Initial setup
When you add a tenant to a commercial property, you can set up recovery.
On the Recovery Setup tab of the Tenant screen, click the Add Recovery Setup button. A screen for recovery setup appears.
The screen has two sections: one for the monthly estimate charge, and one for annual reconciliation. In both of them you select a charge code and add other details.
Breeze comes with pre-configured expense pools and charge codes. For a typical "triple net" lease, you can use the following setup:
Estimate Charge Code | Expense Pool | Reconciliation Charge Code |
CAM Estimate | Common Area Maintenance | CAM Reconciliation |
Insurance Estimate | Property Insurance | Insurance Reconciliation |
Property Tax Estimate | Property Tax | Property Tax |
If you want to have a single estimate charge, we recommend the following setup:
Estimate Charge Code | Expense Pool | Reconciliation Charge Code |
CAM Estimate | Admin | CAM Reconciliation |
The Admin expense pool contains all the recoverable expense accounts, including Common Area Maintenance, Property Insurance, and Property Tax.
If you want to design a custom setup, we recommend that you look at the expense pools carefully. Do NOT duplicate accounts at the lease level. If you do, you will be charging tenants twice for the same expense.
Recovery Setup Screen
This following section gives an explanation of each field on the Add Recovery Setup screen.
Monthly Estimate Charge Section
Charge Code: The charge code for the estimate charge.
From, To: The dates for the estimate charge. The date fields default to the lease dates. (Note: You must complete both fields. If you remove the "to" date, when you save, Breeze will give an error message.)
Amount: The amount of the estimate charge.
Notes: Enter notes about the setup (as needed).
Annual Reconciliation Section
Expense Pool: The expense pool that the estimate charge refers to. (Each expense pool is reconciled separately.)
Reconcile Code: The charge code for the reconciliation charge.
Fixed Prorata Share %: The tenant's share of the expenses in the pool.
Base Amount: If you enter a base amount, the tenant's share is calculated on the amount in the pool that exceeds the base amount. For example, if the base amount is $10,000, and the total expenses for the year are $12,000, the tenant's share is calculated on $2,000.
Management Fee: If you complete this field, tenants are charged an additional fee (a percentage of their share).
Cap: A dollar amount, a limit on the tenant's share of the actual expenses. If the tenant's share is larger than the cap, the tenant is charged the cap.
Editing a Recovery Setup
You can modify a tenant-level recovery setup at any time.
Open the tenant record and go to the Recovery Setup tab.
Right side of screen:
Locate the recovery charge and setup that you want to modify. Each charge is a row on the table.
Scroll to the right and click the Edit icon. The Recovery Setup screen appears.
Modify the screen as needed and click Save.
Note: You can modify the setup at any time, but it will only affect future charges and reconciliations. It will not change any charges that are already on the Tenant Ledger.