Example Alternate Rent Scenario

The landlord has agreed that if the anchor, Super Store, leaves the mall then you as a tenant can pay a reduced rent amount. The reduction is 30% and is limited to six months after the anchor has left. If the landlord manages to replace the anchor then the alternate rent schedule ends immediately and the tenant must resume paying the normal rent amount. The anchor left the mall on 10/31/2015.

Currently the tenant pays $1,000 per month. This is recorded in Lucernex as a recurring expense.

The tenant will create an alternate rent record that begins 11/01/2015 and ends 4/30/2016. The alternate rent schedule will be applied to their Base Rent expense setup. In the alternate rent record they will indicate that the rent payments will need to be reduced by 30%.

When the tenant generates payments for the month of November 2015, the transaction will generate at the reduced amount of $700.

Things to Remember in this Scenario

Lucernex will:

• Reduce the rent payment by 30% upon payment generation.

• Adjust the expense forecast to reflect the change in rent.

  This can be seen by navigating to Contract > Payment Info > Recurring Expenses and selecting Contract Expense Forecast from the field to the left of the Actions menu on the right side of the page.

• Flag the contract as In Alternate Rent on the Contract > Details > Summary page.

• Flag the expense as In Alternate Rent on the Expense Setup page.

• Remove the breakpoint amount from Single and Multiple BP Schedule pages on the Percentage Rent tab.

• Display the alternate rent payment rate in the Single and Multiple BP Schedule pages on the Percentage Rent tab.

• Remove the amount form the Breakpoint Schedule page on the Percentage Rent tab.

Lucernex will NOT:

• Make changes to the expense schedule record.

• Show the reduction on the expense setup page.

• Alter the breakpoint record on the percentage rent setup.