You can set up rent increases/escalations with a lease term you’ve already added to Innago, or while setting up a brand-new lease.
To set them up with a lease you’ve already added to Innago start with the following steps:
-
From the Innago menu on the left, click ‘Properties’.
-
Select your property and unit.
-
Next, click the ‘Edit Terms’ button located in the middle of the page.
-
Click the blue ‘Next’ button to continue.
To set up escalations when you’re adding a brand-new lease term, start by adding the lease start and end dates, and then proceeding to the rental terms page where you’ll enter the security deposit and rent amounts.
Finally, follow the steps below for both new and existing lease terms:
On the Set Rental Terms page when you are adding a new lease or editing a current one, click on the Add Additional Fee button:
On this page, click on the ‘Add Additional Fee’ button located at the bottom.
-
Here, select the item type ‘Rent’ from the dropdown list. Since your rent increase is classified as a Rent item, you’ll want to correctly assign this so that it shows up in your P/L report as part of the rent you’ve collected.
-
Then go ahead and type a description. I’m going to add ‘Rent Increase’ as my invoice description.
-
Type in your quantity and rate here. If your rent increase is a percentage of the rent amount, please calculate this and type in the exact amount in the rate column.
-
Here, we’re creating a 2% increase ($20) for a $1,000/month lease.
-
For a rent increase, you’ll want to set it as a recurring invoice and also make this a line item on your tenant’s rental invoice.
Now you can choose whether you would like your rent increases to stack up or whether you would like just one line item displaying this rent increase. By stacking them up, your tenant will be able to view the rent increase for every year as a separate line item on their invoice. On the other hand, if you would like to add your rent increase as a single line item, then your tenant will see a single rent increase amount on their invoices.
If you want your rent increases to stack up, then:
-
When setting up the additional fee, you will add the start date one year into the lease. For example, if your tenant’s lease starts on the 1st of June 2021, then you can set up your rent increase to start on the 1st of June 2022.
-
The end date of this fee will be set to last for the entire lease term. So, you will add the last day of the lease if it is a fixed term lease or will select ‘No end date’ if it is a month-to-month lease.
-
In our example below, the lease ends on the 31st of May 2026, so the end date of this fee is set up to end on the 1st of May 2026.
-
Click ‘Send’ and this fee will be updated in the system.
-
You can repeat these steps to add on additional rent increases that start 2 years into the lease, 3 years in, etc.
-
Please note that you’ll need to add each increase as a separate additional recurring fee. This means you’d repeat the above steps (making sure to change the start date for the correct year) 3 times to add 3 years’ worth of rent increases.
If you want your rent increases only appearing as a single line item on your tenants’ invoices, then:
-
You will set your additional fee to start one year into the lease and to only last for one year.
-
For example, here I am adding a rent increase of $20 for this lease, to last only for a single year. From 1st June 2022 to the 1st of June 2023.
-
For the next rent increase, you will have to add up the previous rent increase amount, i.e., the previous rent increase of $20 and add it up with that year’s rent increase (which is let’s say another $20 dollars). So here, you will type in $40 as the rate and again will set up this rent increase for just one more year. From the 1st of June 2023 to the 1st of June 2024.
-
You’ll have to repeat the steps mentioned above to add all the years of rent increases that you wish to add.
