Recoveries Profile
Recovery profile has more controls than the recoveries inputs in lease definition. Custom Recoveries Profiles can be created either in the Recoveries tab on the sidebar or in the Method cell under Recoveries.
Properties
| Name | Options | Description |
|---|---|---|
| Name | Name of the recovery profile | |
| Method | Fix Stop Stop/Unit Fixed Fixed/Unit None | Enter a method of recovery. Depending on the selected method, the prompt inputs will vary. Click here to learn more about Recovery Method. |
| Use Base Year Amount | The first-year recovery amount is used to calculate the stop amount for the remainder of the analysis. | |
| Amount | Enter a static amount or use a custom Amount Profile. | |
| Gross Up Override % | Enter the gross-up percentage related to the recovery structure. | |
| Inflation | Enter an inflation rate. Users can apply their custom Inflation Profiles to Recoveries. | |
| Admin. Fee | If there's a fee to administer the expense recovery, enter the fee here, as a %. | |
| Max Limit Method | None Amount/Year %/Year | Users can also implement a maximum increase condition denominated as either a %/year or an amount/year that limits how much each recoverable expense can increase year-over-year. Clickhere to learn more about the Max Limit Method. |
| Max Limit Amount | Enter an annual amount for the Max. Limit Method. | |
| Max Ceiling Method | None Amount/Year Amount/Month Amount/Unit/Year Amount/Unit/Month | Enter an annual ceiling amount for select expenses. A ceiling prevents U-Rite from calculating recoverable expenses above the ceiling amount. If the recovery for the expense is higher than the ceiling, the reimbursement will be the ceiling amount. Click here to learn more about the Max Ceiling Method. |
| Max Ceiling Amount | Enter a Max. Ceiling Amount for the Max. Ceiling Limit. Custom Amount Profile is also available. | |
| Max Ceiling Inflation | Inflation applied to the Max Ceiling method. Custom Inflation Profile is also available. | |
| Allocation Method | Pro Rata Fixed % | Enter an allocation method. Click here to learn more about the Allocation Method. |
| Allocation Percent | Allows users to override the tenant's pro rata percentage with a custom allocation percentage. This inputted percentage will represent the percentage of the total recoverable percentage that the tenant is responsible for. | |
| Building Area | Property Area | The rentable area of the property. This building area will represent the denominator in the tenant pro-rata calculation. To specify a different pro-rata percentage that is used to calculate reimbursement amounts, simply adjust the Building Area column (e.g., the denominator). |
| Reimburse After Method | None Tenant Amount | If the subject property has an anchor tenant that affects how other tenants' Recoveries are calculated, you can use the Reimburse After column to reduce the pool of recoverable expense based on the anchor tenant's recovery contribution. For example, if the Property incurs $10,000 of Utility expenses, and the user selects a tenant in the Reimburse After column that occupies 10% of the building's area, U-Rite will reduce the building's total Utility expense to $9,000, which will become the new denominator used to calculate other tenants' Utility expense Recoveries. |
| Reimburse After Tenants | Allows users to select specific Tenants to reimburse first. | |
| Reimburse After Amount | Users can select a certain amount that they want reimbursements to occur after in the Reimburse After Amount section. Users can specify the amount with the Amount Profile. |
Usage
To create the profile in the Recoveries tab, click the ADD+ button. In a table view, double-click on a Method cell, or click the menu icon on the right. An action view will pop up, displaying existing Recoveries Profiles and offering an option to create a new profile. Click Create new profile to create a new Recoveries Profile.
Once the Recovery Profile is created, add a new expense to the profile by clicking the ADD+ button.
Make sure you've added an expense via the Operating Expense Table in Property Inputs
Expense row can be deleted by checking the checkbox and click DELETE button.