Recurring Charges

The Recurring Charges section is used to enter any payments from the Tenant to LL that are made on a recurring basis. Abatements of recurring charges are also entered here.

Adding a Recurring Charge

Step 1

Select Recurring Charges from the Navigation Tree and click “Add” in the Pane 1 Toolbar.

Step 2

Specify the following information:

1. Space: From the drop-down list, select the Space record to which the Recurring Charge applies (remember, a Space record is used to aggregate all suites that have the same characteristics).
2. Charge Code: From the drop-down list, select the appropriate Charge Code for the recurring charge being entered. These codes are pre-populated and often reflect the charge codes used in your accounting system, which facilitates the export of financial lease data from rAbstract to the accounting system.
3. Frequency: From the drop-down list, select the frequency at which the charge gets paid.
4. Begin Month: Optional. Monthly (always enter 1.), Quarterly (enter 1, 2, or 3, to indicate which month during a calendar quarter the charge is to be paid. Ex: 1 for Jan., Apr., July, or Oct.), Semi-Annual (enter 1 - 6 to indicate which month during the 6-month period the charge is to be paid. Ex: 1 for January or July), Annual (enter 1 - 12 to indicate which month during the year the charge is to be paid)
5. Space Begin, Space End, Space Area: Nothing to be entered here. These are read only fields that will be populated with information about the Space which was selected in the Space field.
6. Click the “Save” button in the upper pane to save the recurring charge record.
7. Notes: If notes are needed to add anything about the charge, add a note.

Step 3

Add the dates and charge amounts in Pane 2.

1. In Pane1, highlight the space record for which recurring charge data is to be entered.
2. There are 3 choices for adding charge data:
   • “Run Wizard” – Used when the initial charge increases by the same $/sf/yr or %/year for the same periodic intervals (i.e., initial rent of $22.00/sf increases annually by $0.50/sf, or initial rent of $25,000/year increase by 3%/annum. See additional information below on use of the Recurring Charge Wizard).
   • “Add Multiple” – Used when there is more than one recurring charge amount to be entered. When selected, the user is asked how many rows will be entered. The number of rows should equal the number of recurring charge steps to be entered. Adding multiple will eliminate the need to Add and Save each individual recurring charge step.
   • “Add” – One row will be added on the recurring charge grid. After the recurring charge amount is input, the record must be saved before each additional row can be added.
3. Begin Date – Enter the date that the recurring charge step begins.
4. End Date – Enter the date that the recurring charge step ends.
5. Amount and Amount Type – Enter the amount of the recurring charge and an amount type from the drop down list that corresponds to the charge amount entered. The Amount Type selected should always have a time component (i.e., $/sf/year, $/month, etc. Do not use an Amount Type such as “$ Amount”, as this has no time component).
6. Click “Save” in the Pane 2 Toolbar (if “Add Multiple” was selected, only one save is necessary after all recurring charge steps have been added; if “Add” was selected, a save is necessary for each recurring charge step).

Using the Recurring Charges Wizard

When the “Run Wizard” button is clicked, the following pop-up will appear for the Recurring Charge Wizard:

Fields should be filled out as follows:

1. Charge Begin: Enter the date that the recurring charge begins. The Wizard defaults to the applicable Space commencement date.
2. Term (mos): Enter the number of months for which recurring charges will be entered (typically equals the term of the associated Space record).
3. Step Offset (mos): If nothing is entered in this field, all steps will occur annually (every 12 months). If the first step will occur more than 12 months after the Charge Begin date, enter the additional number of months (above 12) until the first step will occur. All subsequent steps will be assumed to occur annually (for example, if the first step occurs 15 months after the Charge Begin date, the user would enter “3” in the Step Offset field).
4. Charge: Enter the initial recurring charge amount (either $/sf/year or $/year).
5. Increment: Enter the %/year or the $/sf/yr. that the initial charge will be incremented
6. Abate (mos): If there is an initial abatement of the charge, check the box and enter the number of months from the Charge Begin date that the charge will be abated. This is often used in conjunction with the Step Offset field (for example, many retail leases have a period of time between the commencement date and the rent commencement date during which the Tenant builds-out their space, rent free. A lease may read that the term is 63 months, but the tenant receives an abatement of rent for the initial 3 months to build out their space with rent commencing in month 4 and increasing annually thereafter. In this case, the Term would be entered as 63 months, Step Offset would be 3 months, and the Abate box would be checked and 3 months entered).
7. Click “Preview” to review the recurring charge schedule.
8. If the results are acceptable, click “Insert” to import the preview from the wizard into the Pane 2.

Info: Upon clicking "Insert," any existing charges contained in Pane 2 will be overwritten. After the dates and amounts are inserted into Pane 2, individual rows may be edited, if necessary.