Reapit PM.

How to Add a Commercial Agreement

1. Navigate to Property > Commercial. Open the Property File.

2. To add a tenancy agreement, open the Property, within the Tenancy section, click the 3 Action Dots and then choose Add New Tenancy.

3. Select from the list an existing contact, or select Add New if required. Note: Once you’ve created your primary tenant, additional tenants can be added by searching or adding new.

4. Select Save and Next once done.

5. Enter the lease details.

Note: Fees will display based on the owner's agreement, ie if the first rent receipt for the agreement is charged then a letting fee must be attached to the Owners agreement.

6. When entering rent, select if the lease includes or excludes GST, select if rent is a Net or Gross Value, enter the annual Net Rent, select period and amount. Note: When you put a figure in the Annual Gross Rent field, a blue box will appear with the Annual Rent Calculations. It will include the annual net rent, GST and the annual invoiced rent. The annual invoiced rent and the annual gross rent are different because it will note any difference between invoiced and actual. This may be due to invoicing periods, lease start dates or rounding. 7. Select if you’d like to create recurring rental invoices, select the checkbox then choose the date to send the next invoice on and the Invoice due date.

Note: Reapit PM will display a warning if there are any issues with any of these dates. Click Here to access the Changing Commercial Rent Schedule for New Tenancies article. 8. Select the period to show on the next invoice. This can be the current period or next if you invoice further in advance 9. Enter the amount due excluding GST. 10. Select if you would like to add GST or not. This will be greyed out if you have not enabled GST on rent in the rent section of the Tenant agreement. 11. All newly created tenant agreements will have Amount Due "expected" as default. This is related to any rent reviews that will be coming up. 12. By selecting expected, it will take into account rent reviews and amend recurring invoices from the new rent review date. By selecting Fixed, the rent amount will not change on the recurring invoice in the event of a rent review.

Note: If there is a gap between the paid to date and the due date, a warning will appear under the amount due section. This may be because you started a rent period halfway through the month. In this situation, you would manually invoice the tenant via Accounts then select Invoices, for this period.

13. A summary of what will happen will display in blue, please check this and all information before saving.
14. You can then add a recurring outgoing invoice, once again select the dates and the period to show on the next invoice, you can also choose to Use Tenancy Rent Periods by selecting the checkbox.
15. Select the dissection, enter the description and enter the amount.

Note: When entering a bond, you have the option to select held in trust or held externally.

16. In the final screen, you can then schedule a Routine Inspection. If your office is with Console Pay, you can then setup your tenant's payment schedule from this screen. 17. Finally, enter any rent reviews for the lease by selecting Add Another Line. 18. Choose the type of rent review and enter the amount accordingly.

• Once done select Save, or skip the step if you’re not yet ready to enter this information. You’ll then be presented with the Tenants Agreement view where you can see all information relevant to the tenancy.

19. Renewal Options - You can add your Commercial tenancies lease options to each individual tenancy agreement. This enables you to store and report on these options, along with other related tenancy information, all from within Reapit PM. It includes the ability to record multiple options of varied periods, the type of associated review, critical open/close dates and the ability to Mark as Exercised once a corresponding rent review has been actioned.

20. Click Add New.

21. Select the option period, option open, option close and review type. Click Save.