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Escalation clause with regard to Security Deposit Contract

Former Member
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Hi,

How to check if any option is there for having escalation clause with regard to Security Deposits contract?

As you know, the periodic posting for security deposit contract happens only once. Suppose, when rent amount( Rs.10,000) gets increased @ 10%(i.e., Rs. 11,000) in next year then, how to handle this kind of situation??

Regards,

Shankar

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Answers (1)

Answers (1)

Former Member
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Shankar,

This is very standard scenario in REFX but not for security Deposits (SD). My understanding was SD is paid once, i.e. may be upfront and mostly once in life time of the contract, unless you do any improvements or do amendments to the contract. In any case if thats ur requirement I am not challenging it.

You can configure a Rent adjustment Rule with variable allowed to be modified in contract for % increase. Make it No CPI or indexed based. When you create Contract assign the condition to this adjustment on the contract, you can define the frequency of adjustment in the contract or in the config too. Using the standard adjustment tools you can increase the rent whenever it is due or anytime you wish.

You can also use the grading functionality to have increased rates for future period if you know the % $ increase upfront.

Let me know if you have any other specific question.

Jag