Customizable lease terms like rent escalation and rent-free periods are no longer an add-on, we see it becoming a clear differentiator. This configurability can be achieved with MonkSpaces.Ai. 

Why Are These Lease Options Important for Property Managers?

CASE 1: Imagine a co-working tenant signs a 5-year lease at Rs. 10,000 per month, with a 7% annual escalation. 

CASE 2: A property manager offers a 2-month rent-free period on a 7-year lease for a private office space. For a monthly rent of Rs. 10,000, the tenant saves Rs. 20,000, making the offer financially appealing. The 2 month period might also be used to turnover the unit before occupancy. 

In both the above examples there are 2 problems: 

1. 1.
   Lack of Tracking: Not all PMS’s out there have a way to enter this data. Not tracking this data can prove costly for an operator. P.S: Probably, custom fields can be created, but custom fields lack any business logic. 
2. 2.
   Complicated and Error Prone Accounting practices: Data entered and not enforced becomes pointless. Operators need to enter this information, keep track when renewals are happening for a customer and then invoice the amount correctly for the accurate number of seats occupied. 

How MonkSpaces.Ai Simplifies Lease Configuration for Rent Escalation and Rent-Free Periods

Tracking Rent Free Period and Escalations at the contract level: Operators can enter the rent free period and the rent escalation at the contract level. Once we know the base rent for the 1st period, we will automatically calculate the rest. 

Automated Accounting setup: Once a month, when a bulk creation for a property is done, we will pick up the values that the contract states based on the escalated amount at the time. 

How can this be achieved in our system?  

1. 1.
   Navigate to Core System: Start by logging into MonkSpaces.Ai's platform and navigating to the Contract Management module, the core of our lease configurability features.
2. 2.
   Edit Contracts: Within contract management, select an existing contract you want to adjust or create a new one. This is where you can specify terms like rent escalation percentages and schedule rent-free periods.
3. 3.
   Add Rent Escalation Terms: When creating or editing a contract, simply input the escalation rate (e.g., 7% for 12 months). The system will automatically calculate future rent adjustments, giving you a clear schedule of rental income over the lease term.
4. 4.
   Set Rent-Free Periods: To add a rent-free period, specify the days from the contract start date when the rent should be waived.  The system will adjust the payment schedule accordingly, showing a -rent period for the designated days. 

Both Rent escalation and Rent-free periods will communicate collectively to present a clear and easy picture. 

Rent escalation and rent-free periods are powerful tools for both attracting tenants and maintaining financial stability in co-working and private office spaces. MonkSpaces.Ai’s contract management system makes it effortless to configure, track, and modify these terms, giving you the flexibility to meet market demands.